EXPLANATORY STATEMENT
Tariff Concession Instrument No.0504198
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.
Bluescope Steel Ltd applied for a TCO in respect of certain walking beam furnace transfer frame longitudinal or cross beams on 7 April 2005.
Instrument
TCO No 0504198 was made on 17 June 2005. It declares that those certain walking beam furnace transfer frame longitudinal or cross beams 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. 0504198 is taken to have come into force on 7 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 Tariff Concession Instrument No. 0504198, enacted in 2005, is an instrument under the Customs Act 1901 designed to address the specific needs of industries seeking tariff concessions on certain imported goods. This instrument was introduced to provide relief to businesses by allowing for a lower rate of customs duty on particular goods, thereby promoting efficiency and competitiveness within the industry. The instrument was enacted by the Commonwealth Parliament and aims to facilitate the application process for tariff concessions by ensuring that the necessary criteria are met before any concessions are granted. This legislative measure seeks to streamline the application process and ensure that only those goods that genuinely do not have substitutable Australian-produced alternatives receive tariff concessions, thereby protecting domestic industries where appropriate.
Scope and Application
The Tariff Concession Instrument No. 0504198 under the Customs Act 1901 applies to goods specifically identified in the instrument, namely certain walking beam furnace transfer frame longitudinal or cross beams. The instrument was made in response to an application by Bluescope Steel Ltd on 7 April 2005, and it was effective from the same date. The instrument was created to provide tariff concessions on these goods, effectively reducing the duty rate from the general 5% to free, provided that no substitutable goods were produced in Australia. The instrument applies nationally and its effects are limited to the goods specified within the instrument, with no broader impact on other goods or industries. The instrument also ensures that no pre-existing rights of individuals or entities are adversely affected, and it allows for the refund of duties paid on these goods imported since the effective date. The instrument was made without any objections, as no submissions were lodged against the application. The scope of the instrument is further defined by the Customs Tariff Act 1995, which specifies the tariff item applicable to the goods in question.
Key Provisions
The main provisions of Tariff Concession Instrument No. 0504198 under the Customs Act 1901 (section 269F) allow for the application by an individual or entity to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO). This instrument, TCO No. 0504198, was made on 17 June 2005 and applies to certain walking beam furnace transfer frame longitudinal or cross beams. According to section 269P(3), the CEO must issue a written order if satisfied that the application meets the core criteria, which includes ensuring no substitutable goods are produced in Australia on the date the application was lodged (section 269C). This particular TCO declares that the specified goods are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, resulting in a duty-free rate for these goods, down from the general rate of 5%.
The obligations imposed by this Act on parties or entities include the requirement for the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid (subsection 269K(1)). This notice must invite any person who believes the TCO should not be made to lodge a submission with the CEO. Additionally, under section 269S, a TCO is taken to have come into force on the date the application for the TCO was lodged. In this instance, TCO No. 0504198 is effective from 7 April 2005. Importers of the specified goods can apply for a refund of duty on goods imported since the TCO's effective date (paragraph 126(1)(r) of the Regulations). Importantly, the TCO does not affect the rights of any person (other than the Commonwealth) as at the date of registration, nor does it impose any liabilities on any person.
For breaches of the provisions under the Customs Act 1901, the consequences can be severe. Although specific offences, penalties, or consequences for breaches of TCO provisions are not detailed in the explanatory statement, general penalties under the Customs Act for non-compliance with customs regulations can include fines and imprisonment. The maximum penalties vary depending on the nature and severity of the breach but can be substantial, reflecting the seriousness with which the Australian government treats customs and tariff regulation compliance.