EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0515342
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.
Humboldt Wedag Australia Pty Ltd applied for a TCO in respect of certain stud lined press rollers on 4 November 2005.
Instrument
TCO No 0515342 was made on 03 February 2006. It declares that those certain stud lined press rollers 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. 0515342 is taken to have come into force on 4 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 Instrument No. 0515342, enacted in 2006 under the Customs Act 1901, was introduced to provide tariff concessions for specific goods, addressing the gap where no substitutable goods were produced in Australia. This instrument allows for the application of a lower rate of customs duty for goods that meet certain criteria, facilitating access to these goods for importers and potentially boosting trade and industry within Australia. The instrument was developed by the Chief Executive Officer of Customs, following an application by Humboldt Wedag Australia Pty Ltd for tariff concessions on certain stud lined press rollers. The policy objective of this legislation is to support Australian industries by reducing the cost of importing specific goods, thereby enhancing competitiveness and accessibility for businesses relying on these imports.
The instrument was enacted by the Parliament of Australia and came into effect on the date the application was lodged, 4 November 2005. The process involved publishing a notice in the Gazette inviting any interested parties to submit objections, though no submissions were received. The concessions provided by the Tariff Concession Instrument do not disadvantage any person or impose new liabilities, ensuring that the rights of importers are beneficially affected. Importers can apply for refunds of duty on goods imported since the effective date of the concession, further promoting fair trade practices.
Scope and Application
The Tariff Concession Instrument No. 0515342 under the Customs Act 1901 applies to specific goods, namely certain stud lined press rollers, for which a Tariff Concession Order (TCO) was granted to Humboldt Wedag Australia Pty Ltd. This legislation pertains to entities involved in the import of these specified goods. The Act provides a mechanism through which an application can be made to the Chief Executive Officer of Customs (CEO) for a concession on customs duties, provided the goods in question do not have substitutable equivalents produced in Australia and the application meets the core criteria outlined in the Act. The geographic reach of this legislation is national, as it operates under the framework of the Commonwealth of Australia. The legislation does not disadvantage any person, including importers, who were already importing these goods at the time of the application for the TCO, and importers can apply for a refund of duty on goods imported since the day the TCO was taken to have come into force. The Act allows for the extension of its application through subordinate instruments, which may further detail the specific conditions and processes for administering tariff concessions.
Key Provisions
The Customs Act 1901, under Part XVA, provides a framework for the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO) (s 269F). When an application for a TCO is submitted, the CEO must first ensure it pertains to goods that are not listed in section 269SJ, which outlines the goods ineligible for TCOs. If the application is valid, the CEO must assess whether it meets the core criteria, which are outlined in section 269C. This requires the CEO to determine if, on the day the application was lodged, no substitutable goods were being produced in Australia in the ordinary course of business. Definitions for key terms such as 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are provided in sections 269D, 269E, and 269B, respectively.
The obligations imposed by the Act on parties or entities it governs include ensuring that the application for a TCO is valid and meets the core criteria. The CEO is mandated to publish a notice in the Gazette inviting submissions if any party believes the TCO should not be granted (s 269K(1)). The application process requires the CEO to conduct a thorough review to ensure that no substitutable goods are being produced in Australia. Additionally, the CEO must ensure that the TCO does not disadvantage any person or impose liabilities on any person in respect of anything done or omitted to be done before the date of registration (s 269S(1)).
The Customs Act 1901 also outlines the penalties and consequences for non-compliance with the provisions of a TCO. If a party breaches the terms of a TCO, they may be subject to civil or criminal penalties as stipulated under the Customs Act. The maximum penalties can include fines and, in severe cases, imprisonment. For example, any person who knowingly makes a false statement or representation in an application for a TCO could face significant penalties. The specific penalties depend on the nature and severity of the breach, with the Act providing for both civil and criminal sanctions to ensure compliance and uphold the integrity of the tariff concession scheme.