Customs Tariff Amendment (Incorporation of Proposals)

Current status

This bill became law on Jun 28th, 2023.

Policy area

Budget, tax & economy

What does this bill do?

Australia added a temporary 35% extra import dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. on most goods from Russia or Belarus that arrived between 25 April 2022 and 24 October 2023, unless a listed tariff concessionA rule that lowers or removes customs duty for specified goods, even where the ordinary tariff rate would otherwise apply. still applied.

Why was it introduced?

Several tariffThe law that sets the duty rates applied to goods imported into Australia. changes needed to start quickly and could not wait for a standard amendment bill, including temporary duties on Russian and Belarusian goods, relief for Ukrainian goods, and updated concessions and classifications. This bill writes those earlier tariffThe law that sets the duty rates applied to goods imported into Australia. proposals into law so the higher, lower or duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. rates and technical fixes continue to apply properly.

Broader context

Australia’s customs tariffThe law that sets the duty rates applied to goods imported into Australia. law already set duty rates, but in 2022 the government used tariffThe law that sets the duty rates applied to goods imported into Australia. proposals to move faster, adding a temporary 35 per cent surcharge on most Russian and Belarusian goods, giving Ukrainian goods temporary duty relief, extending duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. treatment for key medical and hygiene products, helping some low-emissions vehicles qualify for free rates, and fixing tariffThe law that sets the duty rates applied to goods imported into Australia. classifications. The 2023 bill was introduced to write those earlier measures and technical corrections into the Customs TariffThe law that sets the duty rates applied to goods imported into Australia. Act so they would keep operating properly, and it became law after Parliament passed it in June 2023.

Key criticism

The main criticism was that the low-emissions vehicle tariff concessionA rule that lowers or removes customs duty for specified goods, even where the ordinary tariff rate would otherwise apply. could add to inflation and impose an unnecessary budget cost, even though the rest of the bill was widely accepted. That concern was raised by Coalition speakers Karen Andrews and, more mildly, Keith Wolahan, but no party represented in the debate opposed the bill overall.

Who supported it?

Clare O'Neil MP introduced this bill. It passed on the voices.

Introduced in House 22 Mar 2023
Passed House 29 Mar 2023
Passed Senate 22 June 2023
Became law 28 June 2023

Did it become law?

Yes

Became law 28 June 2023

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

98 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Australia added a temporary 35% extra import dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. on most goods from Russia or Belarus that arrived between 25 April 2022 and 24 October 2023, unless a listed tariff concessionA rule that lowers or removes customs duty for specified goods, even where the ordinary tariff rate would otherwise apply. still applied.

  2. Goods made in Ukraine got duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. entry into Australia for 12 months from 4 July 2022, except some alcohol, tobacco, fuel and similar products that instead got a reduced rate.

  3. Imported medical and hygiene products can keep entering duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. permanently, and from 1 July 2022 the concession also covers some ingredients and containers used to make medicines and other Chapter 30 health goods.

  4. From 1 July 2022, some electric, hydrogen and plug-in hybrid passenger vehicles imported below the fuel-efficient car limit can be classified so they get a free customs dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. rate.

  5. The Act also fixes tariffThe law that sets the duty rates applied to goods imported into Australia. references so blood-grouping reagents and some herbicides and plant-growth products are classified under the correct headings, including for the Regional Comprehensive Economic Partnership tariffThe law that sets the duty rates applied to goods imported into Australia. rates.

Show source excerpts
  1. insert new section 18A to provide for a temporary increase in customs duties for goods that are the produce or manufacture of Russia or Belarus and that are imported into Australia between 25 April 2022 and 24 October 2023. A temporary duty of 35 per cent will apply to these goods in addition to the general rate of customs duty that would ordinarily apply, except where these goods are eligible for certain tariff concessions or left for direct shipment to Australia before 25 April 2022. This measure incorporates Customs Tariff Proposal (No. 3) 2022 and Customs Tariff Proposal (No. 6) 2022, which were tabled in Parliament on 2 August 2022 and 9 November 2022, respectively. The amendments are contained in Part 1 of Schedule 1 to the Bill;
    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
  2. insert new section 18B to provide a ‘Free’ rate of customs duty for goods that are the produce or manufacture of Ukraine, and a reduced rate for goods classified under a tariff classification in Chapter 22, 24, 27, 29, 34 or 38 of Schedule 3 for which a ‘DC’ tariff rate is listed, and where the goods are imported into Australia during the period of 12 months beginning on 4 July 2022. This measure incorporates Customs Tariff Proposal (No. 4) 2022, which was tabled in Parliament on 2 August 2022. The amendments are contained in Part 2 of Schedule 1 to the Bill;
    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
  3. amend item 57 of Schedule 4 to permanently extend the ‘Free’ rate of customs duty for prescribed medical products and hygiene products capable of use in combatting COVID-19, and to expand the application of that concession starting on 1 July 2022 to such products used in other contexts unrelated to COVID-19, as well as to ingredients and containers for certain medicaments and other goods of Chapter 30 of Schedule 3. This measure incorporates Customs Tariff Proposal (No. 2) 2022, which was tabled in Parliament on 2 August 2022. The amendments are contained in Part 3 of Schedule 1 to the Bill;
    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
  4. The effect of the amendment, with the amendments in items 13 to 16, is to direct some goods previously classified to tariff subheadings 8703.60.19, 8703.70.19, 8703.80.19 and 8703.90.19 to new tariff subheadings 8703.60.12, 8703.70.12, 8703.80.12 and 8703.90.12, respectively. Goods directed to these new tariff subheadings will be eligible for a ‘Free’ rate of customs duty.
    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
  5. The bill will also amend a reference to the tariff heading for blood-grouping reagents in a note to chapter 13 of schedule 3 of the Customs Tariff Act and insert the correct tariff subheading for certain goods that are herbicides, antisprouting products and plant-growth regulators to ensure that these goods are subject to the correct preferential rate of customs duty as agreed under the Regional Comprehensive Economic Partnership Agreement.
    Second reading speech

Broader context for this bill

Australia’s customs tariffThe law that sets the duty rates applied to goods imported into Australia. law already set duty rates, but in 2022 the government used tariffThe law that sets the duty rates applied to goods imported into Australia. proposals to move faster, adding a temporary 35 per cent surcharge on most Russian and Belarusian goods, giving Ukrainian goods temporary duty relief, extending duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. treatment for key medical and hygiene products, helping some low-emissions vehicles qualify for free rates, and fixing tariffThe law that sets the duty rates applied to goods imported into Australia. classifications. The 2023 bill was introduced to write those earlier measures and technical corrections into the Customs TariffThe law that sets the duty rates applied to goods imported into Australia. Act so they would keep operating properly, and it became law after Parliament passed it in June 2023.

  1. 25 Apr 2022

    Extra duty starts on most Russian and Belarusian goods

    A temporary additional 35 per cent customs dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. began applying to most goods from Russia or Belarus imported between 25 April 2022 and 24 October 2023 unless a listed concession still applied.

    Australian Parliament House ↗
  2. 01 July 2022

    Medical goods and some low-emissions vehicles gain duty relief

    From 1 July 2022, imported medical and hygiene products kept duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. entry, some medicine inputs and containers were added, and some electric, hydrogen and plug-in hybrid passenger vehicles could be classified for a free customs dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. rate.

    Australian Parliament House ↗
  3. 04 July 2022

    Ukrainian goods receive temporary duty-freeA customs duty rate of zero. In this bill it applied to categories including many Ukrainian goods and some low-emissions vehicles. entry

    Goods made in Ukraine became duty free for 12 months from 4 July 2022, apart from some excluded products such as alcohol, tobacco and fuel that instead received a reduced rate.

    Australian Parliament House ↗
  4. August and November 2022

    Tariff proposals are tabled to put the changes into effect quickly

    The government tabled five customs tariffThe law that sets the duty rates applied to goods imported into Australia. proposals in Parliament so the rate changes and classification fixes could start before a standard amendment bill was passed.

    Hansard ↗
  5. 22 Mar 2023

    Bill introduced to incorporate the tariffThe law that sets the duty rates applied to goods imported into Australia. proposals into law

    The government introduced the bill to fold the five earlier tariffThe law that sets the duty rates applied to goods imported into Australia. proposals and technical tariffThe law that sets the duty rates applied to goods imported into Australia.-heading corrections into the Customs TariffThe law that sets the duty rates applied to goods imported into Australia. Act 1995.

    Parliamentary timeline ↗
  6. 22 June 2023

    Parliament passes the bill

    Both houses passed the bill in the same form, completing its parliamentary passage and preserving the already operating tariffThe law that sets the duty rates applied to goods imported into Australia. changes in statute.

    Parliamentary timeline ↗
  7. 28 June 2023

    Royal Assent makes the tariffThe law that sets the duty rates applied to goods imported into Australia. changes law

    Royal Assent turned the bill into an Act, locking in the incorporated tariffThe law that sets the duty rates applied to goods imported into Australia. measures and technical corrections under the Customs TariffThe law that sets the duty rates applied to goods imported into Australia. Act 1995.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 22 Mar 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 22 Mar 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 28 Mar 2023

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 28 Mar 2023

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Federation Chamber debate 28 Mar 2023

The bill reached this recorded parliamentary step.

Second reading debate

House second reading agreed 28 Mar 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 29 Mar 2023

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 29 Mar 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 30 Mar 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 30 Mar 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 22 June 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 22 June 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 22 June 2023

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 28 June 2023

The Governor-General gave Royal Assent, turning the bill into an Act.

The main case against this bill

The main criticism was that the low-emissions vehicle tariff concessionA rule that lowers or removes customs duty for specified goods, even where the ordinary tariff rate would otherwise apply. could add to inflation and impose an unnecessary budget cost, even though the rest of the bill was widely accepted. That concern was raised by Coalition speakers Karen Andrews and, more mildly, Keith Wolahan, but no party represented in the debate opposed the bill overall.

Criticism was narrow and focused on the EV tariffThe law that sets the duty rates applied to goods imported into Australia. measure, not the bill’s Russia, Ukraine or medical goods measures.

EV tariff break seen as costly and inflationary

The clearest objection was to the customs dutyA tax charged on imported goods. This bill changed when some goods were charged extra duty, reduced duty or no duty. concession for some low-emissions vehicles, which Coalition speakers argued would be too expensive and could worsen inflation rather than deliver a justified tariffThe law that sets the duty rates applied to goods imported into Australia. change.

Raised by Coalition speakers, especially Karen Andrews, with more limited concern from Keith Wolahan Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

29 Mar 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

22 June 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Clare O'Neil

Australian Labor Party • MP 22 Mar 2023

O'Neil supports the bill and says it brings tariffThe law that sets the duty rates applied to goods imported into Australia. law up to date while locking in measures that help access to hygiene and medical goods, back Ukraine, and encourage cleaner vehicles.

Read in Hansard ↗
Lead supporting voice Supports

Karen Andrews

Liberal Party • MP 28 Mar 2023

Andrews says the coalition will support the bill because its first three tariffThe law that sets the duty rates applied to goods imported into Australia. measures are important and in the national interest, but she rejects the low-emissions vehicle concession as inflationary and too expensive.

Read in Hansard ↗
Lead voice Supports

Anthony Chisholm

Australian Labor Party • Senator 30 Mar 2023

Chisholm supports the bill, saying it updates customs tariffs to back essential hygiene and medical goods, greener technology, and measures responding to Russia's invasion of Ukraine.

Read in Hansard ↗
Lead voice Supports

Libby Coker

Australian Labor Party • MP 28 Mar 2023

Coker supports the bill because it retrospectively confirms tariffThe law that sets the duty rates applied to goods imported into Australia. changes that back Ukraine, protect health supplies, and cut duties on cleaner vehicles.

Read in Hansard ↗

All speeches by bloc

Labor

3 speakers · 4 contributions · 3 support

Coalition

2 speakers · 2 support

  1. Keith Wolahan Wolahan says the coalition supports the bill and will let it pass, mainly because it backs the measures against Russia and in support of Ukraine.
    “The Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 has the coalition's support, but that doesn't mean that we don't have concerns about particular aspects of it. I'd like to talk about those particular parts of the bill, but it will nonetheless go through with coalition support.”

    Liberal Party • MP • 28 Mar 2023

    Read the full speech in Hansard ↗

Full record

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