EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0515957
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.
Bremner Glass Equipment Pty Ltd applied for a TCO in respect of certain plate glass handlers on 11 November 2005.
Instrument
TCO No 0515957 was made on 06 February 2006. It declares that those certain plate glass handlers 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. 0515957 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 Australian Parliament, provides a framework for the administration of customs and excise duties. Specifically, Part XVA of the Act introduces a scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (CEO) to grant lower rates of customs duty on certain goods. The act was designed to address the problem of ensuring that Australian businesses are not unduly burdened by customs duties when no suitable domestic alternatives exist. Tariff Concession Instrument No. 0515957, made under the Customs Act 1901, aims to facilitate this by providing tariff concessions to Bremner Glass Equipment Pty Ltd for their plate glass handlers, reducing the duty rate from the general rate of 5% to free. The instrument was enacted to ensure that no substitutable goods were produced in Australia, thereby satisfying the core criteria outlined in the Act. The policy objective is to support Australian businesses by reducing import costs where domestic alternatives are not available.
Scope and Application
The Tariff Concession Instrument No. 0515957, made under Part XVA of the Customs Act 1901, applies to individuals or entities seeking tariff concessions for specific goods imported into Australia. This Act is relevant to the Chief Executive Officer of Customs who is responsible for determining whether an application for a Tariff Concession Order (TCO) meets the specified criteria, and if so, issuing the order to apply a lower rate of customs duty on the goods. The legislation applies nationally across Australia, impacting the importation of goods subject to a TCO. Notably, the Act excludes certain goods from eligibility for a TCO as specified in section 269SJ of the Customs Act 1901, and it does not affect the rights of any person as at the date of registration to disadvantage them or impose new liabilities. The Act also provides for the potential for subordinate instruments to further define or extend its application, although specific details are not outlined in the explanatory statement.
Key Provisions
The Customs Act 1901 includes provisions for Tariff Concession Orders (TCOs) under Part XVA, which allow for reduced customs duties on certain goods. Section 269F enables an individual to apply to the Chief Executive Officer of Customs (CEO) for a TCO. If the application pertains to goods that are not specified in section 269SJ, the CEO must determine if the application meets the core criteria as outlined in section 269C. This criterion is satisfied if, on the date the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business, with definitions provided in sections 269D and 269E. If the CEO is satisfied with the application, they must issue a written order, a TCO, specifying the goods and the applicable duty rate from Schedule 4 to the Customs Tariff Act 1995.
Obligations under the Act include the requirement for the CEO to publish a notice in the Gazette after accepting a TCO application as valid, inviting submissions from any interested parties who believe the TCO should not be made. This is mandated by subsection 269K(1) of the Act. In the case of TCO No. 0515957, no submissions were received in response to the published notice. The Act also mandates that a TCO is considered to come into force on the date the application for the TCO was lodged, as per subsection 269S(1). TCO No. 0515957, relating to certain plate glass handlers, is deemed to have come into force on 11 November 2005.
The TCO No. 0515957, made on 6 February 2006, declares that certain plate glass handlers are subject to a zero duty rate under item 50 of Schedule 4 to the Customs Tariff Act 1995, following confirmation by the CEO that no substitutable goods were produced in Australia. This TCO does not affect the rights of any person other than the Commonwealth as of the date of registration, ensuring that it does not disadvantage or impose liabilities on such persons regarding actions taken before the date of registration. Importers of the specified goods will benefit from this TCO by being able to apply for a refund of duty on goods imported since the TCO came into force, under paragraph 126(1)(r) of the Regulations. Furthermore, the TCO does not impose any liabilities on any person.
There are no specific offences, penalties, or civil or criminal consequences outlined in the Act or explanatory statement for breaches related to TCOs. However, general provisions of the Customs Act 1901 and associated regulations apply, which may include offences such as providing false or misleading information in an application, which could result in fines or imprisonment. The specific penalties for such offences would depend on the nature and severity of the breach, as defined by other sections of the Act and relevant regulations.