EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0513211
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.
Australian Bale Press Company Pty Limited applied for a TCO in respect of certain waste paper from cardboard separators on 29 September 2005.
Instrument
TCO No 0513211 was made on 23 December 2005. It declares that those certain waste paper from cardboard separators 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. 0513211 is taken to have come into force on 29 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 Order No. 0513211 was enacted under the Customs Act 1901 to address the need for tariff concessions on specific goods, ensuring they are accessible and economically viable for businesses. This legislation, introduced by the Chief Executive Officer of Customs, provides a lower rate of customs duty on certain waste paper from cardboard separators, as determined by the CEO. The objective of this instrument is to facilitate the importation of these goods by Australian Bale Press Company Pty Limited, provided that no substitutable goods are produced in Australia, thereby supporting trade and economic efficiency. The enactment of this TCO is intended to benefit importers by potentially allowing them to apply for a refund of duty on imported goods, as outlined in the Customs Regulations.
This instrument was developed in accordance with the requirements of the Customs Act 1901, ensuring that the application for a TCO was published in the Gazette with an invitation for submissions, although none were received. The TCO came into force on the date the application was lodged, ensuring that it does not impose any liabilities or disadvantages on any person other than the Commonwealth. This approach aligns with the policy objective of the Customs Act 1901 to streamline customs processes and support fair trade practices.
Scope and Application
The Customs Act 1901, through its Part XVA, establishes a scheme under which the Chief Executive Officer of Customs can issue Tariff Concession Orders (TCOs), which apply a lower rate of customs duty to specific goods. These orders are applicable to goods specified in the application, provided the application meets the core criteria outlined in section 269C of the Act. This means that the goods must not have any substitutable equivalents produced in Australia in the ordinary course of business. The scope of the Act extends to any person or entity that seeks a TCO for goods they wish to import, provided the goods do not fall within the exclusions listed in section 269SJ. The Act's jurisdiction is national, impacting all importers across Australia. Notably, the Act does not disadvantage any person by affecting their rights as at the date of registration for TCOs, nor does it impose any liabilities on persons other than the Commonwealth. The commencement of a TCO is effective from the date the application is lodged, as stipulated in section 269S(1) of the Act, and in the case of TCO No. 0513211, this was on 29 September 2005. The Act allows for the expansion of its application through subordinate instruments, ensuring its relevance and adaptability to changes in trade practices and goods.
Key Provisions
The main sections of Tariff Concession Instrument No. 0513211 outline the process and requirements for granting tariff concessions on certain goods under the Customs Act 1901. Section 269F allows an application for a Tariff Concession Order (TCO) to be made to the Chief Executive Officer of Customs (CEO) if the goods are not specified in section 269SJ. The CEO must then assess whether the application meets the core criteria, which includes ensuring that no substitutable goods were produced in Australia on the day the application was lodged (section 269C). If these criteria are met, a TCO is issued, declaring that the goods are subject to a specific item in Schedule 4 of the Customs Tariff Act 1995, which may result in a lower rate of duty (section 269P(3)). For the waste paper from cardboard separators, this resulted in a duty rate of free, down from the general rate of 5%.
Obligations and requirements imposed by the Act on parties include the application process for a TCO, as well as the CEO's duty to assess applications against the core criteria. The CEO must also publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made (subsection 269K(1)). In this case, no submissions were received, leading to the issuance of TCO No. 0513211. The Act also ensures that the TCO does not affect the rights of any person other than the Commonwealth in relation to actions taken before the date of registration (subsection 269S(1)).
The Act does not explicitly list offences or penalties for breaches of its provisions related to TCOs. However, general provisions within the Customs Act 1901 may apply, which could include fines or imprisonment for knowingly or recklessly making false statements or for any fraudulent activities related to the concession process. The specific penalties would depend on the nature and severity of the breach, as well as the provisions of other relevant legislation.