EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0511819
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.
In Store Technologies Pty Ltd applied for a TCO in respect of certain anti-theft alarms on 07 September 2005.
Instrument
TCO No 0511819 was made on 25 November 2005. It declares that those certain anti-theft alarms 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. 0511819 is taken to have come into force on 07 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 Customs Act 1901, enacted by the Australian Parliament, provides a framework for the imposition of customs duties on imported goods. The Act includes provisions for Tariff Concession Orders (TCOs), which allow for the reduction or exemption of customs duties on specific goods under certain conditions. This was introduced to address the need for flexibility in tariff applications to support various economic and trade policy objectives. The Explanatory Statement for Tariff Concession Instrument No. 0511819, made on 25 November 2005, clarifies the process and criteria for such concessions, ensuring that the application and implementation of TCOs are transparent and subject to public consultation. The policy objective is to facilitate trade by reducing the duty burden on certain goods, thereby encouraging their import and benefiting consumers and businesses.
Scope and Application
The Customs Act 1901, specifically under Part XVA, governs the process for Tariff Concession Orders (TCOs) which are applicable to goods subject to a lower rate of customs duty. This Act applies to any person or entity that may apply for a TCO concerning goods that are not specified in section 269SJ, which lists goods ineligible for a TCO. The application process involves meeting the core criteria set forth in sections 269C and 269D, which require that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The geographic reach of this Act is nationwide, as it is a Commonwealth Act, and its application is facilitated by the Chief Executive Officer of Customs. The Act does not impose any liabilities on persons other than the Commonwealth and does not affect the rights of any person as at the date of registration. The TCO in question, No. 0511819, pertains to certain anti-theft alarms and became effective on 07 September 2005, the date the application was lodged. This TCO grants a free duty rate on these specified goods, which contrasts with the general rate of 5% as per the Customs Tariff Act 1995.
Key Provisions
The primary sections of Tariff Concession Instrument No. 0511819, made under the Customs Act 1901, are section 269F, which allows for applications to be made for a Tariff Concession Order (TCO); section 269C, which outlines the core criteria for TCO applications; and section 269P(3), which mandates the making of a TCO by the Chief Executive Officer (CEO) of Customs if the core criteria are met. Specifically, section 269F enables a person to apply for a TCO in respect of goods, while section 269C stipulates that a TCO application meets the core criteria if, on the day of application, no substitutable goods were produced in Australia in the ordinary course of business. Section 269P(3) then requires the CEO to make a written order if satisfied that the application meets the core criteria. In this particular case, Store Technologies Pty Ltd applied for a TCO on 7 September 2005, and the CEO made TCO No. 0511819 on 25 November 2005, declaring that certain anti-theft alarms are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies.
The obligations and requirements imposed by the Act on the parties involved include the necessity for the CEO to assess TCO applications against the core criteria as specified in section 269C. The CEO must ensure that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. If these criteria are met, the CEO must make a written TCO. Additionally, the CEO is required to publish a notice in the Gazette, as per subsection 269K(1), inviting any interested parties to submit objections to the TCO. In this case, the CEO did not receive any submissions. Furthermore, the TCO is deemed to have come into force on the day the application was lodged, under subsection 269S(1), meaning that TCO No. 0511819 is effective from 7 September 2005.
There are no explicit offences or penalties outlined in the text for breaches of the provisions under this specific TCO. However, non-compliance with the requirements or failure to adhere to the provisions of the Customs Act 1901 generally could potentially lead to civil or criminal consequences. These may include fines or imprisonment, depending on the severity of the breach. The specific penalties would be determined by other sections of the Customs Act 1901 and related legislation, but these are not detailed within this particular TCO. The rights of importers are beneficially affected, and they can apply for a refund of duty on goods imported since the TCO came into force, as per paragraph 126(1)(r) of the Regulations. Importantly, the TCO does not impose any liabilities on any person.