Overview

The Tariff Concession Instrument No. 0502572 was enacted in 2005 under the Customs Act 1901 to address the need for tariff concessions on specific goods, in this case certain plate mill spindles and/or carriers, thereby providing a lower rate of customs duty. This instrument was introduced to facilitate the importation of these goods by Bluescope Steel Limited, aligning with the legislative framework that allows for Tariff Concession Orders (TCOs) to be made by the Chief Executive Officer of Customs, provided certain criteria are met. The policy objective is to support Australian industries by potentially lowering the cost of imported goods that have no substitutable Australian-made alternatives, thus fostering competitive trade practices. The instrument was enacted by the Parliament of Australia and aims to provide tariff relief where appropriate, ensuring that Australian businesses can access necessary goods at reduced rates without imposing liabilities on any person. This legislative approach is designed to balance the interests of importers and domestic producers, ultimately contributing to the economic efficiency and competitiveness of the Australian market.

Scope and Application

The Tariff Concession Instrument No. 0502572 applies to Bluescope Steel Limited, specifically in relation to certain plate mill spindles and/or carriers, which are subject to the Customs Act 1901. This Act operates at the Commonwealth level, and its application is governed by the provisions of the Customs Act 1901 and the Customs Tariff Act 1995. The instrument was issued under section 269F of the Customs Act, whereby the Chief Executive Officer of Customs (the CEO) made the decision to grant the tariff concession, following an application by Bluescope Steel Limited. The application was considered under the core criteria specified in section 269C, which requires that no substitutable goods were produced in Australia in the ordinary course of business. This instrument alters the rate of customs duty applicable to the specified goods, reducing it from the general rate of 5% to a concessional rate of 3%. The instrument does not affect the rights of any person other than the Commonwealth, as stipulated in subsection 269S(1) of the Customs Act, and does not impose any liabilities on any person. It came into force on the date of the application, 25 February 2005. The CEO published a notice in the Gazette inviting submissions from any person who might have reasons to oppose the concession, though no submissions were received. The instrument benefits importers by allowing them to apply for a refund of duty on goods imported since the effective date of the tariff concession, as per paragraph 126(1)(r) of the Regulations.

Key Provisions

The Customs Act 1901 sets out the scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer (CEO) of Customs (sections 269C, 269F, 269K, 269S, 269SJ). When an application for a TCO is made under section 269F, the CEO must assess whether the application meets the core criteria (section 269C). These criteria require that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (sections 269B, 269D, 269E). If the CEO is satisfied that the application meets these criteria, they must make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (section 269P). In the case of TCO No. 0502572, the CEO was satisfied that the application for certain plate mill spindles and carriers met the core criteria, and thus the TCO was made on 6 May 2005 (section 269P(3)). The obligations under this legislation primarily rest on the CEO of Customs, who must assess TCO applications against the specified criteria and make an order if the criteria are met (section 269C). The CEO must also publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting any person who believes there are reasons why the TCO should not be made to lodge a submission with the CEO (subsection 269K(1)). If the CEO receives no submissions in response to this invitation, they must proceed with the order. In this case, the CEO did not receive any submissions in response to the notice published in the Gazette (subsection 269K(1)). Breaching the requirements of this legislation can have civil or criminal consequences. However, the explanatory statement does not detail specific offences, penalties, or consequences for breaches. The explanatory statement focuses on the process of making TCOs and the criteria that must be satisfied for such orders to be validly made. The TCO itself does not impose any liabilities on any person and 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 in respect of anything done or omitted to be done before the date of registration (subsection 269S(1)).