EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0507311
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.
Beaver Sales Pty Ltd applied for a TCO in respect of certain Wire Rope Thimbles on 10 June 2005.
Instrument
TCO No 0507311 was made on 2 September 2005. It declares that those certain Wire Rope Thimbles 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. 0507311 is taken to have come into force on 10 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 Tariff Concession Instrument No. 0507311, enacted in 2005, is an instrument under the Customs Act 1901, designed to facilitate tariff concessions for specific goods. This instrument was introduced to address the need for a streamlined process to provide tariff relief for goods that are not produced in Australia or are not substitutable by domestic products. The enacting body responsible for this instrument is the Chief Executive Officer of Customs, who is empowered under the Customs Act 1901 to make Tariff Concession Orders (TCOs) upon satisfying certain core criteria. The primary policy objective is to encourage the import of certain goods by reducing or eliminating customs duty, thereby potentially lowering costs for businesses and consumers and promoting competition. The instrument, which came into force on 10 June 2005, benefits importers by potentially allowing them to apply for duty refunds on goods imported since the TCO was deemed to be in effect.
Scope and Application
The Tariff Concession Instrument No. 0507311, made under the Customs Act 1901, applies to individuals and entities, such as Beaver Sales Pty Ltd, seeking tariff concessions for specified goods entering Australia. The application of this Instrument pertains to goods for which a Tariff Concession Order (TCO) is sought to alter the rate of customs duty. The Act specifically targets goods for which the Chief Executive Officer of Customs (CEO) can make a TCO, provided that no substitutable goods are produced in Australia in the ordinary course of business, and the application meets the criteria set out in section 269C of the Act. The Instrument reduces the duty rate on certain Wire Rope Thimbles from 5% to 0%, illustrating its application to specific industries and types of goods. The geographic reach of this legislation is national, as it applies across Australia under the Commonwealth jurisdiction. There are exclusions in place, particularly concerning goods specified in section 269SJ of the Act, which cannot be subject to a TCO. The scope of the Act can be extended or restricted through subordinate instruments, such as the Regulations under the Customs Act, which provide further details on the administration and enforcement of tariff concessions.
Key Provisions
The Tariff Concession Instrument No. 0507311, as outlined in the Customs Act 1901, provides a framework for the application and granting of Tariff Concession Orders (TCOs). A TCO can be applied for by any person under section 269F (1) of the Act. The Chief Executive Officer of Customs (CEO) will consider the application and must decide whether it meets the core criteria specified in section 269C of the Act. The core criteria are satisfied if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. In this context, "substitutable goods" means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use to which the goods the subject of the application can be put. If the CEO is satisfied that the application meets the criteria, they must make a written order, declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies (subsection 269P(3)).
The obligations imposed by the Act on the parties involved are primarily on the CEO, who must ensure that any application for a TCO is assessed against the core criteria outlined in section 269C. The CEO must also publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made, as per subsection 269K(1) of the Act. This notice must be published as soon as practicable after accepting the TCO application as valid. In the case of TCO No. 0507311, the CEO did not receive any submissions in response to the published notice.
Any breach of the provisions outlined in the Customs Act 1901 and the associated regulations could result in penalties. While the specific penalties are not detailed in the explanatory statement, the Act generally provides for both civil and criminal penalties for non-compliance with its provisions. Civil penalties may include fines and other monetary penalties, while criminal penalties could result in imprisonment, depending on the severity of the breach. The maximum penalties are not specified in the provided text, but they would be determined according to the relevant sections of the Act and any applicable regulations.