EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0506245
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.
Bottcher Australia Pty Limited applied for a TCO in respect of certain printers blankets on 26 May 2005.
Instrument
TCO No 0506245 was made on 07 October 2005. It declares that those certain printers blankets 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 10%. 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. 0506245 is taken to have come into force on 26 May 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, as amended, includes a scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs. Enacted by the Australian Parliament, this legislation aims to provide relief from customs duty for specific goods, thereby addressing a gap in the tariff structure by offering reduced duty rates for certain imported items. The Tariff Concession Instrument No. 0506245, made on 7 October 2005, specifically targets certain printers blankets, providing them with a duty-free status as no substitutable goods were produced in Australia at the time of the application. The policy objective is to ensure that the importation of these goods is facilitated without incurring the usual customs duty, thereby promoting efficiency and cost-effectiveness in the relevant industry.
Scope and Application
The Tariff Concession Instrument No. 0506245, made under Part XVA of the Customs Act 1901, applies specifically to entities or individuals who have applied for a Tariff Concession Order (TCO) concerning certain printers' blankets. The Act allows the Chief Executive Officer of Customs to issue TCOs that lower the customs duty on specified goods if certain criteria are met. This legislation targets those involved in the importation of printers' blankets by providing them with a concessional rate of duty, thus facilitating trade and potentially lowering costs for businesses importing these goods. The application of the Act is national, as it falls under the Commonwealth's jurisdiction. However, it does not apply to goods specified in section 269SJ of the Act, which outlines those goods that cannot be subject to a TCO. Additionally, the Act does not impose any new liabilities or disadvantage existing rights of any person other than the Commonwealth, ensuring that the TCO benefits importers by potentially allowing them to apply for a refund of duty on goods imported since the TCO's effective date.
Key Provisions
The Tariff Concession Instrument No. 0506245, which was issued under the Customs Act 1901 (the Act), pertains to Tariff Concession Orders (TCOs) (s 269F). A TCO is essentially a written order made by the Chief Executive Officer (CEO) of Customs that provides for a lower rate of customs duty on certain goods. This particular instrument, made on 7 October 2005, concerns certain printers' blankets, which are now subject to a free rate of duty as opposed to the general rate of 10% (s 269P(3)).
Under the Act, a person can apply for a TCO if the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act and that it meets the core criteria (s 269C). The core criteria require that on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (s 269C). The definitions of terms such as "goods produced in Australia," "ordinary course of business," and "substitutable goods" are provided in sections 269D, 269E, and 269F respectively. If the CEO is satisfied that the application meets the core criteria, they must make a TCO (s 269C).
There are obligations and requirements imposed by the Act on the parties involved. The CEO must publish a notice in the Gazette, inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission (s 269K(1)). In this case, the CEO did not receive any submissions in response to this invitation. Additionally, a TCO is taken to have come into force on the day on which the application for the TCO was lodged (s 269S(1)). In this instance, the TCO No. 0506245 is taken to have come into force on 26 May 2005.
Any breach of the provisions of the Customs Act 1901 may result in various offences, penalties, or civil/criminal consequences. However, the explanatory statement does not provide specific information on the penalties for breaching the Act or the TCO. It is essential for the parties involved to adhere to the requirements and obligations outlined in the Act to avoid any potential legal repercussions.