EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0511533
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.
Independent Tyre Distributors applied for a TCO in respect of certain tyres on 02 September 2005.
Instrument
TCO No 0511533 was made on 18 November 2005. It declares that those certain tyres 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. 0511533 is taken to have come into force on 02 September 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. 0511533, enacted in 2005, is a measure under the Customs Act 1901 designed to facilitate tariff concessions for certain imported goods. The instrument was introduced to address the need for streamlined customs duty processes for specific goods, ensuring that Australian importers benefit from reduced duty rates where applicable. The instrument was enacted by the Chief Executive Officer of Customs, acting under the authority granted by the Customs Act. The policy objective is to provide tariff relief on certain goods by applying lower customs duty rates, thereby supporting the economic interests of importers and potentially enhancing competitiveness in the relevant markets. The instrument was introduced following an application from Independent Tyre Distributors, and following consultation, no objections were raised against the concession.
Scope and Application
The Tariff Concession Instrument No. 0511533 applies to specific goods that are the subject of an application for a Tariff Concession Order (TCO) under Part XVA of the Customs Act 1901. The Act enables the Chief Executive Officer of Customs (CEO) to apply a lower rate of customs duty on goods that are eligible for a TCO, provided that no substitutable goods are produced in Australia in the ordinary course of business. The CEO must assess the application against the core criteria, including ensuring that the goods are not specified in section 269SJ of the Act, which outlines goods that cannot be subject to a TCO. The application process also involves publishing a notice in the Gazette to invite submissions from interested parties, although in this instance, no submissions were received. The TCO No. 0511533 specifically applies to certain tyres that have a duty rate of free, compared to the general rate of 5%, and this order came into effect on the date the application was lodged, 02 September 2005. The application of the TCO does not disadvantage any person other than the Commonwealth and does not impose any liabilities on individuals or entities, although it does provide benefits to importers by allowing them to apply for a refund of duty on goods imported since the TCO's effective date.
Key Provisions
The primary sections of the Tariff Concession Instrument No. 0511533, as explained in the document, pertain to the granting of tariff concessions under the Customs Act 1901. Section 269F allows individuals to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) concerning specific goods. Section 269C stipulates the core criteria for an application to be approved, notably that no substitutable goods should be produced in Australia at the time the application is submitted. Furthermore, section 269P(3) mandates that if the CEO is convinced the application meets the core criteria, a written TCO must be issued, declaring the goods to which a specific item in the Customs Tariff Act 1995 applies.
The obligations imposed by the Act on the parties involved are primarily directed towards ensuring that the TCO process is transparent and accessible. The CEO must, as per subsection 269K(1), publish a notice in the Gazette inviting any interested parties to submit their views on the proposed TCO. This ensures that the process is open and considers any potential objections. Additionally, the CEO is required to decide whether the application meets the criteria set forth in section 269C, which includes verifying that no substitutable goods are produced in Australia.
The Act also outlines consequences for breaches, although the specific penalties are not detailed in the provided text. In general, under Australian law, breaches of customs regulations can result in both civil and criminal penalties. Civil penalties might include fines, while criminal penalties could involve imprisonment. However, the exact nature and extent of these penalties would depend on the specifics of the breach and the relevant provisions of the Customs Act 1901 and any other applicable legislation. In the context of this particular TCO, the document notes that the order does not impose any liabilities on any person, ensuring that no existing rights or obligations are adversely affected by its implementation.