EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0411927
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.
Coates Brothers Aust P/L applied for a TCO in respect of certain printing ink on 10 November 2004.
Instrument
TCO No 0411927 was made on 14 January 2005. It declares that certain printing ink 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. 0411927 is taken to have come into force on 10 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 Customs Act 1901 was enacted to provide a comprehensive framework for the regulation of customs and excise duties in Australia. One of the significant instruments under this Act is Tariff Concession Orders (TCOs), which provide relief by lowering customs duties on certain goods. Tariff Concession Instrument No. 0411927, made on 14 January 2005, is an example of such an order that was introduced to address the specific need for reduced customs duties on certain printing inks, as applied by Coates Brothers Aust P/L on 10 November 2004. The enacting body responsible for these orders is the Chief Executive Officer of Customs, who, after ensuring that the application meets the core criteria, makes the order to reduce the duty on specified goods. This instrument aims to facilitate trade by lowering the financial burden on importers and ensuring that no pre-existing rights or liabilities are adversely affected.
Scope and Application
The Tariff Concession Instrument No. 0411927 applies to specific goods, in this case certain printing inks, and is intended to provide a lower rate of customs duty as stipulated in the Customs Act 1901. The instrument was made by the Chief Executive Officer of Customs in response to an application by Coates Brothers Aust P/L, and it is applicable to the goods identified from the date the application was lodged. The Act applies to any person who imports or intends to import the specified goods into Australia, granting them the benefit of the lower customs duty rate provided the goods are not produced domestically in a substitutable form. The geographical scope of the Act is national, covering all states and territories within Australia. The Act does not specify any exclusions or exemptions for this particular instrument, although certain goods are precluded from tariff concession under section 269SJ of the Act. The Act’s application may be extended or restricted through subordinate instruments, such as regulations and orders, although no such instruments are referenced in this specific context.
Key Provisions
The key provisions of Tariff Concession Instrument No. 0411927 under the Customs Act 1901 (section 269F) involve the application and approval process for a Tariff Concession Order (TCO) that allows for a reduced customs duty rate on certain goods. Coates Brothers Aust P/L applied for a TCO for certain printing ink on 10 November 2004. The CEO of Customs (section 269C) must consider whether the application meets the core criteria, which include the absence of substitutable goods produced in Australia (section 269D, 269E). If these criteria are met, the CEO is required to issue a written TCO (section 269P(3)). This TCO (item 50 of Schedule 4 to the Tariff) stipulates that the printing ink in question will be subject to a 3% duty rate instead of the general 5% rate.
The obligations imposed by the Customs Act 1901 on parties applying for a TCO include ensuring that the application is not for goods specified in section 269SJ, which are ineligible for TCOs. Additionally, the CEO is mandated to publish a notice in the Gazette (section 269K(1)) inviting submissions from any person who believes the TCO should not proceed, although in this case, no such submissions were received. The TCO itself does not disadvantage or impose liabilities on any person other than the Commonwealth (section 269S(1)).
Should there be a breach of any conditions or requirements set forth by the Customs Act 1901 or the associated regulations, the consequences can be significant. While specific offences and penalties are not detailed in the provided text, it is likely that violations could lead to the imposition of fines or other penalties as prescribed by the Act or relevant regulations. The severity of these penalties would depend on the nature and extent of the breach, but they could potentially include substantial financial penalties as well as other legal repercussions.