Regulation 1 of the Excise Regulations (Statutory Rules 1905 No. 65) provides as follows:

1. The Collector may, on the application of a manufacturer, permit the following excisable goods and goods liable to duties of Customs, viz: Glucose, Spirits, Glycerine, Liquorice, Sugar, Spice, Starch, Starch Flour, Cigarette Paper, Cork Manufactures for Tips, Flavouring Essences, Essential Oils, Tags, Saccharin, Dried Orange Peel, Fruit Juice, Vaseline, Petroleum Jelly, and any other articles that the Minister by Gazette notice allows, to be delivered free of duty for use in the manufacture of Tobacco, Cigars, Cigarettes, and Snuff.

The provision as to Dried Orange Peel shall be deemed to date from the twenty-second of February, 1904.

Some debate took place in the Senate on the 13th instant in relation to this regulation and in the course of the debate the Minister for Customs undertook to obtain my opinion as to whether the regulation is intra vires.

The papers have now been forwarded to me for my opinion on the question.

Section 24 of the Excise Act 1901 enacts that:

Excisable goods and goods liable to duties of Customs may in prescribed cases and subject to the prescribed conditions be delivered free of duty or subject to such lower duty as may be prescribed for use in the manufacture of excisable goods.

This section, read in conjunction with the definition of the words 'prescribed' and 'this Act' and section 164, gives ample power to make the regulation in question. I am of opinion therefore that the regulation is intra vires.

I would point out that the Customs Act 1901, section 89, contains a provision which operates in a similar manner as regards warehoused goods for use in manufacturing in bond and that elaborate regulations have been made to carry the provision into effect.

[Vol. 7, p. 257]