EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0510730
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.
Licesnatcher Australia applied for a TCO in respect of certain Head Lice Removers on 16 August 2005.
Instrument
TCO No 0510730 was made on 28 October 2005. It declares that those certain Head Lice Removers 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. 0510730 is taken to have come into force on 16 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. 0510730 was enacted in 2005 to address the need for tariff concessions on specific goods, thereby providing relief from customs duties. This instrument amends the Customs Act 1901 by authorising tariff concessions for certain Head Lice Removers, reducing their customs duty from the general rate of 5% to 0%. This concession was implemented to support Australian businesses and consumers by making essential goods more affordable. The instrument was created under the authority of the Chief Executive Officer of Customs, who determined that no substitutable goods were being produced in Australia at the time of the application. The process involved publishing a notice in the Gazette to allow for any objections, though none were received. The tariff concession came into force on the date the application was lodged, 16 August 2005, and it does not affect any pre-existing rights or impose new liabilities on individuals or entities, except for the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0510730, made under the Customs Act 1901, applies to individuals or entities that seek tariff concessions for specific goods, in this case Head Lice Removers, by applying to the Chief Executive Officer of Customs. This instrument facilitates the application of a reduced rate of customs duty on these goods, provided the application meets the core criteria outlined in the Act. The process is specifically designed to apply to goods that are not already being produced in Australia and that have no substitutable goods available domestically, thereby ensuring that local industries are not adversely affected. Geographically, the Act operates at the national level, applying across Australia in accordance with the Commonwealth's legislative powers. The application of this Tariff Concession Order does not disadvantage any person other than the Commonwealth and does not impose any new liabilities on any person. The rights of importers are positively affected, as they can apply for a refund of duty on goods imported since the day the TCO is taken to have come into force.
Key Provisions
The main operative sections of this legislation focus on the creation and operation of Tariff Concession Orders (TCOs) under the Customs Act 1901 (sections 269C, 269F, 269P). Section 269F allows an individual to apply to the Chief Executive Officer (CEO) of Customs for a TCO for specific goods. If the CEO determines that the application is valid and meets the core criteria outlined in section 269C, a TCO will be issued. Section 269P(3) mandates that the CEO must issue a written order if satisfied that the application meets these criteria. The TCO then applies a lower rate of customs duty to the specified goods, as outlined in the Customs Tariff Act 1995.
The Customs Act imposes several obligations on the parties involved. Firstly, the CEO is required to assess whether an application for a TCO meets the core criteria, which include the absence of substitutable goods produced in Australia (section 269C). If the application is valid, the CEO must issue a TCO (section 269P(3)). Additionally, section 269K(1) mandates that the CEO must publish a notice in the Gazette after accepting a TCO application, inviting any interested parties to submit objections or submissions. The CEO did not receive any submissions in response to the notice for TCO No. 0510730.
Any breaches of the Customs Act can lead to both civil and criminal consequences. While the specific offences, penalties, or consequences for non-compliance with the TCO provisions are not detailed in the explanatory statement, the Customs Act generally provides for penalties, including fines and imprisonment, for offences such as fraudulent importation or false statements. The exact penalties would be determined by the severity of the offence and the discretion of the court. Furthermore, the Act ensures that the rights of importers will be beneficially affected, allowing them to apply for a refund of duty on goods imported since the TCO came into force (paragraph 126(1)(r) of the Regulations). The TCO itself does not impose any liabilities on any person.
In summary, the legislation outlines a clear process for applying for and issuing Tariff Concession Orders, ensuring that eligible goods receive a lower rate of customs duty. It imposes specific duties on the CEO of Customs to assess applications and publish notices in the Gazette, while also ensuring that the rights of importers are protected. Breaches of the Act can result in civil or criminal penalties, although the specific consequences are not detailed in the explanatory statement.