EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0412707
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.
Bowlstyle Pty Ltd applied for a TCO in respect of certain flat bowling felts on 22 November 2004.
Instrument
TCO No 0412707 was made on 4 February 2005. It declares that those certain flat bowling felts are goods to which item 50A 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 10%. The rate of duty for the goods subject to the TCO is 0%.
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. 0412707 is taken to have come into force on 22 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 establish a comprehensive framework for the regulation of customs and excise in Australia. This Act was introduced to address the need for a structured and effective system to manage the import and export of goods, ensuring that the necessary revenue is collected and that trade regulations are enforced. The Customs Act is administered by the Parliament of Australia, with the objective of facilitating legitimate trade while protecting the economic interests of the nation. One of the mechanisms provided by the Act is the ability to issue Tariff Concession Orders (TCOs), which allow for the reduction or exemption of customs duty on certain goods under specific conditions. This legislative approach helps to foster competitive markets and can support industries by reducing the cost of imported raw materials or components.
Scope and Application
The Tariff Concession Instrument No. 0412707, made under Part XVA of the Customs Act 1901, applies specifically to certain flat bowling felts, as determined by the Chief Executive Officer of Customs (CEO) in response to an application by Bowlstyle Pty Ltd. This instrument grants tariff concessions for these goods, reducing the applicable customs duty rate from 10% to 0%. The concessions are applicable from 22 November 2004, the date the application was lodged, and are contingent upon the CEO being satisfied that no substitutable goods are produced in Australia in the ordinary course of business. The instrument extends to the national jurisdiction, governed by the Commonwealth. There are no exclusions or exemptions outlined in the text, and it does not disadvantage any person by affecting rights as at the date of registration. The rights of importers are beneficially affected as they can apply for a refund of duty on goods imported since the commencement date of the TCO. Any subordinate instruments that further extend or restrict the application of this TCO would need to be referenced in accordance with the Customs Act 1901.
Key Provisions
The primary operative sections of Tariff Concession Instrument No. 0412707, made under the Customs Act 1901, declare certain flat bowling felts as goods subject to a Tariff Concession Order (TCO) (Section 269P(3)). This instrument was made on 4 February 2005, following an application by Bowlstyle Pty Ltd on 22 November 2004. Section 269C of the Act specifies that a TCO application meets the core criteria if no substitutable goods were produced in Australia on the day the application was lodged. In this case, the Chief Executive Officer of Customs (CEO) determined that no substitutable goods were produced domestically, thus allowing for a 0% duty rate on these specific goods, down from the general rate of 10% (Schedule 4, item 50A of the Customs Tariff Act 1995).
The obligations imposed by this legislation require the CEO to ensure that any TCO application meets the criteria outlined in Section 269C, and to publish a notice in the Gazette inviting submissions if the application is deemed valid (Section 269K(1)). In this instance, the CEO made the TCO after no submissions opposing the application were received. Additionally, Section 269S(1) mandates that a TCO is effective from the date the application was lodged, which for TCO No. 0412707, is 22 November 2004. Importers are entitled to apply for a refund of duty paid on these goods since the TCO's effective date (Regulation 126(1)(r)).
Failure to comply with the provisions of the Customs Act 1901 may result in civil or criminal penalties, although the specific offences, penalties, or consequences for breaching the TCO are not detailed in the explanatory statement. Generally, under Australian law, breaches of customs regulations can lead to penalties such as fines or imprisonment, depending on the severity of the offence. The exact penalties would need to be referenced within the broader context of the Customs Act and related regulations.