EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0410029
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.
Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.
Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.
Dean Innis applied for a TCO in respect of certain chiropractic treatment tables on 27 September 2004.
Instrument
TCO No 0410029 was made on 4 January 2005. It declares that those certain chiropractic treatment tables are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that no substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is 3%.
Consultation
Subsection 269K(1) of the Act provides in part that as soon as practicable after accepting a TCO application as a valid application, the CEO must publish a notice in the Gazette which includes an invitation to any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. The CEO did not receive any submissions in response to this invitation.
Commencement
Subsection 269S(1) relevantly provides that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged. TCO No. 0410029 is taken to have come into force on 27 September 2004.
The TCO does not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on a person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration. The rights of importers will be beneficially affected. Under paragraph 126(1)(r) of the Regulations, importers of such goods will be able to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. The TCO does not impose any liabilities on any person.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, was supplemented with Tariff Concession Instrument No. 0410029 to address the issue of providing tariff concessions for specific goods. This instrument allows for a lower rate of customs duty to be applied to goods that meet certain criteria, thereby facilitating more efficient importation processes. The instrument was introduced following an application by Dean Innis for tariff concessions on certain chiropractic treatment tables. Upon review, the Chief Executive Officer of Customs determined that these tables qualified for a reduced duty rate, resulting in the issuance of Tariff Concession Order No. 0410029 on 4 January 2005. The policy objective behind this instrument is to ensure that Australian businesses and consumers benefit from reduced customs duties where appropriate, encouraging trade and economic activity.
Scope and Application
The Customs Act 1901, specifically Part XVA, establishes a framework for the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) which reduce the rate of customs duty for particular goods. An individual or entity can apply for a TCO if the goods in question are not specified in section 269SJ of the Act and if the core criteria are met, as outlined in sections 269C, 269D and 269E. The core criteria are satisfied if the goods are not produced in Australia in the ordinary course of business and there are no substitutable goods available domestically. If the CEO determines that the application meets these criteria, they are required to make a written TCO, specifying the prescribed item from Schedule 4 to the Customs Tariff Act 1995 that applies to the goods. The instrument applies to any person or entity that imports the specified goods into Australia and comes into force on the date the application for the TCO is lodged. The TCO does not affect any pre-existing rights or liabilities of non-Commonwealth persons and provides benefits to importers who can apply for a refund of duty on imports of the specified goods since the effective date of the TCO.
Key Provisions
The main operative sections of this legislation include section 269C, which outlines the core criteria for a Tariff Concession Order (TCO) application, and section 269P, which stipulates that if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets these core criteria, they must make a written order (a TCO). Specifically, section 269F allows a person to apply to the CEO for a TCO in respect of goods, while section 269SJ identifies goods that cannot be subject to a TCO. In this case, TCO No. 0410029 was made on 4 January 2005, declaring that certain chiropractic treatment tables are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, as no substitutable goods were produced in Australia.
The obligations and requirements imposed by the Customs Act 1901 on the parties governed by this legislation include the necessity for the CEO to ensure that a TCO application meets the core criteria, which involves verifying that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The CEO must also publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application, inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission. In this instance, the CEO did not receive any submissions in response to this invitation. Additionally, the TCO does not affect the rights of a person, other than the Commonwealth, as at the date of registration so as to disadvantage that person or impose liabilities on a person in respect of anything done or omitted to be done before the date of registration.
In terms of offences, penalties, or civil/criminal consequences for breach, the legislation does not explicitly outline specific penalties for non-compliance with the provisions of the Customs Act 1901. However, it is worth noting that the CEO has the authority to make a TCO if the application meets the core criteria, and failure to comply with the requirements of the Act may result in the denial of a TCO, which could have financial implications for the applicant and potentially lead to disputes or legal challenges. The rights of importers will be beneficially affected, as they will be able to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. Furthermore, the TCO does not impose any liabilities on any person.