EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0504565
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 Hot Strip Mill on 20 April 2005.
Instrument
TCO No 0504565 was made on 2 September 2005. It declares that those certain Walking Beam Furnace Hot Strip Mill 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. 0504565 is taken to have come into force on 20 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 amended by the introduction of Tariff Concession Instrument No. 0504565 in 2005, which sought to address the gap in tariff concessions for certain imported goods, specifically those identified in the instrument. Enacted by the Parliament of Australia, the instrument aimed to provide relief by lowering the rate of customs duty on specified goods, in this instance certain Walking Beam Furnace Hot Strip Mill, from the general rate of 5% to 0%. This initiative was driven by the policy objective of facilitating trade and ensuring that Australian businesses have access to competitive imports, thereby supporting economic efficiency and growth. The instrument was registered on 2 September 2005, and it was backdated to the date of the application, 20 April 2005, ensuring that importers could potentially claim refunds for duties paid on the goods imported since that date. The instrument did not affect any pre-existing rights or impose new liabilities on entities other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0504565 under the Customs Act 1901 applies to the specific goods identified as certain Walking Beam Furnace Hot Strip Mill, as declared by the Chief Executive Officer of Customs following an application by Bluescope Steel Ltd. This instrument pertains to entities and individuals involved in the importation of these goods, offering them a tariff concession that reduces the customs duty from the general rate of 5% to 0%. The geographic reach of this legislation is nationwide, encompassing all states and territories within Australia, and it is administered under the Commonwealth's authority. The Act specifies that the concession does not extend to goods listed in section 269SJ, which are ineligible for such concessions. Additionally, the Act may be further refined or expanded through subordinate instruments, which could include regulations or further orders issued under its authority.
Key Provisions
The primary operative sections of this legislation, specifically section 269F of the Customs Act 1901, allow a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. This is contingent on the CEO being satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which are those goods that cannot be subject to a TCO. The CEO must then decide whether the application meets the core criteria, as outlined in sections 269C, 269B and 269D of the Act. If the application is approved, a written order is issued, specifying that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations and requirements on the parties involved. The CEO must publish a notice in the Gazette, inviting any interested parties to submit objections or submissions regarding the proposed TCO as soon as practicable after accepting a valid application, as per subsection 269K(1) of the Act. Additionally, the CEO is obligated to assess whether the application meets the core criteria and make a decision accordingly, based on the provisions outlined in sections 269C, 269B and 269D. Once a TCO is issued, it comes into force on the date the application for the TCO was lodged, as per subsection 269S(1) of the Act. The rights of importers will be positively affected, and they can apply for a refund of duty on goods imported since the date the TCO is deemed to have come into force, under paragraph 126(1)(r) of the Regulations.
Any breaches of the requirements and obligations outlined in the Customs Act 1901 may result in civil or criminal consequences. However, the explanatory statement does not provide specific details regarding offences, penalties, or maximum penalties for breach. It is important to note that the rights of a person, other than the Commonwealth, will not be adversely affected or impose any liabilities on a person for actions taken or omitted prior to the date of registration, as per the provisions in the Act.