Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Labor supports the Customs Tariff Amendment Bill, which sets a closure date for the concessional tariff scheme, defines certain food items and repeals parts of the Customs Tariff Act that are no longer applicable. Closure of the Enhanced Project Bylaw Scheme was announced in the 2016-17 Commonwealth Budget. The scheme provides tariff concessions for some imported goods used in mining, resource processing, agriculture, food processing and packing, manufacturing, gas and power supply, and water supply. The most frequent application of the concession has been in mining projects. However, use of the scheme has declined as the number of free trade agreements to which Australia is a party increases. Users, including mining companies, have not raised concerns with us about the scheme's impending demise. It is worth noting that the end of this tariff concession will not affect obligations companies may have under the Australian Jobs Act. They must still comply with the requirements of Australian Industry Participation plans. This bill gives effect to the budget measure by setting 31 December this year as the closure date.

Perhaps of more interest to Australian consumers will be the section of the bill that resolves two vexing questions: what kind of vegetable is a gherkin?    When is a seafood wonton really pasta? Senators who have lost sleep worrying about these questions will be relieved to learn that they need be anxious no more. The answers can be found by reading the bill and its explanatory memorandum—which makes all things uncertain clear. The questions arise from two Administrative Appeals Tribunal rulings on gherkins and seafood wontons. The first case sought to clarify whether gherkins could be imported duty free as edible vegetables, or subject to a five per cent tariff as vegetable preparations. The second case dealt with the import of frozen dumplings and wontons with a seafood filling. It was unclear whether seafood wontons should be duty free under the heading 'Crustaceans, molluscs, and other aquatic invertebrates, prepared or preserved', or, whether they should be subject to a five per cent duty under the heading 'Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, cannelloni, couscous, whether or not prepared'. This is actually quite a difficult thing to be debating at this time of the day, when across the nation people are starting to think about dinner. The cases were not trivial, however. Incorrect classification of these food items would have real financial impacts for overseas suppliers, for Australian consumers and for the Treasury in lost revenue.

The bill ends the uncertain classification of these foods by adding notes to the act. One note declares that 'pasta includes kneaded noodle dough form into sheets or other specific shapes (for example, rice noodles, wonton skins, Udon noodles and buckwheat noodles), whether or not cooked or stuffed or otherwise prepared'. The other two notes, one concerning vegetables and the other concerning fruits and nuts, allow a distinction between preserved forms of these foods that are immediately edible and preserved forms of these foods that have been treated solely for transportation and are not immediately edible in that form.

Another section of the bill also relates to food. It repeals a section of the act relating to safeguard provisions for tuna and pineapple products included in the Thailand-Australia Free Trade Agreement. The safeguard provisions expired in December 2008, with the consent of both governments, so the applicable section of the act is now redundant.

Finally, the bill repeals schedule 1 of the act, which lists countries and places where non-reciprocal customs duties apply. This content will now be dealt with by regulations, which are easier to update as required. Labor is pleased to support all these changes.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Thank you, Senator O'Neill, I can assure you that Western Australians are still on afternoon tea.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank senators who have contributed to the debate. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.