Clare O'Neil (Hotham, Australian Labor Party, Minister for Home Affairs) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022 will amend the Customs Tariff Act 1995 (the Customs Tariff Act) to implement the preferential rate of customs duty for goods determined to be United Kingdom originating. These amendments will ensure that Australia fulfils its obligations as a signatory to the Australia-United Kingdom Free Trade Agreement and is prepared for the agreement to enter into force.

This bill will insert a new schedule of duty rates into the Customs Tariff Act. Schedule 15 will contain the preferential rates of customs duty for imported goods that satisfy the rules of origin that are set out in the agreement. Australia has committed to reduce the duty rate on most originating goods to 'free' over the years following the entry into force of the agreement. Excise equivalent goods, which are certain fuel, alcohol, tobacco and petroleum products, that are originating under the agreement will continue to have excise equivalent customs duties applied so they receive the same treatment as domestically produced equivalents.

These bills will also provide for the suspension of preferential tariffs for United Kingdom originating goods classified to certain subheadings of chapters 72 and 73 of schedule 3 of the Customs Tariff Act, which deal with iron and steel goods. When activated, the customs duty rate applied to these goods would be the five per cent general rate of customs duty which currently applies. The suspension will be activated when the United Kingdom global safeguard applies to Australian steel products. The United Kingdom global steel safeguard is currently in place and has been extended to 30 June 2024. The suspension, therefore, will apply from entry into force of the agreement.

The suspension of preference will end from the date that the United Kingdom safeguard ends or no longer applies to Australian steel. From this date the preferential duty rate applied to certain goods from the United Kingdom will be reduced in accordance with the rate that applies under Schedule 15.

Finally, this bill amends certain tariff concessions to maintain their scope and ensure that commitments made under the agreement are honoured.

The amendments in this bill complement the amendments in the Customs Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022, which will amend the Customs Act 1901.

I commend this bill to the House.

Debate adjourned.