EXPLANATORY STATEMENT
Tariff Concession Instrument No.0503992
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.
Worsley Alumina Pty Ltd applied for a TCO in respect of certain marine liquids transfer unloading arms on 8 April 2005.
Instrument
TCO No 0503992 was made on 17 June 2005. It declares that those certain marine liquids transfer unloading arms 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 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. 0503992 is taken to have come into force on 8 April 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 was enacted to regulate the customs process in Australia, providing a framework for the collection of customs duty and the management of imported goods. The Act was introduced to address the need for a structured and efficient system to govern the importation of goods, ensuring compliance with customs regulations and facilitating international trade. Part XVA of the Act specifically pertains to the establishment of a scheme for Tariff Concession Orders (TCOs), which allows for the application of reduced customs duty rates on certain goods. The policy objective of this provision is to support Australian industries by lowering the cost of importing specific goods, thereby enhancing competitiveness without imposing additional liabilities on importers or affecting existing rights.
The Tariff Concession Instrument No. 0503992, introduced in 2005, exemplifies this legislative intent by granting tariff concessions for certain marine liquids transfer unloading arms. This instrument was developed in response to an application from Worsley Alumina Pty Ltd, and following the Chief Executive Officer of Customs' satisfaction that the application met the core criteria outlined in the Customs Act 1901, a TCO was issued. This order effectively reduced the duty on the specified goods from 5% to free, effective from the date of the application, 8 April 2005. The enactment of this TCO demonstrates the practical application of the legislative framework to benefit specific industries by lowering import costs, in line with the overarching policy objective of promoting economic efficiency and supporting Australian businesses.
Scope and Application
The Tariff Concession Instrument No. 0503992, made under the Customs Act 1901, applies specifically to the category of goods known as certain marine liquids transfer unloading arms, as applied for by Worsley Alumina Pty Ltd. This instrument was implemented to provide a concession on customs duty rates for these particular goods, effective from 8 April 2005. The Customs Act 1901 facilitates the process whereby the Chief Executive Officer of Customs can issue Tariff Concession Orders (TCOs) to lower the duty on goods that meet certain criteria, in this case, ensuring that no substitutable goods are produced in Australia at the time of application. The geographic scope of this Act is national, as it applies across Australia and is administered at the federal level. The Act does not impose any liabilities or disadvantage any person other than the Commonwealth and does not affect any rights as at the date of registration concerning actions prior to this date. The rights of importers are positively impacted, allowing them to apply for refunds of duties paid on these goods since the effective date of the TCO.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0503992 include sections 269F, 269C, 269P, and 269S. Section 269F of the Customs Act 1901 allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of specific goods. If the application meets the core criteria set out in section 269C, the CEO must make a TCO. Section 269P(3) mandates that if the CEO is satisfied that the application meets these criteria, they must issue a written order declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. In this case, the TCO was made for certain marine liquids transfer unloading arms, setting their duty rate at free, whereas the general rate is 5%.
The Act imposes several obligations on the parties involved. The CEO of Customs is required to assess applications against the core criteria specified in section 269C. This involves determining whether substitutable goods were produced in Australia on the day the application was lodged. If the CEO is satisfied that no such goods were produced, they must issue a TCO as per section 269P(3). Additionally, under section 269K(1), the CEO must publish a notice in the Gazette inviting any interested parties to submit any objections to the making of the TCO. This ensures transparency and allows for any potential concerns to be raised before the order is issued.
Failure to comply with the provisions of the Customs Act 1901 and the associated regulations can lead to legal consequences. While the Explanatory Statement does not explicitly detail specific offences or penalties, breaches of customs regulations generally result in penalties as outlined in the relevant legislation. These can include fines and, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, as well as any additional provisions in the Customs Act 1901 or related instruments.
In the context of this TCO, there are no reported submissions or objections, indicating that the process was likely straightforward and uncontested. The TCO does not impose any liabilities on persons other than the Commonwealth, nor does it disadvantage anyone who had rights as of the date of registration. Instead, it provides a benefit to importers by allowing them to apply for a refund of duty on goods imported since the TCO came into force on 8 April 2005, as per paragraph 126(1)(r) of the Regulations.