EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516025
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.
Visy Paper Pty Ltd T/A Visy Recycling applied for a TCO in respect of certain semi rigid sheet winders on 15 November 2005.
Instrument
TCO No 0516025 was made on 30 January 2006. It declares that those certain semi rigid sheet winders 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. 0516025 is taken to have come into force on 15 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 within Australia, ensuring compliance with customs laws and facilitating trade. The Tariff Concession Instrument No. 0516025, introduced in 2006, addresses the need for a streamlined process to provide tariff concessions on specific goods, thereby promoting economic efficiency and facilitating smoother trade practices. This instrument was developed under the authority of the Chief Executive Officer of Customs and aims to provide relief from certain customs duties on goods not produced domestically, thereby encouraging trade and supporting industries that rely on imported materials. The policy objective is to balance the need for revenue generation through customs duties with the broader economic goal of supporting Australian industries by reducing the cost of essential imports.
Scope and Application
The Customs Act 1901 governs the process of applying for and making Tariff Concession Orders (TCOs) under Part XVA, which are orders that allow for a lower rate of customs duty on specific goods. Any person can apply to the Chief Executive Officer of Customs for a TCO if the goods in question are not specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. The CEO must determine if the application meets the core criteria, which is primarily based on whether substitutable goods are produced in Australia in the ordinary course of business. If the application meets these criteria, the CEO issues a written TCO, specifying the applicable item in Schedule 4 of the Customs Tariff Act 1995. The TCO applies retroactively to the date the application was lodged, and it does not affect any existing rights or impose liabilities on any person except the Commonwealth. The TCO benefits importers by allowing them to apply for a refund of duty on goods imported since the TCO’s effective date.
Key Provisions
The Tariff Concession Instrument No. 0516025, made under the Customs Act 1901 (the Act), pertains to the application of tariff concessions on specific goods, namely certain semi-rigid sheet winders. Section 269F of the Act allows for an application to be made to the Chief Executive Officer of Customs (the CEO) for a Tariff Concession Order (TCO). If the application is deemed valid and meets the core criteria outlined in sections 269C, 269D, and 269E, the CEO is obligated to issue a TCO. Section 269P(3) mandates that the CEO must then make a written order specifying the goods and the applicable tariff concessions.
The obligations imposed by this Act on the parties involved include the requirement for the CEO to evaluate the application against the stipulated criteria, and for applicants to ensure their submissions meet the legislative requirements to avoid rejection. The CEO's obligations also encompass publishing a notice in the Gazette (subsection 269K(1)), inviting public submissions, and making a decision based on any received submissions. Additionally, the CEO must consider the definitions of terms such as 'goods produced in Australia', 'ordinary course of business', and 'substitutable goods' as per sections 269D and 269E.
Non-compliance with the provisions of the Customs Act 1901 and associated regulations may result in civil or criminal consequences. While the specific offences, penalties, or consequences are not detailed in the provided text, it is known that breaches of customs laws can lead to significant penalties under the Customs Act. For example, knowingly making a false statement in a customs document can attract criminal penalties, including fines and imprisonment. Furthermore, failure to comply with TCOs or any other customs regulations can result in financial penalties, confiscation of goods, or other enforcement actions as determined by the relevant authorities.