EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516377
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.
Orica Australia Pty Ltd applied for a TCO in respect of a certain Sodium Bi-Sulphate manufacturing plant on 18 November 2005.
Instrument
TCO No 0516377 was made on 30 January 2006. It declares that the certain Sodium Bi-Sulphate manufacturing plant is a good 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. 0516377 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 Tariff Concession Instrument No. 0516377, enacted in 2006 under the Customs Act 1901, addresses the need for tariff concessions on specific goods to encourage their importation and use within Australia. This instrument was introduced to facilitate trade and industry by providing relief from customs duties on certain goods that are not produced domestically. The Customs Act 1901 allows for the establishment of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can reduce or eliminate duty rates on specified goods if no substitutable goods are produced in Australia. This legislative measure was designed to support economic growth and competitiveness by lowering the cost of importing certain goods, thus enhancing their availability and affordability. The enactment of this instrument by the Parliament of Australia aims to streamline trade processes and support industries that rely on imported materials or equipment.
Scope and Application
The Tariff Concession Instrument No. 0516377 under the Customs Act 1901 applies to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. The instrument specifically relates to a Sodium Bi-Sulphate manufacturing plant applied for by Orica Australia Pty Ltd, which has been granted a tariff concession reducing the customs duty from the general rate of 5% to free. The legislation applies to any entity that imports or intends to import the specified goods, thus directly affecting importers of Sodium Bi-Sulphate in Australia. The instrument operates on a Commonwealth level, as it is an instrument of the Customs Act 1901, which is a Commonwealth Act. There are exclusions under section 269SJ of the Act, which specifies goods that cannot be subject to a TCO, although the precise nature of these exclusions is not detailed in the explanatory statement. The instrument's application may be extended or restricted through subordinate instruments as necessary, although no such instruments are mentioned in the provided text.
Key Provisions
The Tariff Concession Instrument No. 0516377 is an order made under the Customs Act 1901, which grants tariff concessions for certain goods. Specifically, this instrument pertains to a Sodium Bi-Sulphate manufacturing plant and declares it as a good to which a specified item of Schedule 4 to the Customs Tariff Act 1995 applies (section 269P(3)). This results in the general rate of duty, which would ordinarily be 5%, being reduced to free duty for these goods.
Under the Customs Act 1901, a person may apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) if certain conditions are met (section 269F). The CEO must then determine if the application meets the core criteria, primarily that no substitutable goods were produced in Australia at the time of the application (section 269C). If the CEO is satisfied that the application meets these criteria, they must make a written TCO (section 269P(3)).
In the case of Orica Australia Pty Ltd's application for a TCO in respect of the Sodium Bi-Sulphate manufacturing plant, the CEO was satisfied that no substitutable goods were produced in Australia, and therefore made the TCO effective from the date of the application, 18 November 2005. The CEO is also required to publish a notice in the Gazette inviting submissions from any interested parties if they believe the TCO should not be made. In this case, no submissions were received.
Should any party believe that a TCO should not be made or is being breached, they can lodge a submission with the CEO. Failure to comply with the conditions or obligations of the TCO may result in legal consequences. However, specific offences, penalties, or civil/criminal consequences are not detailed in the provided text, only that the TCO does not impose any liabilities on any person and does not affect the rights of a person as at the date of registration to disadvantage that person or impose liabilities in respect of anything done or omitted before the date of registration.