EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0506933
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.
W W Wedderburn Pty Ltd applied for a TCO in respect of certain Dial Scales on 7 June 2005.
Instrument
TCO No 0506933 was made on 21 October 2005. It declares that those certain Dial Scales 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. 0506933 is taken to have come into force on 7 June 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, enacted by the Australian Parliament, provides a framework for the regulation of customs duties and tariffs. This Act allows the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) that can reduce the customs duty on certain imported goods. The Tariff Concession Instrument No. 0506933, enacted in 2005, addresses a specific need to provide tariff concessions for particular Dial Scales imported by W W Wedderburn Pty Ltd. The policy objective of the Act, as evidenced in its provisions, is to ensure that Australian industries are protected while also facilitating trade by offering concessions where appropriate, thus balancing the interests of domestic producers and importers. The CEO of Customs, in this case, determined that no substitutable goods were produced in Australia, satisfying the core criteria for the concession, and therefore, the duty on these Dial Scales was reduced to zero.
Scope and Application
The Customs Act 1901, specifically under Part XVA, provides a framework for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). The Act applies to any person or entity that seeks to import goods subject to a TCO, allowing for a lower rate of customs duty on these specified goods. This scheme is designed to benefit importers by reducing the duty on goods for which no substitutable goods are produced in Australia in the ordinary course of business, as determined by the CEO based on the core criteria outlined in section 269C of the Act. The geographic reach of this legislation is national, as it pertains to the importation of goods into Australia. The application of a TCO, such as TCO No. 0506933 for certain Dial Scales, is subject to the conditions that no substitutable goods are produced in Australia and that the application meets the criteria set out in the Act. The CEO's decision to issue a TCO is made on a case-by-case basis, and once issued, it provides tariff concessions effective from the date the application was lodged. Any exclusions or exemptions are determined by the CEO, considering factors such as the production of substitutable goods in Australia or the specific goods listed in section 269SJ of the Act, which cannot be subject to a TCO. The application of the TCO does not retroactively affect any rights or impose liabilities for actions taken before the date of registration.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0506933, made under the Customs Act 1901, concern the establishment and effects of a Tariff Concession Order (TCO). Section 269F of the Act allows for the application for a TCO by a person in respect of goods, provided that certain criteria are met (subsection 269C). If the Chief Executive Officer of Customs (CEO) is satisfied that the application meets these criteria, they must make a written order, or TCO, specifying the goods and the applicable customs duty rate (subsection 269P(3)). In this particular case, the TCO applies to certain Dial Scales and reduces the customs duty rate from 5% to 0% (section 269S(1)).
The obligations imposed by this Act on the parties and entities it governs are primarily on the CEO of Customs and the applicant. The CEO must accept and process TCO applications in accordance with the requirements of the Act, including assessing whether the application meets the core criteria (subsection 269C). Once an application is accepted, the CEO is also required to publish a notice in the Gazette, inviting any interested parties to lodge a submission if they believe the TCO should not be made (subsection 269K(1)). The applicant, on the other hand, must provide all necessary information and evidence to support their application for a TCO, ensuring it meets the core criteria outlined in the Act.
There are no explicit offences or penalties outlined in the Tariff Concession Instrument No. 0506933 itself. However, the Customs Act 1901 does provide for various offences and penalties related to customs duty and the importation of goods. For instance, section 228 of the Customs Act stipulates that if a person knowingly or recklessly makes a false statement or representation in relation to the importation of goods, they may be subject to criminal penalties, including fines and imprisonment. Similarly, section 231 of the Act penalises the importation of dutiable goods without paying the appropriate duty or the attempted evasion of duty. These provisions underscore the importance of compliance with the customs laws and the potential consequences of non-compliance.