EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0509440
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.
TMC Australia Pty Limited applied for a TCO in respect of certain semi-trailer landing legs on 18 July 2005.
Instrument
TCO No 0509440 was made on 23 September 2005. It declares that those certain semi-trailer landing legs 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. 0509440 is taken to have come into force on 18 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. 0509440, made under the Customs Act 1901, was introduced to address the issue of providing tariff concessions on specific goods. Enacted in 2005, this instrument allows for the application of lower rates of customs duty on goods that meet certain criteria, in this case, semi-trailer landing legs. The purpose of this instrument was to ensure that if no substitutable goods were produced in Australia, the goods in question could be subject to tariff concessions. This was in line with the policy objective of facilitating trade and reducing costs for importers by lowering customs duties on certain imported goods. The instrument was made by the Chief Executive Officer of Customs, following an application by TMC Australia Pty Limited and after no objections were raised during the consultation period. The tariff concession came into effect on the date the application was lodged, 18 July 2005, and it did not impose any liabilities or disadvantage any persons other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0509440 under the Customs Act 1901 applies to specific goods, in this instance certain semi-trailer landing legs, which are subject to a lower rate of customs duty as outlined in the Instrument. The application of this legislation is limited to those who meet the core criteria set out in the Customs Act, specifically that no substitutable goods are produced in Australia in the ordinary course of business at the time of the application. The geographic and jurisdictional reach of this Instrument is federal, as it falls under the purview of the Commonwealth of Australia. The Instrument excludes goods specified in section 269SJ of the Customs Act, which are ineligible for tariff concessions. The application of the Instrument may be extended or restricted through subordinate instruments, though the primary scope remains as defined in the Customs Act. The Instrument came into force on the date of the application, 18 July 2005, and does not disadvantage any person other than the Commonwealth or impose liabilities for actions prior to its registration.
Key Provisions
The key provisions of Tariff Concession Instrument No. 0509440 under the Customs Act 1901 (section 269P(3)) relate to the granting of tariff concessions for certain goods. This instrument, specifically TCO No. 0509440, was issued on 23 September 2005 and applies to certain semi-trailer landing legs, declaring them to be subject to item 50 of Schedule 4 of the Customs Tariff Act 1995. This means that these goods will be exempt from the general duty rate of 5%, which applies to similar goods not covered by a tariff concession order. Instead, the goods subject to this order will benefit from a duty-free rate.
The obligations imposed by this Act on the parties it governs include the requirement for an applicant to apply to the Chief Executive Officer of Customs (section 269F) if they wish to secure a tariff concession for specific goods. The CEO must ensure that the application does not pertain to goods specified in section 269SJ, which are ineligible for a tariff concession. Furthermore, the CEO must assess whether the application meets the core criteria, which include 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 core criteria are met, they must make a written order declaring the goods to which the prescribed tariff concession applies (section 269P(3)).
In the case of TCO No. 0509440, TMC Australia Pty Limited applied for a tariff concession for certain semi-trailer landing legs on 18 July 2005. The CEO was satisfied that no substitutable goods were produced in Australia on that date, and therefore, the CEO issued the order declaring the goods to be exempt from the general rate of duty. The CEO must also publish a notice in the Gazette inviting any interested parties to submit objections to the making of the order if they believe it should not proceed (subsection 269K(1)). In this instance, no submissions were received. The tariff concession order is taken to have come into force on the date the application was lodged, which was 18 July 2005 (subsection 269S(1)). It is important to note that this order does not affect the rights of any person, other than the Commonwealth, as at the date of registration, nor does it impose any liabilities on any person for actions taken prior to the registration date.
Failure to comply with the provisions of the Customs Act 1901 or any associated regulations could result in offences, penalties, or other consequences. However, the explanatory statement for this particular tariff concession instrument does not detail specific offences or penalties. Generally, breaches of the Customs Act may incur civil or criminal penalties, depending on the severity and intent behind the breach. The maximum penalties can vary, but they may include fines or imprisonment for more serious offences. The specifics of penalties would be outlined in the relevant sections of the Customs Act and associated regulations.