EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0511114
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.
Campbell Consumer Products applied for a TCO in respect of certain Fillers and Cappers on 23 August 2005.
Instrument
TCO No 0511114 was made on 28 October 2005. It declares that those certain Fillers and Cappers 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. 0511114 is taken to have come into force on 23 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 was enacted to provide for the regulation of the import and export of goods, including the collection of customs duties and the enforcement of relevant laws. The Act was introduced to address the need for a comprehensive legal framework governing the customs and border protection processes in Australia. This Act, enacted by the Australian Parliament, aims to facilitate international trade while ensuring the protection of national interests and the enforcement of regulatory compliance. Tariff Concession Instrument No. 0511114, made under the Customs Act 1901, provides for tariff concessions on certain Fillers and Cappers, as applied by Campbell Consumer Products. The instrument was enacted to ensure that these goods benefit from a reduced rate of customs duty, reflecting the policy objective of promoting fair and efficient trade practices.
Scope and Application
The Tariff Concession Instrument No. 0511114 under the Customs Act 1901 applies specifically to goods that are subject to a Tariff Concession Order (TCO). This legislation is enacted to allow the Chief Executive Officer of Customs to reduce the rate of customs duty on certain goods, provided the application for such a concession meets the core criteria as outlined in the Act. The TCO applies to individuals or entities that have applied for tariff concessions in respect of goods that are not specified as ineligible under section 269SJ of the Act. This includes cases where the goods in question are not produced in Australia in the ordinary course of business and have no substitutable goods available domestically. The geographic scope of this legislation is national, impacting all importers and exporters across Australia. There are no exclusions or exemptions outlined within this specific TCO, but broader exclusions are addressed in the Customs Act 1901. The application of this Act can be extended or restricted through subordinate instruments, which may provide additional details or specific conditions for certain types of goods or industries.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 0511114, under the Customs Act 1901, involve the creation and implementation of Tariff Concession Orders (TCOs) (sections 269F, 269C, and 269P). Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a TCO for specific goods. If the application meets the core criteria (section 269C), the CEO must issue a written order, known as a TCO, stating that the goods in question are subject to a prescribed rate of customs duty, which in this case is 0% for the Fillers and Cappers (section 269P(3)).
The Act imposes several obligations and requirements on both the applicant and the CEO. The applicant must ensure that the goods in question do not have substitutable goods produced in Australia, as per section 269C. The CEO, upon receiving a valid application, must determine if it meets the core criteria and then publish a notice in the Gazette inviting any interested parties to submit objections or reasons why the TCO should not be granted (section 269K). If no objections are received, the CEO must proceed to issue the TCO.
In terms of penalties and consequences, the Act does not explicitly state penalties for breaches of the TCO provisions. However, failure to comply with the conditions set out in the TCO or any associated regulations could potentially lead to civil or criminal consequences, such as fines or legal action. The exact penalties would depend on the specific breach and the relevant laws governing customs and tariffs. The Act ensures that the rights of persons other than the Commonwealth are protected, meaning that the TCO does not disadvantage any individual or impose liabilities for actions taken before the TCO's effective date (subsection 269S(1)).