EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0508494
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.
Barrick Australia Limited applied for a TCO in respect of certain ore conveyor systems on 01 July 2005.
Instrument
TCO No 0508494 was made on 07 October 2005. It declares that those certain ore conveyor systems 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. 0508494 is taken to have come into force on 01 July 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. 0508494, enacted under the Customs Act 1901, was introduced to address the need for tariff concessions for specific goods where no substitutable products were produced domestically. This instrument enables the Chief Executive Officer of Customs to grant tariff concessions on certain goods, thereby reducing the customs duty rate. The policy objective is to facilitate the import of goods that are not domestically produced, thereby potentially lowering costs and increasing market access for such goods. The Tariff Concession Order (TCO) No. 0508494, made on 7 October 2005, pertains to certain ore conveyor systems and was made effective from 1 July 2005. The TCO exempts these specific goods from the general customs duty rate of 5%, thereby providing a tariff concession for these imports. This instrument ensures that the rights of importers are protected and may benefit from duty refunds on imports made since the TCO's effective date.
Scope and Application
The Tariff Concession Instrument No. 0508494, under the Customs Act 1901, applies to specific goods for which a Tariff Concession Order (TCO) has been approved. This legislation allows for a lower rate of customs duty on certain goods, provided that they meet the criteria set out in the Act, such as not having substitutable goods produced in Australia. The CEO of Customs must make a written order if satisfied that the application meets these core criteria. This particular instrument pertains to ore conveyor systems, granting them a duty-free status. The TCO applies nationwide across Australia, impacting importers of the specified goods by allowing them to apply for a refund of any duty paid on these goods since the effective date of the TCO. The Act ensures that the rights of the Commonwealth and other persons are not adversely affected by the concession. The process involves public consultation through the Gazette, although in this instance, no submissions were received. The TCO came into effect on the date the application was lodged, 1 July 2005.
Key Provisions
The Tariff Concession Order (TCO) No. 0508494, under the Customs Act 1901, provides specific concessions for certain ore conveyor systems. According to section 269F, an applicant may seek a TCO for goods, provided that these goods are not listed in section 269SJ, which outlines goods ineligible for TCOs. If the Chief Executive Officer (CEO) of Customs is satisfied that the application meets the core criteria outlined in section 269C, a TCO is issued. This order declares that the specified goods are subject to a particular item in Schedule 4 of the Customs Tariff Act 1995, granting them a duty-free status. In this case, the TCO specifies that the certain ore conveyor systems are subject to item 50 of Schedule 4, which sets the duty rate at zero, down from the general rate of 5%.
The Act imposes several obligations on the parties involved. Under section 269P(3), the CEO must ensure that the goods in question are not substitutable by any goods produced in Australia, as defined in section 269D. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from interested parties once a TCO application is accepted as valid, as per section 269K(1). This transparency step ensures that all stakeholders have an opportunity to voice any objections to the proposed concession. Moreover, the Act ensures that the rights of any person, excluding the Commonwealth, are not adversely affected by the issuance of a TCO, as stipulated in subsection 269S(1).
Failure to comply with the provisions of the Customs Act 1901 or the specific TCO regulations may result in legal consequences. The Act does not explicitly detail specific penalties for breaches related to TCOs. However, general penalties for non-compliance with customs regulations can include fines and, in severe cases, imprisonment. The precise penalties would depend on the nature and severity of the breach, as well as any additional regulations or legislative instruments that might apply. Importers, however, can benefit from this TCO by applying for a refund of duty on goods imported since the TCO's effective date under paragraph 126(1)(r) of the Regulations.