EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0515954
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.
Melwire Pty Limited applied for a TCO in respect of certain stainless steel wire on 11 November 2005.
Instrument
TCO No 0515954 was made on 30 January 2006. It declares that those certain stainless steel wires 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. 0515954 is taken to have come into force on 11 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, enacted by the Commonwealth Parliament, establishes a framework for the administration of customs and excise duties. It includes provisions for Tariff Concession Orders (TCOs), which allow for reduced customs duties on specific goods under certain conditions. This legislative instrument aims to address the gap in providing tariff relief for goods that are not domestically produced or substitutable by locally produced goods. Instrument No. 0515954, made under the Customs Act 1901, grants a tariff concession for certain stainless steel wires, reducing the customs duty rate from 5% to free, effective from the date of the application on 11 November 2005. The policy objective of this concession is to support the importation of these goods without burdening importers with excessive duties, thus potentially enhancing market competitiveness and accessibility for consumers. The enactment of this TCO aligns with the broader policy goal of facilitating trade by reducing barriers for specific imported goods.
Scope and Application
The Customs Act 1901, as supplemented by Tariff Concession Instrument No. 0515954, pertains to the application process for Tariff Concession Orders (TCO) for specified goods, in this case, certain stainless steel wires. This legislation applies to entities such as Melwire Pty Limited, which may apply for a TCO under section 269F of the Act, provided the goods in question do not fall under the exclusions outlined in section 269SJ. The application process involves the Chief Executive Officer of Customs (CEO) evaluating whether the application meets the core criteria, specifically if no substitutable goods are produced in Australia in the ordinary course of business, as defined by sections 269C, 269D, and 269E. Should the CEO determine that the core criteria are met, a TCO is issued, granting a tariff concession for the specified goods. The instrument also mandates consultation through the publication of a notice in the Gazette, inviting any interested parties to submit objections, although in this case, no submissions were received. The TCO applies nationally, with its effects commencing on the date of the application, 11 November 2005, and does not disadvantage or impose liabilities on any person for actions taken prior to its registration.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Order (TCO) No. 0515954, pertain to the Customs Act 1901 and the Customs Tariff Act 1995. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a TCO for certain goods, while Section 269C outlines the core criteria for TCO applications, requiring that no substitutable goods were produced in Australia on the day the application was lodged. Section 269P(3) mandates that if the CEO is satisfied that the application meets the core criteria, they must make a written TCO order. Under this specific TCO No. 0515954, certain stainless steel wires are declared as goods to which item 50 of Schedule 4 to the Tariff applies, resulting in a duty rate of free, as opposed to the general rate of 5%.
The obligations and requirements imposed by this Act on the parties it governs include the submission of an application by a person to the CEO of Customs (Section 269F), ensuring that the application does not involve goods specified in Section 269SJ which cannot be subject to a TCO. If the CEO is satisfied that the application meets the core criteria outlined in Section 269C, they must make a written TCO order (Section 269P(3)). Additionally, Subsection 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from any person who considers there are reasons why the TCO should not be made, although in this case, no submissions were received. The TCO itself comes into force on the day the application was lodged, as per Subsection 269S(1).
The legislation does not explicitly detail specific offences, penalties, or consequences for breaches within the TCO itself. However, the Customs Act 1901 and associated regulations may impose broader penalties for non-compliance with customs regulations. For example, under the Customs Act, offences such as the fraudulent importation or exportation of goods may result in criminal penalties, including fines and imprisonment. Similarly, the Customs Tariff Act 1995 may have provisions for penalties related to incorrect classification or valuation of goods. The maximum penalties for such offences would be determined by the respective sections of these Acts and associated regulations.