EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0508246
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.
Apex Associates Pty Ltd applied for a TCO in respect of certain Fork Lift Parts on 24 June 2005.
Instrument
TCO No 0508246 was made on 9 September 2005. It declares that those certain Fork Lift Parts 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. 0508246 is taken to have come into force on 24 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. 0508246 was enacted in 2005 under the Customs Act 1901 to address the issue of providing tariff concessions for certain imported goods, thereby encouraging trade and reducing costs for businesses. This instrument was introduced to streamline the process of applying for tariff concessions, ensuring that businesses could more easily access lower rates of customs duty for specific goods, provided no substitutable goods were produced domestically. The Tariff Concession Orders (TCOs) are issued by the Chief Executive Officer of Customs, who assesses applications against core criteria set out in the Act, such as the absence of substitutable goods in Australia. The policy objective of this legislative instrument is to facilitate smoother import processes for businesses by reducing duty rates on eligible goods, thereby promoting economic efficiency and supporting Australian industries by allowing them to compete more effectively with imported goods.
Scope and Application
The Tariff Concession Instrument No. 0508246 under the Customs Act 1901 applies to goods specified in the instrument, namely certain Fork Lift Parts, and the entities or individuals importing these goods into Australia. The Act facilitates tariff concessions for such goods by reducing or eliminating customs duty rates under specific conditions. The application of the Act is national, operating within the Commonwealth of Australia and affecting all importers of the specified goods. The Act does not apply to goods listed in section 269SJ of the Customs Act 1901, which prohibits certain goods from being subject to a tariff concession order. Additionally, the Act extends its application through subordinate instruments, such as the Customs Tariff Act 1995, which specifies the tariff rates for goods. This instrument ensures that the general rate of duty on the specified Fork Lift Parts is reduced to 0%, effective from the date the application was lodged, 24 June 2005.
Key Provisions
The Tariff Concession Instrument No. 0508246 under the Customs Act 1901 (section 269F) outlines the process by which a Tariff Concession Order (TCO) may be applied for and granted in respect of certain goods. This instrument specifically pertains to Fork Lift Parts, where the application was submitted by Apex Associates Pty Ltd on 24 June 2005. The instrument declares that these Fork Lift Parts are subject to a lower customs duty rate of 0%, as opposed to the general rate of 5%, due to the absence of substitutable goods produced in Australia (section 269C).
Parties and entities governed by this legislation have specific obligations and requirements. The Chief Executive Officer of Customs (CEO) must assess whether the application for a TCO meets the core criteria, particularly ensuring that no substitutable goods were produced in Australia at the time the application was lodged (section 269C). If the CEO is satisfied that the application meets these criteria, they are mandated to issue a written TCO (section 269P(3)). Furthermore, the CEO must publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be granted (subsection 269K(1)). In this instance, no submissions were received in response to the published notice.
Failure to comply with the requirements of the Customs Act 1901 may result in various legal consequences. While the explanatory statement does not explicitly enumerate offences or penalties, breaches of the Act could potentially lead to civil or criminal liabilities. The Act itself may impose penalties for non-compliance, although specific penalties are not detailed in this explanatory statement. It is essential for parties to adhere to the statutory obligations to avoid any adverse legal ramifications.
Additionally, the TCO does not affect the rights of any person other than the Commonwealth as of the date of registration, ensuring that it does not disadvantage any individual or impose liabilities for actions taken prior to the registration date (subsection 269S(1)). Importers of the goods in question will benefit from this TCO by potentially applying for a refund of duty on goods imported since the date the TCO is deemed to have come into force (paragraph 126(1)(r) of the Regulations).