EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0512079
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.
OBM International Trade Services Pty Ltd applied for a TCO in respect of certain liquid propylene vertical storage tanks on 8 September 2005.
Instrument
TCO No 0512079 was made on 25 November 2005. It declares that those certain liquid propylene vertical storage tanks 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.0512079 is taken to have come into force on 8 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 was amended by the Tariff Concession Instrument No. 0512079, enacted in 2005, to introduce a scheme whereby Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (CEO) for specific goods, providing a lower rate of customs duty. The policy objective of this legislation is to facilitate international trade by offering tariff relief on goods that are not produced in Australia, thus encouraging imports and potentially reducing costs for businesses and consumers. The CEO has the authority to assess and approve applications for TCOs, provided they meet the core criteria outlined in the Act, such as the absence of substitutable goods produced domestically. This instrument was introduced to address the gap in the availability of certain goods in the Australian market, ensuring that businesses can access necessary products without the burden of high customs duties.
Scope and Application
The Tariff Concession Instrument No. 0512079 under the Customs Act 1901 applies to goods specified in the instrument, which are certain liquid propylene vertical storage tanks. It is relevant to entities and individuals involved in the importation of these goods, providing them with tariff concessions. The application of this Act is nationwide, as it is a Commonwealth Act, and thus it has a national jurisdictional reach. The act does not specify any exclusions or exemptions other than those outlined in section 269SJ of the Act, which states that certain goods cannot be subject to a Tariff Concession Order. The Act allows for the extension of its application through subordinate instruments, such as the Customs Tariff Act 1995, which specifies the tariff items applicable to the goods under the concession. The instrument itself was made on 25 November 2005 and is taken to have come into force on the date the application was lodged, 8 September 2005, without affecting any pre-existing rights or imposing new liabilities.
Key Provisions
The Tariff Concession Instrument No. 0512079 pertains to the Customs Act 1901 and introduces a Tariff Concession Order (TCO) concerning certain liquid propylene vertical storage tanks. Under section 269F (1), the Chief Executive Officer of Customs (CEO) can grant a TCO if the application for such concession meets specific criteria. For instance, section 269C stipulates that a TCO application is valid if no substitutable goods were produced in Australia at the time the application was lodged, as defined by section 269D and 269E. This means that if the goods in question were not being produced domestically in a regular business context, the application may be eligible for a concession.
The obligations imposed on parties by this Act are primarily on the CEO, who must review the application and determine if it meets the outlined criteria (section 269C). If satisfied, the CEO is mandated to make a written order (section 269P(3)) and publish a notice in the Gazette inviting submissions from any interested parties (subsection 269K(1)). However, in this instance, no submissions were received. The TCO comes into effect on the date the application was lodged (subsection 269S(1)), which was 8 September 2005 for this particular order.
Failure to comply with the requirements set forth by the Customs Act 1901 can result in various consequences. Although the explanatory statement does not detail specific offences or penalties, breaches of customs regulations typically lead to administrative actions such as fines or other monetary penalties. In severe cases, criminal charges may be brought against the offenders, potentially leading to imprisonment. The exact penalties would depend on the specific nature of the breach and the discretion of the court or relevant authority.