Part 1
Amendments to Excise and Excise-equivalent Duties Table

Clause 3 states the purpose of Part 1.

Clause 4 identifies the principal document Part 1 amends: the Excise and Excise-equivalent Duties Table. A copy of the Table as from time to time amended, modified, or revoked and replaced on or after 1 January 2010 is, as required by section 76C of the Act, published at the following Internet site: http://www.customs.govt.nz/library/The+Working+Tariff+Document/Related+Pages/ .

Clause 5 amends Part A (which relates to goods manufactured in New Zealand) and Part B (which relates to imported goods) to—

• increase by 14% the duties on loose (roll-your-own cigarette and pipe) tobacco and on higher-weight manufactured cigarettes, to align those duties by weight with the duties on lower-weight manufactured cigarettes; and

• increase by 10% (in the first of 3 cumulative increases of 10%) the duties on all tobacco products (including the duties on loose tobacco and on higher-weight manufactured cigarettes, after those duties have been aligned with the duties on lower-weight manufactured cigarettes).

Excise item number 99.60.39C (cigars, cheroots, cigarillos, and cigarettes containing tobacco substitutes) is re-enacted unchanged to enable replacement of all 4 excise item numbers under heading 99.60. It will continue to be rated “Free”.

Part 2
Amendments to Customs and Excise Act 1996

Clause 6 states the purpose of Part 2, which amends the Customs and Excise Act 1996 so that it provides for the second and third of the 3 cumulative 10% increases in existing rates of duties on tobacco products. Those increases are to come into force on 1 January 2011 and on 1 January 2012 respectively.

Clause 7 identifies the principal Act Part 2 amends: the Customs and Excise Act 1996. A reference in this Part to a new section or section is a reference to a new section or section of that Act.

Clause 8(1) inserts new section 79AA. New section 79AA requires rates of duties on tobacco products, as those rates exist immediately before 1 January 2011 and immediately before 1 January 2012, to be increased by 10% of those existing rates and—

• in an Excise and Excise-equivalent Duties Table (Tobacco Products Indexation and Separate 10% Increase) Amendment Order 2010, or 2011 (as the case requires) that—

  • is made under section 79(1), and indexes those existing rates (having regard to movements in the CPI (excluding credit services)) under section 79(2) to (4); and

  • includes that 10% increase as required by new section 79AA(1); and

  • comes into force on 1 January 2011 or, as the case requires, 1 January 2012; or

• if no such indexation order is or is to be made so as to come into force on 1 January 2011 or, as the case requires, 1 January 2012, by an Excise and Excise-equivalent Duties Table (Tobacco Products 10% Increase) Amendment Order 2010, or 2011 (as the case requires) that—

  • is made under new section 79AA(2); and

  • comes into force on 1 January 2011 or, as the case requires, 1 January 2012.

Clause 8(2) amends consequentially sections 76C(2)(c), 76D, and 76G(2) and (4)(b) (which relate to orders amending the Table) by inserting references to orders under new section 79AA(2).

An order made under section 79(1), and that includes a separate 10% increase as required by new section 79AA(1), will expire at the time stated in section 80(1A)(a) or (b) unless it is confirmed by Act of Parliament passed before that time.

Clause 9 inserts new section 80(1)(ba) so that a 10% increase order under new section 79AA(2) (which is not also an indexation order) will also expire at the time stated in section 80(1A)(a) or (b) unless confirmed by Act of Parliament passed before that time.

Clause 10 repeals new section 79AA on the close of 1 January 2012, and new section 80(1)(ba) on the close of 31 December 2013.