EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0413255
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.
Rick Mcleans Designer Shower Screens (Aust) Pty Ltd applied for a TCO in respect of certain hot and cold filtered water dispensers on 3 December 2004.
Instrument
TCO No 0413255 was made on 25 February 2005. It declares that those certain hot and cold filtered water dispensers 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 5%. 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. 0413255 is taken to have come into force on 3 December 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. 0413255 was enacted in 2005 under the Customs Act 1901 to provide tariff concessions for certain hot and cold filtered water dispensers. This instrument addresses the gap in the tariff structure by allowing for a reduced rate of customs duty on specified goods, provided that no substitutable goods are produced in Australia in the ordinary course of business. The instrument was made by the Chief Executive Officer of Customs, who is empowered under section 269F of the Act to make Tariff Concession Orders. The policy objective is to support Australian businesses by ensuring that certain goods receive tariff concessions where appropriate, thereby promoting competitiveness and potentially lowering costs for importers. The instrument came into force on the date the application was lodged, 3 December 2004, and does not disadvantage any person by imposing liabilities for actions taken prior to its registration.
Scope and Application
The Customs Act 1901 applies to individuals, businesses, and entities involved in the importation of goods into Australia. Specifically, the Act applies to the application and processing of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The geographic scope of this legislation is national, as it pertains to the regulation of customs duties across all states and territories in Australia. A TCO can be applied for by any person seeking to import goods that meet the criteria outlined in the Act, provided they are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. The application process requires that the goods in question are not substitutable by goods produced in Australia in the ordinary course of business. If the CEO determines that the application meets the core criteria, they are mandated to issue a written order, effectively applying a zero percent duty rate to the specified goods. This particular TCO, number 0413255, was made for certain hot and cold filtered water dispensers, reducing their duty rate from 5% to 0%. The commencement date of the TCO is aligned with the date the application was lodged, 3 December 2004, and it does not retroactively affect the rights or impose liabilities on any person except the Commonwealth.
Key Provisions
The Tariff Concession Order No. 0413255, made under section 269F of the Customs Act 1901, pertains to certain hot and cold filtered water dispensers. As per section 269P(3), if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets the core criteria, they must make a written order (a TCO) that declares the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. This particular TCO, made on 25 February 2005, declares that the specified dispensers are goods to which item 50A of Schedule 4 applies, resulting in a duty rate of 0% instead of the general rate of 5%.
The Act imposes certain obligations and requirements on the parties involved. An applicant, such as Rick McLeans Designer Shower Screens (Aust) Pty Ltd, must submit an application to the CEO for a TCO in respect of goods. The CEO must then assess whether the application meets the core criteria, as outlined in sections 269B and 269C. If satisfied, the CEO is required to make a written order (a TCO) in accordance with section 269P(3). Additionally, as per subsection 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made.
Failure to comply with the requirements of the Customs Act 1901 may result in civil and criminal consequences. For example, section 152 of the Act outlines various offences related to false or misleading statements, fraudulent conduct, and other breaches. Penalties for such offences can range from fines to imprisonment, depending on the severity of the offence. Furthermore, section 149 of the Act states that any person who contravenes the Act may be liable for a civil penalty of up to 10,000 penalty units ($1.7 million) for a corporation and 1,700 penalty units ($300,000) for an individual. It is essential for all parties involved to adhere to the provisions of the Customs Act 1901 to avoid any potential penalties or consequences.