EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516762
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.
Impact International Pty Limited applied for a TCO in respect of certain collapsible aluminium tube production lines on 08 December 2005.
Instrument
TCO No 0516762 was made on 03 March 2006. It declares that those certain collapsible aluminium tube production lines 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. 0516762 is taken to have come into force on 08 December 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 Parliament of Australia, provides for the regulation of customs and excise duties. The Customs Act 1901 includes Part XVA which establishes a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs. The purpose of this scheme is to offer lower rates of customs duty on specified goods, thereby promoting economic efficiency and supporting industry. This provision was introduced to address gaps in tariff regulation, ensuring that Australian industries can access necessary equipment and components at reduced duty rates, which can enhance competitiveness and efficiency. The process involves applications from interested parties and evaluations by the CEO to determine if the goods meet the criteria for tariff concessions, ensuring that the concessions are granted appropriately and in line with the objectives of the Customs Act.
Scope and Application
The Tariff Concession Instrument No. 0516762, made under the Customs Act 1901, applies to the specific goods detailed in the instrument, namely certain collapsible aluminium tube production lines. This instrument was enacted to provide tariff concessions for these goods, allowing them to be imported into Australia at a reduced rate of customs duty, or in some cases, free of duty, provided the application met the core criteria as outlined in the Act. The primary beneficiaries of this concession are entities involved in the importation of these goods, which can include businesses that import such equipment for manufacturing or other industrial purposes. The instrument extends to the Commonwealth and is intended to encourage the import of goods that are not produced domestically, thereby supporting industries reliant on such imports.
Geographically, this legislation operates on a national level within Australia, impacting the importation process across the country. The instrument was made effective from the date the application was lodged, 08 December 2005, and does not disadvantage any existing rights or impose new liabilities on any party other than the Commonwealth. The application process and subsequent implementation of the tariff concession are managed by the Chief Executive Officer of Customs, who ensures that the conditions specified in the Customs Act 1901 are met before granting the concession. The Act also facilitates subordinate instruments, allowing for further adjustments and refinements in the tariff concessions as necessary.
Key Provisions
The primary provisions of the Customs Act 1901, as outlined in sections 269C, 269B, 269D, 269E, and 269P, establish a framework for the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). Under these sections, a person can apply to the CEO for a TCO on goods, provided that such goods are not specified in section 269SJ and meet the core criteria set out in section 269C. Specifically, a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Here, 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are defined by sections 269D, 269E, and 269F respectively. If the CEO is satisfied that the application meets these criteria, they must make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995.
The obligations imposed by this legislation require the CEO to carefully assess each TCO application to ensure it complies with the stipulated criteria. The CEO must also publish a notice in the Gazette, inviting submissions from any person who believes the TCO should not be made. In the case of TCO No. 0516762, no submissions were received in response to this invitation. The CEO is mandated to decide on the application as soon as practicable, and if satisfied, issue the TCO which comes into force on the day the application was lodged. In this instance, the TCO was made on 03 March 2006, effective from 08 December 2005.
There are no specific offences, penalties, or consequences for breach outlined in the provided text. However, the general principle of compliance with the Customs Act 1901 would apply, and any failure to adhere to the requirements could potentially result in civil or criminal consequences. For instance, knowingly providing false information in an application could be considered fraudulent, which might attract penalties under other sections of the Customs Act or related legislation. The maximum penalties for such offences could vary depending on the specific breach and the applicable law, but they could include fines and imprisonment.