EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510271
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.
CSR Building Products Ltd applied for a TCO in respect of certain Glasswool Roll Manufacturing Line on 4 August 2005.
Instrument
TCO No 0510271 was made on 21 October 2005. It declares that those certain Glasswool Roll Manufacturing Line 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. 0510271 is taken to have come into force on 4 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 Customs Act 1901, enacted by the Parliament of Australia, establishes a framework for the administration of customs duties and provides for the making of Tariff Concession Orders (TCOs) to reduce customs duty rates on specific goods. This was introduced to address the need for flexibility in customs duty rates to support industry competitiveness and innovation. Under section 269F of the Act, an application can be made to the Chief Executive Officer of Customs for a TCO, provided the goods are not specified in section 269SJ, which lists those ineligible for concessions. The core criteria for approval, as outlined in section 269C, require that no substitutable goods are produced in Australia at the time of application. Tariff Concession Instrument No. 0510271 was enacted on 21 October 2005, following an application by CSR Building Products Ltd for a TCO concerning Glasswool Roll Manufacturing Lines, leading to a reduction in duty from 5% to 0%. The TCO aims to benefit importers by allowing duty refunds on eligible goods imported since the TCO's effective date, without imposing any liabilities.
Scope and Application
The Tariff Concession Instrument No. 0510271, under the Customs Act 1901, applies specifically to the import of certain Glasswool Roll Manufacturing Lines and the customs duty associated with these goods. The application of this instrument is directed towards the Chief Executive Officer of Customs, who evaluates applications for Tariff Concession Orders (TCOs) against specified criteria. The instrument is applicable from the date on which the application was lodged, 4 August 2005, and the concessions it provides do not affect any rights or liabilities accrued before this date. The instrument benefits importers by potentially allowing them to apply for a refund of customs duty on these goods from the date the TCO came into force. However, it does not apply to goods that are specified in section 269SJ of the Act, which outlines those goods that cannot be subject to a TCO. The instrument's scope is national, operating within the framework of Australian customs law, and it extends its application through subordinate instruments as necessary to administer the tariff concessions.
Key Provisions
The Tariff Concession Instrument No. 0510271, issued under the Customs Act 1901, applies to certain Glasswool Roll Manufacturing Lines and sets a concessional rate of customs duty of 0% instead of the general rate of 5%. This instrument is part of the scheme established under section 269F of the Customs Act, which allows for Tariff Concession Orders (TCOs) to be made by the Chief Executive Officer of Customs (section 269P(3)). For a TCO application to be valid, it must meet the core criteria set out in section 269C of the Act, specifically that on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C).
The obligations imposed by the Act on the parties involved primarily concern the application and review process for TCOs. An applicant must ensure their application meets the core criteria, which involves demonstrating that no substitutable goods were produced in Australia at the time of application (section 269C). The CEO of Customs is obligated to decide whether the application meets these criteria and, if satisfied, to make a TCO (section 269P(3)). The CEO is also required to publish a notice in the Gazette inviting submissions from any interested parties who might object to the TCO being made (subsection 269K(1)). In this case, no submissions were received, indicating broad acceptance of the concession.
In terms of consequences for non-compliance or breach, the Customs Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for failing to comply with a TCO. However, general provisions within the Customs Act and associated regulations may apply to breaches related to customs duties and imports. These could include penalties for incorrect declarations, fraud, or failure to pay applicable duties, which can result in fines or other legal actions. The specific penalties would be determined by the relevant provisions of the Customs Act and the associated Customs Regulations.