EXPLANATORY STATEMENT
Tariff Concession Instrument No.0501454
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.
Croftminster Pty Ltd applied for a TCO in respect of certain PVC ornamental figures on 7 February 2005.
Instrument
TCO No 0501454 was made on 29 April 2005. It declares that those certain PVC ornamental figures 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 free.
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. 0501454 is taken to have come into force on 7 February 2005.
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. 0501454 was enacted in 2005 under the Customs Act 1901 to address the issue of providing tariff concessions for specific goods imported into Australia. This instrument was introduced to ensure that certain goods, in this case, PVC ornamental figures, receive a reduced rate of customs duty, thereby encouraging their importation and benefiting consumers. The instrument was enacted by the Chief Executive Officer of Customs (CEO) in accordance with section 269F of the Act, following an application by Croftminster Pty Ltd on 7 February 2005. The primary policy objective of this legislation is to facilitate the importation of goods that are not produced domestically, thus supporting trade and economic activities within Australia. The instrument was officially published in the Gazette with an invitation for submissions, none of which were received, and it came into force on the date the application was lodged.
Scope and Application
The Tariff Concession Instrument No. 0501454, under the Customs Act 1901, pertains to the application and administration of Tariff Concession Orders (TCOs) within the Commonwealth of Australia. This legislation applies to entities or individuals who apply for a TCO, specifically in cases where the goods in question are not produced in Australia and do not have substitutable goods manufactured domestically. The primary objective of this Act is to facilitate the importation of goods by reducing or eliminating customs duty for specified items, thereby promoting trade and economic efficiency. The Act’s reach is national, encompassing all jurisdictions within Australia, and it operates in accordance with the criteria and conditions outlined in the Customs Act 1901 and the Customs Tariff Act 1995. There are exclusions where certain goods, as specified in section 269SJ, are ineligible for a TCO. The application of the Act may also be extended or modified through subordinate instruments, allowing for flexibility in addressing emerging trade needs and scenarios.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0501454 (F2005L01027) are found in sections 269C, 269F, and 269P of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. If the application is not for goods specified in section 269SJ, the CEO must determine if it meets the core criteria in section 269C, 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. If the CEO is satisfied that the core criteria are met, section 269P(3) mandates that a TCO be made, declaring the goods to which a specified item of Schedule 4 to the Customs Tariff Act 1995 applies.
The obligations and requirements imposed by the Act on parties include the necessity for applicants to ensure their applications meet the specified criteria. Specifically, applicants must confirm that no substitutable goods were produced in Australia on the day the application was lodged. Additionally, 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. The CEO, in this case, did not receive any submissions in response to the published notice, thus facilitating the progression of the application.
For breaches of the conditions or requirements set out in the Customs Act 1901, the legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences within the explanatory statement. However, the Act generally provides for enforcement actions under sections that deal with broader customs and border protection regulations, which could include fines or other penalties for non-compliance with customs duties and related regulations. It is important to refer to the broader Customs Act 1901 and associated regulations for detailed information on penalties applicable to breaches in the context of customs duties and tariff concession orders.