EXPLANATORY STATEMENT
Tariff Concession Instrument No.0412879
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.
Australian Blow Moulders Pty Ltd applied for a TCO in respect of certain blow moulders on 30 November 2004.
Instrument
TCO No 0412879 was made on 11 February 2005. It declares that those certain blow moulders 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 No0412879 is taken to have come into force on 30 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, enacted by the Australian Parliament, provides for the administration of customs duties and other import charges. In 2005, the Customs Act 1901 was amended to introduce the scheme for Tariff Concession Orders (TCOs), aimed at addressing the problem of ensuring fair trade practices by providing tariff concessions for specific goods that are not produced in Australia. This allows for a lower rate of customs duty on these goods, incentivising their import and use. The Tariff Concession Instrument No. 0412879, made under this Act, is an example of how the scheme is applied. Australian Blow Moulders Pty Ltd applied for, and was granted, a TCO for certain blow moulders, reducing the duty rate from the general 5% to 3%. This legislative framework is designed to ensure that Australian consumers and businesses have access to competitively priced goods, while also supporting the efficient operation of trade in Australia.
Scope and Application
The Tariff Concession Order No. 0412879 under the Customs Act 1901 applies to Australian Blow Moulders Pty Ltd, specifically to certain blow moulders which are goods imported into Australia. The Act facilitates the application for tariff concessions by the Chief Executive Officer of Customs, allowing for a reduced rate of customs duty for these goods if certain conditions are met. The geographic reach of this legislation is national, operating within the framework of Australian customs law. The Act applies to the import of these goods and the associated duty concessions. The exclusions under the Act include goods specified in section 269SJ, which cannot be subject to a Tariff Concession Order. The application process requires that the goods for which the concession is sought are not substitutable by any goods produced in Australia in the ordinary course of business, as per sections 269C and 269D. The order, once made, applies to the specific goods listed, in this case, item 50 of Schedule 4 to the Customs Tariff Act 1995, reducing the duty rate from 5% to 3%. The commencement of this Tariff Concession Order is effective from the date the application was lodged, 30 November 2004, with no retrospective effect on the rights or liabilities of any person other than the Commonwealth. The process also includes public consultation as per subsection 269K(1) of the Act, although in this instance, no submissions were received.
Key Provisions
The Tariff Concession Instrument No. 0412879 under the Customs Act 1901 (section 269F) allows the Chief Executive Officer (CEO) of Customs to grant tariff concessions on certain goods, provided they meet specific criteria. This instrument was applied to certain blow moulders by Australian Blow Moulders Pty Ltd on 30 November 2004. Pursuant to section 269C, the CEO was satisfied that no substitutable goods were produced in Australia, thus fulfilling the core criteria for the concession. This resulted in the CEO making a written order (section 269P(3)) on 11 February 2005, reducing the duty rate on these goods from the general rate of 5% to a concessional rate of 3%.
The obligations imposed by this Act on the parties include the requirement for applicants to ensure that their applications meet the core criteria (section 269C). The CEO must then decide whether to grant the concession based on these criteria and, if satisfied, must make a written order declaring the concession (section 269P(3)). Additionally, under subsection 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any interested parties, although in this case, no submissions were received.
There are no specific offences or penalties outlined in this legislation for failing to comply with the requirements of the Tariff Concession Instrument. However, any breach of related provisions in the Customs Act 1901 or Customs Regulations 1996 could result in civil or criminal penalties. For instance, providing false or misleading information in the application process could lead to fines or imprisonment under the relevant sections of the Customs Act. The precise penalties for such breaches would depend on the severity of the offence and would be determined according to the relevant sections of the Act.