EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0515343
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 forged press rollers on 04 November 2005.
Instrument
TCO No 0515343 was made on 30 January 2006. It declares that those certain forged 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. 0515343 is taken to have come into force on 04 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 Customs Act 1901 was enacted to regulate the importation and exportation of goods in Australia, and to establish a system for collecting customs duties and other charges. The Act provides for the making of Tariff Concession Orders (TCOs) to reduce or eliminate customs duty on certain imported goods, subject to specific criteria. The Tariff Concession Instrument No. 0515343, made under the Customs Act, addresses the need to provide tariff concessions for certain forged press rollers, ensuring that Australian industries do not face prohibitive costs for essential machinery and equipment. The instrument was enacted by the Chief Executive Officer of Customs, following a valid application by Humboldt Wedag Australia Pty Ltd, and is effective from the date of the application, 4 November 2005. The policy objective is to facilitate the importation of these goods by reducing the duty rate to zero, thereby supporting industry needs without imposing any liabilities on persons other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0515343, issued under the Customs Act 1901, applies specifically to the concession of customs duty rates for certain forged press rollers imported by Humboldt Wedag Australia Pty Ltd. The Act allows for the Chief Executive Officer of Customs to grant Tariff Concession Orders (TCOs) to reduce the duty on goods provided certain criteria are met, including the absence of substitutable goods produced in Australia. The TCO applies to the named goods specified in the instrument and takes effect from the date the application was lodged. This legislation pertains to entities or individuals involved in the importation of these specific goods, thus directly affecting the importation process and duty obligations of importers. The scope of the Act extends nationally, as it is a Commonwealth instrument. Notably, the Act does not disadvantage any person's rights or impose liabilities for actions taken prior to the instrument's registration, and it allows for potential duty refunds for importers of the affected goods since the effective date of the TCO. The application and effects of the TCO can be further detailed or modified through subordinate instruments as necessary.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0515343 are sections 269C, 269F, 269K, and 269P of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of certain goods. If the application meets the core criteria set out in section 269C, the CEO must make a TCO, as per section 269P. Section 269K requires the CEO to publish a notice in the Gazette inviting submissions from any interested parties as soon as practicable after accepting a TCO application as valid. The TCO in question was made under these provisions, declaring that certain forged press rollers are subject to a zero-rate duty, down from the general rate of 5%.
The obligations imposed by this Act on the parties involved primarily concern the application and assessment process for TCOs. An applicant must ensure their application meets the core criteria, specifically that no substitutable goods are produced in Australia, as outlined in section 269C. The CEO of Customs is obligated to assess each application against these criteria and, if satisfied, make a written TCO. Additionally, the CEO must publish a notice in the Gazette under section 269K, inviting any interested parties to submit objections to the TCO. The CEO did not receive any submissions for TCO No. 0515343, indicating no objections were raised.
Under the Customs Act 1901, breaches or non-compliance with the provisions related to TCOs can lead to various civil and criminal consequences. For instance, if a person knowingly provides false or misleading information in a TCO application, they could face penalties for fraud or misleading or deceptive conduct. The specific penalties are not detailed in the provided text but generally can include substantial fines or imprisonment, depending on the severity of the offence. The Act does not specify the maximum penalties for breaches of TCO provisions, but penalties for related offences under the Customs Act can be severe, reflecting the importance of compliance with customs regulations. The rights of importers are also protected, allowing them to apply for refunds of duty on goods imported since the TCO came into effect, which was on the date of the application, 4 November 2005.