EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510721
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.
Air International Thermal (Australia) Pty Ltd applied for a TCO in respect of certain drawn aluminium tubes on 15 August 2005.
Instrument
TCO No 0510721 was made on 28 October 2005. It declares that those certain drawn aluminium tubes 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. 0510721 is taken to have come into force on 15 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. 0510721, introduced under the Customs Act 1901, was enacted to address the need for tariff concessions on certain goods that are not produced domestically, thereby reducing the customs duty for these imports. This instrument was developed to facilitate easier access to imported goods that are crucial for industries but not manufactured in Australia. The Customs Act 1901, administered by the Australian Parliament, aims to streamline the importation process and reduce costs for businesses importing essential goods, thereby supporting economic efficiency and competitiveness. Specifically, this instrument was designed to ensure that no substitutable goods were produced in Australia at the time of the application, aligning with the core criteria for tariff concessions as outlined in the Act. The implementation of this instrument ensures that importers benefit from lower duty rates, improving their operational costs and competitiveness in the market.
Scope and Application
The Customs Act 1901, as amended by Tariff Concession Instrument No. 0510721, outlines a process through which the Chief Executive Officer of Customs can make Tariff Concession Orders (TCOs) to apply lower rates of customs duty on specific goods. This Act applies to any person or entity that imports goods into Australia and seeks a tariff concession. The geographic reach of the Act is national, as it applies across all states and territories of Australia. The Act allows for TCOs to be made if certain core criteria are met, specifically if the goods in question are not substitutable by goods produced in Australia in the ordinary course of business. The application process involves submitting a request to the CEO, who must then determine whether the goods in question meet the criteria set out in the Act. If the CEO is satisfied that the application meets the criteria, they are required to issue a written order, which is effective from the date the application was lodged. The Act does not disadvantage any person other than the Commonwealth and does not impose any liabilities on any person.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0510721 include sections 269C, 269P(3), and 269S(1) of the Customs Act 1901. Section 269C requires that an application for a Tariff Concession Order (TCO) meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269P(3) mandates that if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets the core criteria, a written order must be made declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. Section 269S(1) specifies that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged.
The obligations imposed by the Act on the parties involved include the requirement for the CEO to determine whether an application for a TCO meets the core criteria, as outlined in section 269C. If the CEO finds that the application does meet the criteria, they must issue a TCO as per section 269P(3). Additionally, as per section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any interested parties regarding the application. In this case, no submissions were received, simplifying the process.
For breaches or non-compliance with the provisions of the Customs Act 1901, various offences and penalties may apply. Section 273 of the Act provides for penalties for making false or misleading statements, which can result in a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. Further, section 272 imposes penalties for offences involving the importation or exportation of goods in contravention of the Act, which can include fines of up to 10,000 penalty units and imprisonment for up to five years. However, the specific TCO instrument does not introduce new penalties or offences beyond what is already established under the broader Customs Act 1901.