EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0513659
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.
Almax Aluminium Pty Ltd applied for a TCO in respect of certain Aluminium Extrusions Stackers on 7 October 2005.
Instrument
TCO No 0513659 was made on 3 January 2006. It declares that those certain Aluminium Extrusions Stackers 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 0%.
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. 0513659 is taken to have come into force on 7 October 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 enacted by the Parliament of Australia to provide for the regulation of customs and excise, including the imposition of tariffs on imported goods. The Act establishes a framework under which Tariff Concession Orders (TCOs) can be made to lower the rate of customs duty on certain goods. This was introduced to address the need for targeted tariff reductions that could stimulate specific industries or sectors by making imported goods more competitively priced with locally produced alternatives. Instrument No. 0513659 under this Act, made on 3 January 2006, was introduced in response to an application by Almax Aluminium Pty Ltd for a tariff concession on Aluminium Extrusions Stackers. The policy objective was to ensure that if no substitutable goods were produced in Australia, a zero percent duty rate would apply to these specific goods, thereby reducing the cost burden on importers and potentially stimulating demand and investment in the relevant sector.
Scope and Application
The Tariff Concession Instrument No. 0513659 under the Customs Act 1901 applies to goods for which a Tariff Concession Order (TCO) has been granted, specifically in this case, certain Aluminium Extrusions Stackers. The instrument targets entities such as importers or other stakeholders who deal with these specific goods, thereby providing them with a lower rate of customs duty. The legislation is applicable nationally, as it is an instrument of the Commonwealth and operates under the Customs Act 1901. The geographic reach of the Act extends across Australia, affecting all importers and entities involved in the trade of the specified goods. The Act excludes certain goods from being subject to a TCO as specified in section 269SJ of the Act, which lists those goods that cannot be subject to a tariff concession. Additionally, the Act allows for the extension or restriction of its application through subordinate instruments, which can provide further clarity or conditions for the concession. The commencement of the TCO is deemed to occur on the day the application was lodged, ensuring that any duties incurred prior to this date remain unaffected by the concession.
Key Provisions
The Tariff Concession Order (TCO) No. 0513659, which was implemented under the Customs Act 1901, applies to specific Aluminium Extrusions Stackers, setting their customs duty rate to 0% (Section 269P(3)). This concession is contingent on the Chief Executive Officer of Customs (CEO) determining that no substitutable goods are produced in Australia, as required by Section 269C. The application for this concession was submitted by Almax Aluminium Pty Ltd on 7 October 2005 and was published in the Gazette as mandated by Subsection 269K(1).
The Act imposes several obligations on the parties involved. The CEO must assess whether the application for a TCO meets the core criteria, which include ensuring that the goods in question are not of the type specified in Section 269SJ of the Act and that no substitutable goods are produced in Australia (Section 269B and Section 269C). Additionally, the CEO is required to publish a notice in the Gazette, inviting any interested parties to submit objections or submissions if they believe the TCO should not be granted (Subsection 269K(1)). Almax Aluminium Pty Ltd, as the applicant, must ensure that their application is complete and meets all criteria set out in the Act.
The Customs Act 1901 also outlines potential consequences for non-compliance or misuse of the TCO provisions. While the Act does not explicitly detail offences or penalties in the context of TCOs, breaches of other sections of the Act, such as fraudulent applications or misrepresentation of facts, could lead to civil or criminal penalties. These penalties may include fines and imprisonment, as per the general provisions of the Act and related regulations. The precise penalties would depend on the nature and severity of the breach, but they can be significant, reflecting the seriousness of circumventing customs regulations.