EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510011
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 Limited applied for a TCO in respect of certain walking beam furnace parts on 02 August 2005.
Instrument
TCO No 0510011 was made on 07 October 2005. It declares that those certain walking beam furnace 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 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. 0510011 is taken to have come into force on 02 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. 0510011, enacted in 2005, is an instrument under the Customs Act 1901, designed to address the need for tariff concessions for specific imported goods. This instrument was introduced by the Parliament of Australia to facilitate a more flexible and responsive approach to customs duties, ensuring that certain goods are not subjected to prohibitive tariffs if they are not produced domestically. The instrument aims to provide economic benefits by reducing the duty rates for specified imported goods, thereby encouraging trade and potentially lowering costs for importers. The Tariff Concession Order (TCO) No. 0510011 was issued following an application by Bluescope Steel Limited, and it became effective from the date of the application, 2 August 2005, without imposing any liabilities on persons other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0510011 applies to the specific goods in question, namely certain walking beam furnace parts, as designated by Bluescope Steel Limited. This instrument is an outcome of the Customs Act 1901, which empowers the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) that reduce the customs duty on certain imported goods. The Act applies to any person who applies for a TCO, provided the goods in question are not prohibited under section 269SJ of the Act and meet the core criteria outlined in section 269C. The TCO in question was made in response to an application by Bluescope Steel Limited, and its primary application is within the Commonwealth jurisdiction, as it pertains to customs and tariff regulation. The TCO does not affect any rights or impose any liabilities on persons other than the Commonwealth, and it specifically benefits importers of the designated goods by allowing them to apply for a refund of duty on those goods. The instrument is effective from the date the application was lodged, which is 02 August 2005, and there are no exclusions or exemptions noted for this particular TCO.
Key Provisions
The main operative sections of the Customs Act 1901 (the Act) relevant to the Tariff Concession Instrument No. 0510011 include section 269C, which sets out the core criteria that a Tariff Concession Order (TCO) application must meet, and section 269P, which outlines the process for making a TCO. Section 269C requires that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. If the Chief Executive Officer of Customs (the CEO) is satisfied that the application meets these criteria, they must make a written order declaring that the goods in question are subject to a lower rate of customs duty, as specified in Schedule 4 to the Customs Tariff Act 1995 (the Tariff). In this specific case, section 269P(3) of the Act was applied, leading to the issuance of TCO No. 0510011, which declares that certain walking beam furnace parts are subject to a free rate of duty, down from the general rate of 5%.
The obligations and requirements imposed by the Act on the parties it governs include the application process for a TCO, as outlined in section 269F. The CEO must ensure that the application does not pertain to goods specified in section 269SJ, which lists goods ineligible for a TCO. If the CEO is satisfied that the application meets the core criteria set out in section 269C, they are obligated to make a TCO. Furthermore, under subsection 269K(1) of the Act, the CEO must publish a notice in the Gazette inviting any interested parties to lodge submissions if they believe the TCO should not be made. This consultation process ensures transparency and allows for potential objections to be heard.
Any breaches of the obligations and requirements set forth in the Act may lead to civil or criminal consequences. For instance, providing false information in an application for a TCO could result in penalties. Although the explanatory statement does not detail specific offences or penalties for breaches, the general principles of the Act and associated regulations imply that any significant non-compliance could lead to fines or other legal repercussions. The maximum penalties for such breaches would be consistent with those typically outlined in the Customs Act 1901, which can include substantial fines and, in some cases, imprisonment. The precise penalties would depend on the nature and severity of the breach.