EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0506934
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.
Pacts Paper Unit Trust T/As Alliance Paper Products applied for a TCO in respect of certain thermal imaging paper on 07 June 2005.
Instrument
TCO No 0506934 was made on 14 October 2005. It declares that those certain thermal imaging papers 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. 0506934 is taken to have come into force on 07 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 Commonwealth Parliament, provides a legislative framework for the regulation of customs and excise in Australia. The Act includes provisions for Tariff Concession Orders (TCOs) which allow for reduced customs duty rates on certain goods, provided they meet specific criteria. The Tariff Concession Instrument No. 0506934, introduced to address the application by Pacts Paper Unit Trust T/As Alliance Paper Products for a tariff concession on thermal imaging paper, exemplifies the application of these provisions. The instrument was enacted to ensure that no substitutable goods were produced in Australia at the time of application, thus meeting the core criteria for concession eligibility. The policy objective underpinning this process is to facilitate access to imported goods that are not produced domestically, thereby supporting competitive markets and consumer access to a broader range of products.
Scope and Application
The Tariff Concession Instrument No. 0506934, made under the Customs Act 1901, pertains to an application submitted by Pacts Paper Unit Trust T/As Alliance Paper Products for tariff concessions on certain thermal imaging paper, which was accepted by the Chief Executive Officer of Customs. This instrument applies to the specific goods identified in the application, which, in this case, are certain thermal imaging papers, and aims to provide a lower rate of customs duty for these goods as specified in the Customs Tariff Act 1995. The application process is subject to the core criteria outlined in the Customs Act, specifically under sections 269C, 269B, and 269D, which relate to the production of substitutable goods in Australia and the ordinary course of business. The instrument came into effect on the date the application was lodged, 07 June 2005, and it ensures that no existing rights or liabilities are adversely affected for those parties involved prior to the instrument's effective date. The instrument does not affect the rights of any person other than the Commonwealth and does not impose any new liabilities on any person.
Key Provisions
The key operative sections of the Tariff Concession Instrument No. 0506934 under the Customs Act 1901 (sections 269C, 269P(3), and 269S(1)) allow for the making of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). These sections establish the criteria for making such orders and the effective date of the order once it is made. Specifically, section 269C requires that a TCO application meets core criteria if no substitutable goods were produced in Australia on the day the application was lodged. Section 269P(3) mandates that if the CEO is satisfied that the application meets these criteria, they must issue a written order declaring the goods to which a specified item of Schedule 4 to the Customs Tariff Act 1995 applies. Section 269S(1) provides that a TCO is taken to have come into force on the day the application for the TCO was lodged.
The Act imposes several obligations on the parties involved. Firstly, the CEO must review any application for a TCO to ensure it meets the core criteria outlined in section 269C. If the application satisfies these criteria, the CEO is required to make a written order under section 269P(3). Additionally, as per section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any interested parties once an application is accepted as valid. This notice should include an invitation for submissions regarding why a TCO should not be made. While no submissions were received in this case, the process ensures transparency and allows for potential objections.
Failure to comply with the provisions of the Customs Act 1901 and the associated regulations could result in civil or criminal consequences. For example, if an entity falsely claims that no substitutable goods were produced in Australia to obtain a TCO, this could be considered a breach of the Act. Such a breach could lead to penalties, including fines, under the Customs Act. Additionally, the importation of goods without adhering to the conditions set by a valid TCO could result in the imposition of duty, which could be pursued through civil action. The specific penalties are not detailed in the explanatory statement but would generally align with the general penalties for breaches of the Customs Act.
The Tariff Concession Instrument No. 0506934 provides a clear framework for the application and issuance of TCOs, ensuring that eligible goods receive the specified duty concessions. The Act's provisions require the CEO to rigorously assess applications against the established criteria and to provide a transparent process for public input. While the explanatory statement does not detail specific penalties for non-compliance, the overarching legal framework suggests that penalties could include fines and potential civil actions for incorrect duty payments.