EXPLANATORY STATEMENT
Tariff Concession Instrument No.0502242
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.
G W Colla Trust and V M Colla Trust applied for a TCO in respect of certain egg grading and packing lines on 18 February 2005.
Instrument
TCO No 0502242 was made on 29 April 2005. It declares that those certain egg grading and packing lines 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 No. 0502242 is taken to have come into force on 18 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. 0502242, enacted under the Customs Act 1901, addresses the issue of providing tariff concessions for certain goods imported into Australia. This instrument was introduced to cater to specific circumstances where the goods in question were not produced in Australia in the ordinary course of business, thereby qualifying them for a lower rate of customs duty as outlined in the Act. The instrument was created in response to an application by G W Colla Trust and V M Colla Trust for tariff concessions on certain egg grading and packing lines, which were granted following a determination by the Chief Executive Officer of Customs that no substitutable goods were produced in Australia at the time of the application. The policy objective here is to facilitate the import of necessary goods by reducing their customs duty, thereby potentially lowering costs for businesses and consumers.
This instrument was made by the Chief Executive Officer of Customs, as mandated by section 269F of the Customs Act 1901, following the submission of an application under section 269C that met the core criteria. The instrument was published in the Gazette with an invitation for submissions, though none were received. The concession came into effect on 18 February 2005, the date the application was lodged, and it benefits importers by allowing them to apply for a refund of duty on goods imported since that date. Importantly, it does not disadvantage or impose liabilities on any person other than the Commonwealth for actions taken before its registration.
Scope and Application
The Tariff Concession Instrument No. 0502242, issued under the Customs Act 1901, applies to specific egg grading and packing lines, providing a lower rate of customs duty for these goods, as declared in item 50 of Schedule 4 to the Customs Tariff Act 1995. This legislation is pertinent to entities and individuals involved in the importation of these goods, ensuring they benefit from a reduced duty rate of 3% instead of the general rate of 5%. The instrument was made in response to an application by G W Colla Trust and V M Colla Trust, and it came into effect on the date of the application, 18 February 2005. The application process involves the Chief Executive Officer of Customs determining whether the application meets the core criteria, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The instrument does not affect any existing rights or impose liabilities on persons other than the Commonwealth, thereby safeguarding the interests of importers who can apply for duty refunds on goods imported since the TCO came into force.
Key Provisions
The Tariff Concession Order (TCO) No. 0502242 under the Customs Act 1901 applies to certain egg grading and packing lines, as detailed in section 269P(3). The instrument was made on 29 April 2005, following an application by G W Colla Trust and V M Colla Trust on 18 February 2005. According to section 269C, the Chief Executive Officer of Customs (CEO) determined that the application met the core criteria, which requires that no substitutable goods were produced in Australia on the date the application was lodged. Consequently, the CEO issued a written order declaring that these specific goods are subject to a lower customs duty rate of 3%, as specified in item 50 of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations and requirements on the parties involved. Firstly, under section 269F, a person must apply to the CEO for a TCO in respect of goods. The CEO is then mandated to decide if the application meets the core criteria, which includes ensuring that no substitutable goods were produced in Australia on the application date, as outlined in section 269C. If the CEO is satisfied that the application meets these criteria, they must make a written order as per section 269P(3). Additionally, under section 269K(1), the CEO must publish a notice in the Gazette inviting any person who believes the TCO should not be made to lodge a submission. In this instance, no submissions were received, allowing the CEO to proceed with the order.
Breaching the conditions set out in the Customs Act 1901 or failing to comply with the requirements for a TCO could lead to various consequences. While the specific penalties for non-compliance are not detailed in the provided text, it is important to note that the Act provides for both civil and criminal penalties for breaches. These could include fines, imprisonment, or other sanctions as prescribed by the Act. The exact penalties would depend on the nature and severity of the breach, and any associated regulations or subsidiary legislation. The TCO itself does not impose any liabilities on any person, as it is designed to benefit importers by reducing their customs duty obligations.