EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510004
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.
Projex Group Pty Ltd applied for a TCO in respect of certain Stainless Steel Composite Sheet on 1 August 2005.
Instrument
TCO No 0510004 was made on 21 October 2005. It declares that those certain Stainless Steel Composite Sheet 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. 0510004 is taken to have come into force on 1 August 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. 0510004, enacted in 2005, pertains to the Customs Act 1901, addressing the need for a streamlined process to provide tariff concessions on specific imported goods. This instrument was introduced to provide a mechanism for reducing customs duties on certain goods under specific conditions, thereby facilitating trade and benefiting importers by lowering their duty obligations. The enacting body, as per the Customs Act 1901, is the Chief Executive Officer of Customs, who is tasked with evaluating applications and making orders based on the criteria stipulated within the Act. The overarching policy objective of this legislation is to support trade by ensuring that tariff concessions are granted appropriately, fostering an environment conducive to economic growth through efficient customs procedures.
Scope and Application
The Customs Act 1901, specifically under Part XVA, establishes a framework through which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO). These orders allow for a lower rate of customs duty on goods specified in the order. The scope of the Act applies to any person or entity that seeks to import goods and benefits from the tariff concessions outlined in the TCOs. This legislation is applicable across the Commonwealth of Australia, governing the customs duties on goods imported into Australia. The Act excludes certain goods from being subject to a TCO, as specified in section 269SJ. The TCOs are made through subordinate instruments and are subject to the core criteria set out in section 269C, which necessitates that no substitutable goods are produced in Australia in the ordinary course of business on the date the application was lodged. The application process involves publication in the Gazette, inviting submissions from interested parties, although no submissions were received for TCO No. 0510004 concerning certain Stainless Steel Composite Sheet. The TCOs come into effect on the date the application is lodged, as stipulated in section 269S(1), and they do not disadvantage any person or impose liabilities for actions prior to their registration.
Key Provisions
The Tariff Concession Instrument No. 0510004 under the Customs Act 1901 introduces a tariff concession order (TCO) for certain Stainless Steel Composite Sheet, which reduces the customs duty from the general rate of 5% to 0%. This order was made on 21 October 2005 in response to an application submitted by Projex Group Pty Ltd on 1 August 2005. The order was issued as the Chief Executive Officer (CEO) of Customs was satisfied that no substitutable goods were being produced in Australia on the date the application was lodged, thus meeting the core criteria specified in section 269C. Section 269P(3) of the Act mandates that once the CEO confirms these conditions, a written TCO must be issued.
The Act imposes certain obligations on the parties involved. The CEO must ensure that any TCO application is valid and meets the core criteria outlined in section 269C. This includes confirming that no substitutable goods are produced in Australia in the ordinary course of business, as defined by section 269E. Additionally, under subsection 269K(1), the CEO must publish a notice in the Gazette inviting submissions from interested parties if a TCO application is accepted as valid. However, in this instance, no submissions were received. The Act also ensures that the rights of individuals and entities are protected, stipulating that the TCO does not affect any existing rights or impose liabilities for actions taken before the TCO was registered.
Breach of the provisions set out in the Customs Act 1901 can result in serious consequences. While the explanatory statement does not detail specific offences or penalties related to the TCO, the Act generally provides for various penalties for breaches. These can include fines and imprisonment, depending on the nature and severity of the breach. For example, section 230A of the Customs Act outlines that any person who contravenes certain provisions can be subject to fines and imprisonment. Although the specific penalties for breaches related to TCOs are not detailed, the overarching legislative framework suggests that penalties could be significant, reflecting the seriousness of non-compliance with customs regulations.