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CUSTOMS TARIFF AMENDMENT (TOBACCO CONTENT) BILL 2008

                               2008




  THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                HOUSE OF REPRESENTATIVES




CUSTOMS TARIFF AMENDMENT (TOBACCO CONTENT) BILL 2008




                EXPLANATORY MEMORANDUM




     (Circulated by authority of the Minister for Home Affairs,
                 the Honourable Bob Debus MP)
         CUSTOMS TARIFF AMENDMENT (TOBACCO CONTENT) BILL 2008

OUTLINE
The purpose of this Bill is to make a minor amendment to the Customs Tariff Act
1995 (the Customs Tariff).

The Bill will insert a definition of `tobacco content' into subsection 3(1) of the
Customs Tariff. This amendment will clarify the existing references to 'tobacco
content' found within the Customs Tariff, confirming that the non-stick
excise-equivalent customs duty on tobacco and tobacco products is based on the
total weight of the goods, as intended.



FINANCIAL IMPACT STATEMENT
The Bill has no financial impact.




Page 2   Customs Tariff Amendment (Tobacco Content) Bill 2008
     CUSTOMS TARIFF AMENDMENT (TOBACCO CONTENT) BILL 2008

     NOTES ON CLAUSES

     Clause 1 ­ Short title
1.   This clause provides for the Bill, when enacted, to be cited as the Customs Tariff
     Amendment (Tobacco Content) Act 2008.

     Clause 2 ­ Commencement
2.   This clause provides that the Act will commence on the day on which the Act
     receives the Royal Assent.

     Clause 3 ­ Schedule(s)
3.   This clause is the formal enabling provision for the Schedule to the Bill, providing
     that each Act specified in a Schedule is amended in accordance with the applicable
     items of the Schedule. In this Bill, the Customs Tariff is being amended.

4.   The clause also provides that the other items of the Schedules have effect according
     to their terms. This is a standard enabling clause for transitional, savings and
     application items in amending legislation.




                                          Customs Tariff Amendment (Tobacco Content) Bill 2008   Page 3
     SCHEDULE 1 ­ Amendment

     Customs Tariff Act 1995

     Item 1 ­ Subsection 3(1)
1.   This item defines `tobacco content' in subsection 3(1) of the Customs Tariff as
     including `any thing (including moisture) added to the tobacco leaf during
     manufacturing or processing'. This includes sugar, flavour, additives or any thing
     else added to the tobacco leaf during manufacturing or processing.

2.   This amendment will clarify the existing references to 'tobacco content' found within
     the Customs Tariff, confirming that the excise-equivalent customs duty payable on
     tobacco and tobacco products is based on the total weight of the goods.

     Item 2 ­ Application
3.   This item provides that the amendment contained in item 1 of the Schedule to the Bill
     applies to goods imported into Australia on or after 1 November 1999 and also to
     goods that were imported before that date but on which the time for working out the
     rate of import duty on those goods had not occurred before that date. For example,
     this application provision will apply to goods that were warehoused on importation
     before 1 November 1999 and not entered into home consumption until on or after
     1 November 1999.

4.   The term `tobacco content' was first introduced into the Customs Tariff on
     1 November 1999 by Customs Tariff Amendment Act (No. 1) 2000. Therefore the
     measure contained in this Bill will also apply from that date.




     Page 4   Customs Tariff Amendment (Tobacco Content) Bill 2008