EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516028
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.
Bluescope Steel Limited applied for a TCO in respect of certain refractory insulating board on 15 November 2005.
Instrument
TCO No 0516028 was made on 13 February 2006. It declares that the certain refractory insulating board is a product 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. 0516028 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 facilitate and regulate the import and export of goods in Australia. It was introduced to address the need for a comprehensive framework governing customs duties and other regulations related to the movement of goods across Australian borders. The Tariff Concession Instrument No. 0516028, which was enacted in 2006, aims to provide relief to specific goods by reducing or eliminating customs duties under certain conditions. This instrument is part of the Customs Act 1901, managed by the Parliament of Australia, and its policy objective is to support Australian industries by lowering the cost of importing certain goods, thereby encouraging competition and economic growth.
Scope and Application
The Tariff Concession Instrument No. 0516028 under the Customs Act 1901 applies to the goods specified in the instrument, which in this case are certain refractory insulating boards. The instrument was made by the Chief Executive Officer of Customs (CEO) upon determining that no substitutable goods were produced in Australia, thereby satisfying the core criteria outlined in section 269C of the Act. The CEO must assess applications for Tariff Concession Orders (TCO) against these criteria, and if satisfied, must make a written order as specified in section 269P(3). This instrument is effective from the date the application was lodged, as per subsection 269S(1), which in this case is 15 November 2005. The TCO is designed to provide a lower rate of customs duty, in this instance a reduction from a general rate of 5% to free, thereby benefiting the rights of importers who can apply for a refund of duty on goods imported since the effective date. The CEO's decision is final unless there are submissions contesting the order, which did not occur in this instance.
Key Provisions
The primary operative sections of Tariff Concession Instrument No. 0516028, under the Customs Act 1901, pertain to the establishment of Tariff Concession Orders (TCOs). Specifically, section 269C stipulates that a TCO application meets the core criteria if, on the date the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269F allows any person to apply to the Chief Executive Officer (CEO) of Customs for a TCO in respect of goods. If the CEO is satisfied that the application does not involve goods listed in section 269SJ, which are ineligible for a TCO, they must determine if the application meets the core criteria (section 269P(3)). If satisfied, the CEO must issue a written order declaring that the goods subject to the TCO application are eligible for a specified item in Schedule 4 of the Customs Tariff Act 1995.
The Act imposes several obligations on the parties involved. The CEO must assess whether the TCO application meets the core criteria, which involves confirming that no substitutable goods were produced in Australia. Additionally, section 269K(1) requires the CEO to publish a notice in the Gazette inviting any interested parties to lodge submissions if they believe the TCO should not be made. If no submissions are received, the CEO proceeds with issuing the TCO. Furthermore, the TCO must be registered, and it is effective from the date the application was lodged, as outlined in section 269S(1). Importers of the specified goods are granted the right to apply for a refund of duty from the date the TCO is taken to have come into force, under paragraph 126(1)(r) of the Regulations.
There are no specific offences, penalties, or civil/criminal consequences outlined in the explanatory statement for breach of the provisions of Tariff Concession Instrument No. 0516028. However, non-compliance with the terms of the TCO or failure to adhere to the application process could result in the denial of the TCO, which would mean the affected goods would not benefit from the reduced customs duty. Any disputes or challenges to the TCO would likely be addressed under the general provisions of the Customs Act 1901, which may include penalties for false statements or misrepresentations made in the application process.