EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510523
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.
Major Projects Victoria applied for a TCO in respect of certain Synchrotron Parts on 11 August 2005.
Instrument
TCO No 0510523 was made on 21 October 2005. It declares that those certain Synchrotron 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. 0510523 is taken to have come into force on 11 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. 0510523 was enacted in 2005 under the Customs Act 1901, addressing the need to facilitate the import of specific goods by providing tariff concessions. This instrument was introduced to ensure that certain goods, in this case Synchrotron Parts, could be imported at a reduced or zero duty rate, provided they were not substitutable by goods produced in Australia. The Customs Act 1901, as amended, allows the Chief Executive Officer of Customs to make such tariff concession orders if no substitutable goods are produced domestically. The primary policy objective behind this legislation is to support significant projects and scientific research by ensuring that necessary imported components are affordable, thus fostering economic and scientific growth.
The enactment of this instrument by the Parliament of Australia reflects a commitment to providing targeted relief to importers and end-users of specific goods, ensuring they are not unduly burdened by customs duties. This approach aids in the efficient functioning of major projects and research initiatives by reducing the cost of essential imported materials. The instrument was introduced following an application by Major Projects Victoria for tariff concessions on Synchrotron Parts, demonstrating a direct response to the needs of significant infrastructure and research projects within Australia.
Scope and Application
The Tariff Concession Instrument No. 0510523 under the Customs Act 1901 applies to goods specified in the instrument, namely certain Synchrotron Parts. This act enables the Chief Executive Officer of Customs to grant a Tariff Concession Order (TCO) to provide a lower rate of customs duty on these specified goods. The concession applies to individuals or entities importing these goods into Australia, provided they meet the criteria set out in the Act. The geographic reach of this legislation is national, as it pertains to the importation of goods into Australia. The Act does not specify any exclusions or exemptions for these particular goods but mandates that no substitutable goods were produced in Australia on the day the application was lodged. The TCO does not affect any rights of persons other than the Commonwealth as at the date of registration and does not impose any liabilities on any person. The instrument extends the application of the Act by providing specific details on the goods subject to the concession and the rate of duty applicable.
Key Provisions
The main operative sections of this legislation, specifically sections 269C, 269B, 269D, 269E, and 269P(3) of the Customs Act 1901, establish a framework for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). According to section 269C, a TCO can be made if the CEO determines that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Definitions for key terms such as ‘substitutable goods’ and ‘ordinary course of business’ are provided in sections 269B, 269D, and 269E, while section 269P(3) mandates the creation of a written order (TCO) if the core criteria are met. The TCO in question, No. 0510523, was made on 21 October 2005 and applies to certain Synchrotron Parts, declaring them to be subject to item 50 of Schedule 4 to the Customs Tariff Act 1995 with a duty rate of 0%.
The Act imposes specific obligations and requirements on the CEO and applicants for TCOs. The CEO must ensure that applications for TCOs are assessed against the core criteria (section 269C), publish notices in the Gazette inviting submissions on applications (subsection 269K(1)), and make TCOs if the criteria are met (section 269P(3)). Additionally, the CEO must not issue TCOs for goods specified in section 269SJ of the Act. Applicants must provide sufficient information to demonstrate that no substitutable goods were produced in Australia at the time of application. Once a TCO is issued, importers can apply for refunds of duty paid on goods imported since the TCO came into effect (paragraph 126(1)(r) of the Regulations).
There are no specific offences outlined in this legislation, but breaches of the conditions for issuing TCOs could lead to civil or administrative consequences. The TCO itself does not impose any new liabilities on individuals or entities, and it does not affect the rights of any person as at the date of registration. Any existing rights or liabilities are preserved. If the CEO fails to follow the statutory requirements in making a TCO, this could potentially lead to legal challenges regarding the validity of the TCO. However, the text does not specify penalties for such failures, indicating that the consequences would be determined in the context of any resulting legal proceedings.