EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0508783
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.
Freudenberg Household Products Pty Limited applied for a TCO in respect of certain disposable electrostatic dusters on 28 June 2005.
Instrument
TCO No 0508783 was made on 16 September 2005. It declares that those certain disposable electrostatic dusters 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. 0508783 is taken to have come into force on 28 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, establishes a framework for the application of customs duties, including the provision for Tariff Concession Orders (TCOs). The problem this Act addresses is the potential for unfair competitive disadvantages faced by Australian businesses when imported goods compete with locally produced goods that are functionally similar. The Act enables the Chief Executive Officer of Customs to grant tariff concessions, effectively reducing or eliminating customs duty on certain goods if no substitutable goods are produced in Australia. This ensures that Australian manufacturers are not put at a disadvantage due to import competition. The policy objective is to promote fair trade and support local industry by reducing the customs duty on specific goods when no domestic equivalent exists. Tariff Concession Instrument No. 0508783, issued under the authority of the Customs Act 1901, provides tariff concessions for certain disposable electrostatic dusters, effectively reducing the customs duty on these items from 5% to free.
Scope and Application
The Tariff Concession Instrument No. 0508783 under the Customs Act 1901 applies specifically to certain disposable electrostatic dusters, which are now subject to a tariff concession order (TCO) following an application by Freudenberg Household Products Pty Limited. This TCO was made by the Chief Executive Officer of Customs (the CEO) after determining that no substitutable goods were produced in Australia on the date the application was lodged. The application was processed under section 269F, which allows for the CEO to consider applications for TCOs if the goods in question are not specified under section 269SJ as ineligible. The concession reduces the customs duty on these specific goods from a general rate of 5% to free, thereby benefitting the importers who can apply for a refund of duty on goods imported since the effective date of the TCO, which is 28 June 2005. This instrument operates under the broader Customs Act 1901 and is part of the Australian Commonwealth's regulatory framework, extending its reach across all entities importing these goods within Australia. The TCO does not disadvantage any person or impose liabilities for actions taken prior to the registration date.
Key Provisions
The Tariff Concession Instrument No. 0508783 under the Customs Act 1901 (the Act) pertains to the application of tariff concessions on certain disposable electrostatic dusters. Section 269F of the Act allows for applications to the Chief Executive Officer of Customs (the CEO) for Tariff Concession Orders (TCOs). If the CEO determines that the application meets the core criteria, as outlined in section 269C, they are required to issue a TCO, which effectively lowers the customs duty on the specified goods. In this case, the CEO issued TCO No. 0508783 on 16 September 2005, after Freudenberg Household Products Pty Limited applied for a TCO on 28 June 2005. This TCO stipulates that the specified disposable electrostatic dusters are subject to a free rate of duty, as opposed to the general rate of 5% (subsection 269P(3)).
The Act imposes specific obligations on the CEO when processing a TCO application. According to section 269K(1), the CEO must publish a notice in the Gazette, inviting submissions from any interested parties who may have reasons to oppose the TCO. In this instance, the CEO did not receive any submissions, indicating a lack of opposition to the TCO. Furthermore, section 269S(1) stipulates that a TCO is deemed to come into force on the date the application is lodged, which in this case was 28 June 2005. The TCO does not retroactively affect the rights of any person, ensuring that no pre-existing rights are disadvantaged, nor does it impose any liabilities on any person (subsection 269S(1)).
Under the Customs Act 1901, there are potential consequences for breaches related to TCOs. Although the explanatory statement does not explicitly detail offences, penalties, or consequences for non-compliance with the TCO provisions, the general framework of the Act and associated regulations would apply. Typically, breaches of customs regulations can result in civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. For instance, knowingly making a false statement in an application could lead to criminal charges, with potential penalties including fines and imprisonment as outlined in other sections of the Customs Act and related regulations. The specific penalties would be determined based on the applicable provisions of the Act and the circumstances of the breach.