EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0411819
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.
Consolidated Veneers Pty Ltd applied for a TCO in respect of certain wooden veneer edging on 5 November 2004.
Instrument
TCO No 0411819 was made on 14 January 2005. It declares that certain wooden veneer edging 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 initiation.
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. 0411819 is taken to have come into force on 5 November 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 Tariff Concession Instrument No. 0411819 was enacted in 2005 under the Customs Act 1901 to address the specific needs of Australian businesses by providing tariff concessions for certain imported goods. This legislative instrument was introduced to facilitate easier and more cost-effective importation of goods by reducing the customs duty rate for specified items, thereby encouraging trade and economic growth. The instrument was created following an application by Consolidated Veneers Pty Ltd for a tariff concession order (TCO) for certain wooden veneer edging, leading to a lower rate of customs duty on these goods. The policy objective of this instrument is to ensure that Australian businesses have access to competitively priced imported goods that are not produced domestically, thereby supporting the competitive landscape and consumer choice within Australia. The instrument was enacted by the Chief Executive Officer of Customs, in accordance with the provisions set out in the Customs Act 1901.
Scope and Application
The Customs Act 1901, under which Tariff Concession Orders (TCOs) may be made, applies to individuals or entities that seek to import goods into Australia and wish to benefit from lower customs duty rates. The Act permits the Chief Executive Officer of Customs to make a TCO if the application meets the core criteria, which includes ensuring that no substitutable goods are produced in Australia in the ordinary course of business. The geographic reach of this legislation is national, affecting imports across all states and territories. The Act also extends its application through subordinate instruments, such as the Customs Tariff Act 1995, which specifies the reduced duty rates applicable to the goods covered by a TCO. Notably, the Act explicitly excludes certain goods from being the subject of a TCO, as outlined in section 269SJ. In the case of Consolidated Veneers Pty Ltd, a TCO was made for certain wooden veneer edging, reducing the duty rate from the general rate of 5% to 3%, effective from the date the application was lodged. This Act ensures that the rights of importers are protected and beneficially affected by such concessions.
Key Provisions
The key operative sections of Tariff Concession Instrument No. 0411819 (Tariff Concession Order No. 0411819) are sections 269C, 269P, and 269SJ of the Customs Act 1901 (the Act). Section 269C specifies the core criteria that a Tariff Concession Order (TCO) application must meet, which includes the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P mandates that if the Chief Executive Officer of Customs (the CEO) is satisfied that the application meets the core criteria, they must make a written order declaring the goods to which the TCO applies. Section 269SJ outlines the goods that cannot be subject to a TCO. The TCO applies to certain wooden veneer edging, reducing the duty rate from 5% to 3%.
The Act imposes specific obligations on the parties involved. The CEO must accept a valid TCO application and, if the criteria are met, make a written order. The applicant, in this case, Consolidated Veneers Pty Ltd, must ensure that their application meets the criteria, including demonstrating that no substitutable goods were produced in Australia. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from interested parties, although no submissions were received in this instance.
Failure to comply with the provisions of the Customs Act 1901 may result in various consequences. While the explanatory statement does not detail specific offences or penalties related to breaches of the TCO provisions, breaches of the Customs Act generally can lead to penalties. For example, under section 245 of the Customs Act, a person who contravenes an order made under the Act may be subject to a penalty. The maximum penalty for such an offence can include fines and, in some cases, imprisonment. However, the precise penalties for breaches related to Tariff Concession Orders would be determined by the specific circumstances and the relevant sections of the Act.
Overall, the Tariff Concession Order No. 0411819 provides specific tariff concessions for certain wooden veneer edging, lowering the duty rate from 5% to 3%, subject to the conditions outlined in the Customs Act 1901. The obligations for the CEO and the applicant are clearly defined, and while the explanatory statement does not specify penalties for breaches, general penalties under the Customs Act may apply.