EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0515322
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.
Cooltemp Pty Ltd applied for a TCO in respect of certain twin tube automotive evaporators assembly core builders on 03 November 2005.
Instrument
TCO No 0515322 was made on 23 January 2006. It declares that those certain twin tube automotive evaporators assembly core builders 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. 0515322 is taken to have come into force on 03 November 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. 0515322, made under the Customs Act 1901, addresses the issue of applying tariff concessions to certain goods, specifically twin tube automotive evaporators assembly core builders. Enacted in 2006 by the Chief Executive Officer of Customs, this legislation aims to provide relief from customs duty for goods that are not produced domestically, thus ensuring fair competition and incentivising imports of such goods. The instrument was introduced to streamline the process by which goods can receive tariff concessions, ensuring that no substitutable goods are produced in Australia, thereby maintaining a competitive market. The primary policy objective is to encourage the importation of goods that are not domestically produced, thus benefiting importers by potentially reducing their duty costs.
Scope and Application
The Tariff Concession Instrument No. 0515322, issued under the Customs Act 1901, applies to the specific goods known as twin tube automotive evaporators assembly core builders, which are now subject to a zero rate of duty as per item 50 of Schedule 4 to the Customs Tariff Act 1995. The Act allows for Tariff Concession Orders (TCOs) to be made by the Chief Executive Officer of Customs (CEO) for goods not specified in section 269SJ of the Act, provided that the application meets the core criteria outlined in sections 269C, 269D, and 269E of the Act. The CEO is mandated to assess whether no substitutable goods were produced in Australia in the ordinary course of business at the time of the application. The instrument is effective from the date of the application, 3 November 2005, and does not disadvantage or impose liabilities on any person in respect of actions taken before the registration date. The rights of importers are beneficially affected, allowing them to apply for a refund of duty on goods imported since the effective date of the TCO. This instrument is limited to the specific goods mentioned and does not affect any other goods or industries.
Key Provisions
The Tariff Concession Instrument No. 0515322 (the Instrument) under the Customs Act 1901 (the Act) provides for a lower rate of customs duty on certain twin tube automotive evaporators assembly core builders. Specifically, section 269P(3) of the Act mandates that if the Chief Executive Officer of Customs (the CEO) is satisfied that an application for a Tariff Concession Order (TCO) meets the core criteria, the CEO must make a written order (a TCO) applying a reduced rate of duty to the specified goods. In this case, the CEO made TCO No. 0515322 on 23 January 2006, declaring that the certain twin tube automotive evaporators assembly core builders are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies. The general duty on these goods is 5%, but the rate for goods subject to the TCO is free.
The Act imposes certain obligations on the parties it governs. Section 269C of the Act stipulates that a TCO application meets the core criteria if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269B defines 'goods produced in Australia', 'ordinary course of business', and 'substitutable goods', which are crucial for determining the eligibility for a TCO. Additionally, the CEO is required to publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application, inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. In this case, the CEO did not receive any submissions in response to the invitation.
For breaches of the provisions under the Customs Act 1901, there are potential offences, penalties, and consequences. However, the Explanatory Statement does not provide specific details about the offences, penalties, or civil/criminal consequences for breaches related to TCO applications. Typically, the Act includes provisions for offences and penalties for non-compliance with customs duties and related regulations, but these specifics are not detailed in the provided text. Importers, however, may apply for a refund of duty on goods imported since the day the TCO is taken to have come into force, under paragraph 126(1)(r) of the Regulations. The TCO does not impose any liabilities on any person.