EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0509432
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.
I.N.C. Corporation Pty Ltd applied for a TCO in respect of certain semi-cured jute felt on 14 July 2005.
Instrument
TCO No 0509432 was made on 07 October 2005. It declares that the certain semi-cured jute felt is a product 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. 0509432 is taken to have come into force on 14 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 Customs Act 1901, amended by the Tariff Concession Instrument No. 0509432, was enacted to provide a mechanism for tariff concessions on certain imported goods, thereby addressing the gap in duty concessions where no substitutable goods were produced in Australia. This instrument was created to respond to specific applications for tariff concessions, such as the one made by I.N.C. Corporation Pty Ltd for semi-cured jute felt, ensuring that such goods receive a preferential duty rate. The instrument was enacted by the Parliament of Australia, with the objective of facilitating trade by reducing the cost of importing certain goods that are not produced domestically, thus supporting economic activities that rely on these imports. The instrument was designed to ensure that tariff concessions do not disadvantage existing rights or impose new liabilities on individuals or entities, thereby maintaining fairness and continuity in the application of customs duties.
Scope and Application
The Tariff Concession Instrument No. 0509432 is a regulation under Part XVA of the Customs Act 1901, which pertains to Tariff Concession Orders (TCOs) that can be issued by the Chief Executive Officer of Customs. This instrument applies to entities or individuals seeking tariff concessions for specific goods, provided those goods are not excluded under section 269SJ of the Act. The primary criterion for granting a TCO, as outlined in section 269C, is that no substitutable goods are produced in Australia in the ordinary course of business. The instrument has a national reach within Australia, and its application can be extended or restricted by subordinate instruments. Specifically, it applies to certain semi-cured jute felt, granting it a tariff concession that reduces its duty from 5% to free. The instrument’s commencement date is 14 July 2005, and it does not adversely affect the rights of any person other than the Commonwealth, nor does it impose any liabilities on any person. Importers of the affected goods can apply for a refund of duty under the relevant regulations.
Key Provisions
The primary operative sections of this legislation are sections 269C, 269F, 269P(3) and 269SJ of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of certain goods. Section 269C stipulates that for a TCO application to meet the core criteria, no substitutable goods must be produced in Australia on the day the application was lodged. Section 269P(3) mandates that if the CEO is satisfied that the application meets the core criteria, they must make a written order declaring the goods in question as eligible for a TCO. Section 269SJ outlines the goods that cannot be subject to a TCO. This particular instrument, TCO No. 0509432, applies to certain semi-cured jute felt, which is now subject to a free rate of duty instead of the general rate of 5%.
The obligations imposed by this Act on the parties it governs primarily involve the application process for a TCO. The applicant must ensure that the goods in question are not substitutable by any goods produced in Australia on the day the application is lodged. The CEO is required to publish a notice in the Gazette inviting submissions from any interested parties and must make a decision based on whether the application meets the core criteria. In this case, since I.N.C. Corporation Pty Ltd's application for a TCO in respect of certain semi-cured jute felt was made on 14 July 2005 and the CEO did not receive any submissions, the TCO was duly made.
The legislation also outlines potential consequences for breaches. However, in this instance, no specific offences, penalties or consequences are mentioned for failing to comply with the Act or the TCO. It is worth noting that 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 in respect of anything done or omitted to be done before the date of registration. The rights of importers will be beneficially affected, with importers of such goods 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.