EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0513347
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.
Wilson Mining Services Pty Limited applied for a TCO in respect of certain grout hole packers on 30 September 2005.
Instrument
TCO No 0513347 was made on 23 December 2005. It declares that those certain grout hole packers 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. 0513347 is taken to have come into force on 30 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. 0513347 was enacted in 2005 as part of the Customs Act 1901, which was introduced to address the need for tariff concessions for specific goods imported into Australia. The Customs Act 1901, enacted by the Australian Parliament, aims to provide for the imposition of customs duty and other charges on imported goods and the control of the import and export of goods. This particular Instrument was made under the authority of the Chief Executive Officer of Customs, who must assess whether an application for a Tariff Concession Order (TCO) meets the core criteria, which includes the absence of substitutable goods produced in Australia. The policy objective of this Instrument was to provide a concession on the duty for certain grout hole packers, effectively reducing the general rate of duty from 5% to free, thus benefiting importers by potentially allowing them to apply for a refund of duty paid on these goods imported since the TCO came into effect.
Scope and Application
The Tariff Concession Instrument No. 0513347, made under the Customs Act 1901, applies to certain grout hole packers and is directed at persons or entities that import these goods. The act is a federal instrument, thus it has a national reach across Australia, ensuring uniform application of tariff concessions throughout the Commonwealth. This specific instrument was created to address an application by Wilson Mining Services Pty Limited, and it provides a lower rate of customs duty for these particular goods. The application of this instrument is contingent upon the core criteria specified in the Customs Act, including the non-existence of substitutable goods produced in Australia. The Act provides for the CEO of Customs to issue such concessions if certain conditions are met, and it ensures that the rights of existing importers are not adversely affected, allowing them to apply for duty refunds. The instrument does not exclude any categories of goods or entities from its application, and its scope is limited to the specific goods and conditions outlined in the instrument itself.
Key Provisions
The Customs Act 1901, under its Part XVA, provides a framework for the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). When a person applies for a TCO in relation to certain goods under section 269F, the CEO assesses whether the application complies with the core criteria set out in section 269C. Specifically, this means that on the date the application is lodged, no substitutable goods can be produced in Australia in the ordinary course of business (section 269C). 'Substitutable goods' are defined in section 269B as goods that are produced in Australia and have uses or designs similar to those of the goods for which the TCO is sought. If the CEO determines that the application meets these criteria, they are required to issue a TCO under section 269P(3), which declares that the specified goods are subject to a lower rate of duty as outlined in the Customs Tariff Act 1995.
The obligations imposed on the parties governed by this legislation include the requirement for applicants to ensure that their applications meet the core criteria as specified in the Act. This involves providing sufficient evidence that no substitutable goods are produced in Australia. The CEO, on the other hand, must promptly assess applications, make necessary inquiries, and issue a TCO if the criteria are met. Additionally, the CEO is obligated to publish notices in the Gazette inviting submissions from any interested parties who may wish to oppose the granting of a TCO, as stipulated in section 269K(1). The TCO itself, once issued, declares that the specified goods are subject to the reduced duty rate outlined in the Customs Tariff Act 1995.
The Customs Act 1901 does not explicitly outline specific offences or penalties for breaches of the TCO provisions. However, general provisions within the Act and associated regulations may apply to any contraventions. For example, failure to comply with the requirements for duty payments or misrepresentation in applications could lead to penalties under other sections of the Act. The maximum penalties for such offences could include fines and, in severe cases, imprisonment. The precise penalties would depend on the nature and severity of the breach, as well as any relevant interpretations by the courts.
In summary, the Customs Act 1901 and its associated provisions for Tariff Concession Orders establish a clear process for reducing customs duties on certain goods, provided that the core criteria are met. The legislation imposes obligations on applicants to provide accurate information and on the CEO to assess applications and issue TCOs where appropriate. While specific offences and penalties for breaches are not detailed in the explanatory statement, general penalties under the Act and related regulations would apply to any contraventions.