EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516324
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 steel paint line thermal regenerative oxidizers on 18 November 2005.
Instrument
TCO No 0516324 was made on 13 February 2006. It declares that those certain steel paint line thermal regenerative oxidizers 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. 0516324 is taken to have come into force on 18 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 by the Parliament of Australia to regulate the importation and exportation of goods, including the imposition of customs duties. The Tariff Concession Instrument No. 0516324, made under the authority of this Act, addresses the specific issue of providing tariff concessions for certain goods where no substitutable goods are produced in Australia. This legislation facilitates the application process for tariff concessions, ensuring that the Chief Executive Officer of Customs can assess and grant these concessions based on defined criteria, thereby supporting Australian businesses by potentially reducing the cost of importing necessary goods.
This instrument was created in response to an application from Bluescope Steel Limited for tariff concessions on certain steel paint line thermal regenerative oxidizers. The Customs Act 1901 allows for the application of reduced or free duty rates on goods not produced in Australia, promoting economic efficiency and competitiveness. The Tariff Concession Order (TCO) No. 0516324, made on 13 February 2006, effectively provides a zero duty rate on these specified oxidizers, which contrasts with the general duty rate of 5%. The objective of this legislation is to ensure that businesses can access essential imported goods at a lower cost, thus supporting industrial operations and economic activities within Australia.
Scope and Application
The Customs Act 1901, as amended, provides a framework for the imposition of tariff concession orders (TCOs) under its Part XVA. These orders, which can be applied for by any person, are issued by the Chief Executive Officer of Customs when certain conditions are met, notably the absence of substitutable goods produced in Australia. The TCO process ensures that the goods in question are not already being produced domestically in a manner that corresponds to their intended use, thereby justifying the tariff concession. In the specific case of Tariff Concession Order No. 0516324, concerning certain steel paint line thermal regenerative oxidizers, the CEO determined that no substitutable goods were produced in Australia, thus allowing the order to be made and the goods to benefit from a reduced customs duty rate. This process is further governed by the Customs Tariff Act 1995, which outlines the specific duty rates applicable to goods under TCOs. The application of TCOs is subject to national jurisdiction, affecting all entities and individuals involved in the importation of the specified goods within Australia.
Key Provisions
The Tariff Concession Instrument No. 0516324 under the Customs Act 1901 (section 269F) enables the Chief Executive Officer of Customs (CEO) to grant tariff concessions on certain goods. The CEO can make a Tariff Concession Order (TCO) if an application is made and the goods do not fall under the prohibited categories outlined in section 269SJ. For a TCO to be considered, the CEO must be satisfied that the application meets the core criteria, which include ensuring that no substitutable goods are produced in Australia on the day the application was lodged (section 269C).
The CEO must issue a written order declaring that the specified goods are eligible for the tariff concession if the core criteria are met (section 269P(3)). In this case, the CEO issued TCO No. 0516324 for certain steel paint line thermal regenerative oxidizers, which are now subject to a duty-free rate. The CEO must also publish a notice in the Gazette inviting submissions on the application, although in this instance, no submissions were received (subsection 269K(1)).
Under the Customs Act 1901, a TCO is deemed to come into force on the day the application was lodged (subsection 269S(1)). This means TCO No. 0516324 is effective as of 18 November 2005. Importantly, the TCO does not adversely affect the rights of any person as of the date of registration and does not impose any liabilities on any person except the Commonwealth (subsection 269S(2)). Importers of the affected goods can apply for a refund of duty paid on imports since the TCO came into force (paragraph 126(1)(r) of the Regulations).
In terms of breaches and penalties, the Customs Act 1901 and the Customs Tariff Act 1995 outline various offences and penalties for non-compliance. The maximum penalties for breaches can include fines and imprisonment, depending on the nature and severity of the offence. However, the Explanatory Statement for this particular TCO does not specify penalties, as it focuses on the procedural aspects of the TCO application and approval process.