EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0504568
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 Limited applied for a TCO in respect of certain walking beam furnace parts on 20 April 2005.
Instrument
TCO No 0504568 was made on 07 October 2005. It declares that those certain walking beam furnace parts 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. 0504568 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 Tariff Concession Instrument No. 0504568, enacted in 2005, is a measure introduced under the Customs Act 1901 to provide tariff concessions on specific goods. This instrument was made by the Chief Executive Officer of Customs (CEO) in response to an application by Bluescope Steel Limited for a Tariff Concession Order (TCO) in respect of certain walking beam furnace parts. The primary purpose of this legislation is to lower the customs duty on specified goods by declaring them as tariff-free, provided that no substitutable goods are produced in Australia. The instrument was enacted by the CEO following satisfaction that the application met the core criteria, as outlined in the Customs Act 1901, and there were no objections to the concession. The policy objective is to benefit importers of these goods by eliminating customs duty, thereby facilitating trade and potentially reducing costs for businesses reliant on these parts.
Scope and Application
The Tariff Concession Instrument No. 0504568 under the Customs Act 1901 applies to any entity or individual seeking tariff concessions for specific goods, provided the application meets the core criteria outlined in the Act. The scope of the Act encompasses entities such as Bluescope Steel Limited, which in this instance applied for tariff concessions on certain walking beam furnace parts. The application of this legislation is national in reach, as it falls under the Commonwealth's purview. The application process requires the Chief Executive Officer of Customs to verify that no substitutable goods are produced in Australia, which was the case for the mentioned furnace parts, leading to the approval of the concession. The instrument does not affect any pre-existing rights or impose liabilities on non-Commonwealth entities, and it provides benefits to importers who can apply for refunds on duties paid before the concession came into effect. Any exclusions or limitations are governed by the provisions of the Customs Act 1901 and related regulations, which may be further detailed in subordinate instruments.
Key Provisions
The key operative sections of the Tariff Concession Instrument No. 0504568 (Tariff Concession Order or TCO) under the Customs Act 1901 (the Act) include section 269F, which allows a person to apply to the Chief Executive Officer of Customs (the CEO) for a TCO in respect of goods. Section 269C stipulates that the CEO must consider whether the application meets the core criteria, which primarily involve ensuring that no substitutable goods are produced in Australia on the day the application was lodged (section 269P(3)). If the CEO is satisfied that the application meets the criteria, they must issue a written TCO, as provided in section 269P. This particular TCO, No. 0504568, was made on 7 October 2005, declaring that certain walking beam furnace parts are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies, resulting in a free rate of duty for these goods.
The obligations imposed on the parties by this Act primarily involve the application process for a TCO. Under section 269F, the applicant must submit an application to the CEO, ensuring that it is not in respect of goods specified in section 269SJ, which lists goods that cannot be subject to a TCO. The CEO, under section 269K(1), must publish a notice in the Gazette inviting submissions from any person who may have objections to the TCO. This procedural requirement ensures transparency and allows for potential objections to be considered before the TCO is issued. Additionally, under section 269S, the TCO is taken to have come into force on the date the application was lodged, which in this case is 20 April 2005.
The Act also outlines the consequences of breaching the provisions related to TCOs. Although specific offences and penalties are not detailed within the explanatory statement, the failure to comply with the Act’s requirements could potentially lead to legal repercussions. Generally, under the Customs Act 1901, breaches involving the improper application or use of TCOs could result in fines or other penalties as stipulated in the relevant sections of the Act. The maximum penalties for such breaches would depend on the specific nature and severity of the offence, in line with the provisions of the Customs Act 1901 and related regulations. The Act ensures that the rights of individuals and entities other than the Commonwealth are protected, meaning that the TCO does not impose any new liabilities or disadvantage anyone for actions taken before the TCO came into force.