EXPLANATORY STATEMENT
Tariff Concession Instrument No.0503077
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.
Amber Technology Ltd applied for a TCO in respect of certain broadcast transmission vehicles on 11 March 2005.
Instrument
TCO No 0503077 was made on 20 May 2005. It declares that those certain broadcast transmission vehicles 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 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.0503077 is taken to have come into force on 11 March 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 Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the regulation of customs and excise in Australia. It includes provisions for Tariff Concession Orders (TCOs), which reduce the customs duty payable on specified goods. The Tariff Concession Instrument No. 0503077, enacted in 2005, addresses the problem of ensuring that Australian importers can access goods at a lower rate of customs duty when no suitable substitute is produced in Australia. This instrument was introduced to provide tariff relief on certain broadcast transmission vehicles applied for by Amber Technology Ltd, effective from the date of the application, 11 March 2005. The policy objective is to facilitate the import of goods that cannot be substituted by Australian-produced alternatives, thereby promoting competitive markets and potentially lowering costs for consumers.
Scope and Application
The Customs Act 1901, specifically under Part XVA, establishes a framework for Tariff Concession Orders (TCOs) which can be applied for by any person and are subject to approval by the Chief Executive Officer of Customs (CEO). These orders provide for a lower rate of customs duty on specified goods, provided that certain criteria are met, including the absence of substitutable goods produced in Australia. The legislation applies to entities and individuals who import goods and seeks to facilitate trade by reducing the duty on certain items. Geographically, the application of this Act is national, as it pertains to the Commonwealth of Australia and its customs regulations. The Act does not apply to goods specified in section 269SJ, which are ineligible for TCOs. The scope of the Act can be extended or restricted through subordinate instruments, as noted by the publication of TCO No.0503077, which grants a 0% duty rate on certain broadcast transmission vehicles, effective from the date of application on 11 March 2005. This TCO was made without any objections from the public, ensuring a smooth transition for affected importers.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0503077 (F2005L01260) under the Customs Act 1901 concern the establishment and application of Tariff Concession Orders (TCOs) to certain broadcast transmission vehicles. Section 269F allows an application for a TCO, while section 269C specifies that an application meets the core criteria if no substitutable goods were produced in Australia on the day the application was lodged. Section 269P(3) mandates that if the Chief Executive Officer (CEO) of Customs is satisfied that the application meets the core criteria, they must issue a written TCO order, as was done in this case. This particular TCO, No. 0503077, applies item 50 of Schedule 4 to the Customs Tariff Act 1995, resulting in a reduced duty rate of 0% on the specified broadcast transmission vehicles, down from the general rate of 5%.
The obligations imposed by the Act on the parties involved are primarily centred around the application and approval process for TCOs. The CEO must determine if the application for a TCO meets the core criteria (section 269C), ensuring that no substitutable goods were produced in Australia on the application date. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any interested parties (subsection 269K(1)). In this case, the CEO did not receive any submissions opposing the TCO. The Act also stipulates that the TCO does not affect any rights or impose liabilities on persons other than the Commonwealth for actions taken before the TCO was registered.
The Tariff Concession Instrument No. 0503077 itself does not explicitly outline offences, penalties, or consequences for non-compliance with the TCO provisions. However, breaches of the Customs Act 1901, under which these TCOs operate, may result in various penalties. For example, offences under the Customs Act can attract civil or criminal penalties, fines, and imprisonment, depending on the severity of the breach. The exact penalties would be determined by the specific provisions of the Customs Act that are contravened, not by the TCO itself. The rights of importers are beneficially affected as they can apply for a refund of duty on goods imported since the TCO came into force, as per paragraph 126(1)(r) of the Regulations.