EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0511231
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.
Ronchi (Aust) Pty Ltd applied for a TCO in respect of certain trigger pump inserters on 24 August 2005.
Instrument
TCO No 0511231 was made on 04 November 2005. It declares that those certain trigger pump inserters 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. 0511231 is taken to have come into force on 24 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. 0511231, enacted in 2005 under the Customs Act 1901, addresses the need to provide tariff concessions for specific imported goods. This instrument was introduced to facilitate the reduction of customs duty on certain goods, in this case, trigger pump inserters, which were the subject of an application by Ronchi (Aust) Pty Ltd. The instrument was made pursuant to section 269P of the Customs Act 1901, following an application under section 269F, and after determining that the core criteria for tariff concession were met, as stipulated in section 269C. The policy objective of this instrument is to reduce the burden on businesses importing these specific goods by offering a concessional rate of duty, thus promoting trade and economic efficiency. The enactment of this instrument by the Chief Executive Officer of Customs, in accordance with the legislative requirements, ensures that the rights of importers are protected and that no new liabilities are imposed.
Scope and Application
The Tariff Concession Instrument No. 0511231 under the Customs Act 1901 applies to specific goods, in this case, certain trigger pump inserters, and is targeted towards entities and individuals involved in the importation of these goods. The instrument is applicable on a national level as it is a Commonwealth instrument. The scope of the Act extends to facilitating tariff concessions for goods that are not produced in Australia in the ordinary course of business, thereby ensuring that importers are not disadvantaged by the imposition of customs duties on goods that are not locally manufactured. The instrument’s application is contingent upon the Chief Executive Officer of Customs determining that no substitutable goods are produced in Australia, which is a core criterion specified under section 269C of the Act. The instrument does not affect any pre-existing rights or impose liabilities on persons other than the Commonwealth. The commencement date of the instrument is the date on which the application for the tariff concession was lodged, which in this instance is 24 August 2005. There are no exclusions or exemptions stated within the scope of this particular instrument, although the Act itself excludes certain goods from being subject to a tariff concession order as per section 269SJ.
Key Provisions
The primary sections relevant to Tariff Concession Orders (TCOs) under the Customs Act 1901 are sections 269C, 269P, 269S, and 269K. Section 269C sets out the core criteria that an application must meet to be eligible for a TCO, focusing on whether substitutable goods are produced in Australia. Section 269P mandates that if the Chief Executive Officer of Customs (CEO) is satisfied that the core criteria are met, they must make a written order declaring the goods subject to the TCO. Section 269S specifies that a TCO comes into effect on the date the application was lodged, and section 269K requires the CEO to publish a notice in the Gazette inviting submissions on the application, although no submissions were received in this case.
The Act imposes several obligations on the parties involved. The applicant, in this case Ronchi (Aust) Pty Ltd, must submit an application to the CEO for a TCO and provide sufficient information to satisfy the CEO that the core criteria are met. The CEO is required to assess the application against the criteria outlined in section 269C, determine whether any substitutable goods are produced in Australia, and make a written order if the criteria are met. Furthermore, the CEO must publish a notice in the Gazette inviting submissions on the application, although it is not mandatory to receive any submissions before proceeding. These obligations ensure a transparent and fair process for granting tariff concessions.
The Customs Act 1901 does not explicitly state any criminal or civil penalties for non-compliance with the TCO provisions. However, any failure to adhere to the statutory requirements or obligations may result in legal consequences under other relevant provisions of the Act or related legislation. For instance, if an entity incorrectly claims a tariff concession or fails to comply with customs regulations, they may face penalties under the Customs Act or associated regulations. Although the specific maximum penalties are not detailed in this context, they could include fines or other enforcement actions as stipulated in the broader legislative framework.
The Tariff Concession Order No. 0511231 made on 4 November 2005, declares that certain trigger pump inserters are subject to a tariff concession, resulting in a duty-free status for these goods. This order, effective from 24 August 2005, the date of application, provides significant benefits to importers by potentially allowing them to apply for refunds of duty paid on these goods since the commencement date. Importantly, the TCO does not impose any liabilities on any person and does not affect the rights of any person other than the Commonwealth in respect of actions taken before the date of registration.