EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0507365
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.
Tape Pacific Pty Ltd applied for a TCO in respect of certain self adhesive tape 16 June 2005.
Instrument
TCO No 0507365 was made on 2 September 2005. It declares that those certain self adhesive tapes 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. 0507365 is taken to have come into force on 16 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, facilitates the application of tariff concessions through Tariff Concession Orders (TCOs), allowing for reduced customs duties on certain goods. This legislative framework was introduced to address the gap in providing competitive advantages to industries that cannot domestically produce substitutable goods. The Tariff Concession Instrument No. 0507365, issued under this Act, was designed to respond to an application from Tape Pacific Pty Ltd for tariff concessions on specific self-adhesive tapes, ensuring that the importation of these goods attracts a zero duty rate instead of the general 5% rate. The instrument was enacted to meet the core criteria established by the Customs Act, confirming that no substitutable goods were produced in Australia at the time of application. The policy objective of this instrument aligns with broader economic strategies to support local industries and reduce import costs for specific products, thereby enhancing competitiveness without disadvantaging existing rights or imposing new liabilities on stakeholders.
Scope and Application
The Tariff Concession Instrument No. 0507365 pertains to the Customs Act 1901 and applies to the process by which Tariff Concession Orders (TCOs) are made by the Chief Executive Officer of Customs (CEO) to facilitate lower rates of customs duty on specified goods. This mechanism is available to any person who meets the criteria outlined in the Act, particularly those who can demonstrate that the goods in question are not substitutable by products manufactured in Australia and that the application complies with the core criteria established under section 269C. The geographic and jurisdictional reach of the Act is Commonwealth-wide, with the CEO having the authority to make decisions that affect the entire nation. The Act does not impose any liabilities on individuals or entities and does not disadvantage any person’s rights accrued before the date of the TCO registration. Furthermore, the Act allows for the extension or restriction of its application through subordinate instruments, ensuring flexibility in addressing specific trade-related needs. The TCO in question, which pertains to certain self-adhesive tapes, is effective from the date the application was lodged, providing immediate benefit to importers who can now claim refunds for duties paid on these goods since that date.
Key Provisions
The Tariff Concession Order No. 0507365, made under section 269F of the Customs Act 1901, applies a concessional rate of customs duty to certain self-adhesive tapes. This instrument, effective from 16 June 2005, grants a tariff concession to Tape Pacific Pty Ltd, allowing these goods to be imported duty-free. Under section 269P(3) of the Act, this concession applies because the Chief Executive Officer of Customs (CEO) was satisfied that no substitutable goods were produced in Australia, thereby meeting the core criteria for a tariff concession order.
The Customs Act 1901 imposes several obligations on the CEO in the context of tariff concession orders. Firstly, under section 269F, the CEO must assess applications for tariff concessions and decide whether they meet the core criteria specified in section 269C. Section 269B further clarifies that an application meets these criteria if no substitutable goods were produced in Australia in the ordinary course of business at the time of application. Additionally, under section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from interested parties before making a decision. This ensures transparency and provides an opportunity for stakeholders to voice their opinions.
There are no explicit provisions detailing offences, penalties, or civil/criminal consequences for breaches of the Tariff Concession Order No. 0507365 within the text. However, the general legislative framework under which the Customs Act 1901 operates does include provisions for penalties related to breaches of customs regulations. For example, under section 219 of the Customs Act 1901, penalties can be imposed for offences such as making a false statement or failing to comply with customs requirements, with maximum penalties including fines and imprisonment. While the specific consequences for breaching the terms of this tariff concession order are not detailed, the overarching penalties for customs law violations provide a legal framework for enforcing compliance.