EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0509609
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.
Bluescope Steel Ltd applied for a TCO in respect of certain Walking Beam Furnace Extraction Parts on 20 July 2005.
Instrument
TCO No 0509609 was made on 30 September 2005. It declares that those certain Walking Beam Furnace Extraction 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. 0509609 is taken to have come into force on 20 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 was enacted by the Commonwealth Parliament to regulate the import and export of goods into and out of Australia. The Act was introduced to address the need for a comprehensive framework governing customs duties and trade regulations to ensure the efficient and effective management of the nation's borders. Tariff Concession Instrument No. 0509609, made under the Customs Act, aims to provide a tariff concession for certain Walking Beam Furnace Extraction Parts, reducing the customs duty from 5% to 0% for these specific goods. This measure was introduced to support industry needs by lowering the cost of importing these particular parts, thereby facilitating more competitive pricing and potentially boosting economic activity related to the use of these parts. The instrument was created following an application by Bluescope Steel Ltd and was implemented without any objections, aligning with the policy objective of fostering an environment conducive to business growth and efficiency within the regulated trade framework.
Scope and Application
The Tariff Concession Instrument No. 0509609 under the Customs Act 1901 applies specifically to goods identified in the application by Bluescope Steel Ltd, namely certain Walking Beam Furnace Extraction Parts. The Act allows for the Chief Executive Officer of Customs to grant tariff concessions on goods provided certain criteria are met, primarily that no substitutable goods are produced in Australia. This instrument applies to the goods specified in the TCO and impacts the customs duty rates, reducing them from the general rate of 5% to 0%. The scope of the legislation is confined to the goods identified in the application, and it does not affect any pre-existing rights or impose liabilities on any person other than the Commonwealth. The application of this legislation is national, operating under the authority of the Commonwealth, and it does not extend to goods specified in section 269SJ of the Act, which are ineligible for tariff concessions. The instrument is effective from the date the application was lodged, which is 20 July 2005.
Key Provisions
The Customs Act 1901, particularly under Part XVA, governs the scheme through which Tariff Concession Orders (TCOs) are issued by the Chief Executive Officer of Customs (CEO) (section 269F). A TCO results in a reduced rate of customs duty on specific goods, provided the application for such an order meets the core criteria. For instance, in the case of TCO No. 0509609, certain Walking Beam Furnace Extraction Parts, which are subject to a general duty rate of 5%, have a duty rate of 0% as per the order (section 269P(3)).
Entities or individuals seeking a TCO must ensure that their application meets the core criteria, which include the absence of substitutable goods produced in Australia on the day the application is lodged (section 269C). The CEO is obligated to assess whether the application complies with these criteria and, if satisfied, to publish a notice in the Gazette inviting submissions from any person who might oppose the making of the order (subsection 269K(1)). If no objections are raised, and the CEO determines that the application meets the core criteria, the CEO must issue a written TCO (subsection 269P(3)). In the instance of TCO No. 0509609, no objections were received, and the CEO issued the order on 30 September 2005.
Failure to comply with the provisions of the Customs Act 1901 or the conditions of a TCO can lead to various consequences. While specific penalties are not outlined in the text, breaches of the Act or non-compliance with TCO conditions could result in legal actions, fines, or other penalties as prescribed by law. The Act ensures that the rights of persons, other than the Commonwealth, are not adversely affected by the TCO, and it does not impose new liabilities on any person (subsection 269S(1)).
The commencement date of the TCO is the date on which the application is lodged (subsection 269S(1)). Therefore, TCO No. 0509609 is considered effective from 20 July 2005. Importers of the affected goods can apply for a refund of duty paid on imports from the commencement date under the relevant regulations (paragraph 126(1)(r) of the Regulations). The TCO itself does not impose any liabilities on any person, ensuring that the rights of importers are beneficially affected without creating new obligations.