EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516804
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.
Anglo Coal Pty Ltd applied for a TCO in respect of certain rim profile mild steel bars on 19 December 2005.
Instrument
TCO No 0516804 was made on 10 March 2006. It declares that those certain rim profile mild steel bars 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. 0516804 is taken to have come into force on 19 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 was enacted to provide a comprehensive framework for the administration of customs duties and related matters in Australia. The Act allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can reduce the customs duty on certain goods. The Tariff Concession Instrument No. 0516804, enacted in 2006, was introduced to address the issue of applying for reduced customs duties on specific goods, in this case, rim profile mild steel bars, by Anglo Coal Pty Ltd. The instrument was created after the CEO of Customs was satisfied that no substitutable goods were produced in Australia, thus meeting the core criteria under the Act. This legislative instrument ensures that the rights of importers are beneficially affected and that no liabilities are imposed on any person under the TCO.
Scope and Application
The Tariff Concession Instrument No. 0516804 applies to the specific category of rim profile mild steel bars, as identified by Anglo Coal Pty Ltd in their application submitted on 19 December 2005. This Instrument is part of the broader framework established under Part XVA of the Customs Act 1901, which allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO) to apply lower rates of customs duty on certain goods. The application process outlined in the Act involves ensuring that the goods in question are not listed in section 269SJ, which specifies goods that cannot be subject to a TCO. The CEO must further determine that no substitutable goods are produced in Australia at the time the application is lodged, as defined in section 269C. In this instance, the CEO was satisfied that the conditions were met, leading to the issuance of TCO No. 0516804, which came into force on the date of the application under subsection 269S(1) of the Act. This Instrument affects the tariff rates for the specified goods, lowering the duty from the general rate of 5% to free, thereby benefiting importers of these goods.
The geographic scope of the Tariff Concession Instrument No. 0516804 is inherently tied to the Commonwealth jurisdiction, as it operates under the Customs Act 1901, which is a Commonwealth Act. The Instrument specifically targets the customs duty on rim profile mild steel bars, ensuring that these goods are treated according to the provisions of the Customs Tariff Act 1995. There are no stated exclusions or exemptions within the scope of this particular Instrument, though the general provisions of the Customs Act may include certain exclusions. The application of the Instrument is further extended or restricted by subordinate instruments as necessary, though no such extensions or restrictions are noted in this specific case.
Key Provisions
The main operative sections of this legislation, particularly section 269F of the Customs Act 1901, provide the framework for applying for Tariff Concession Orders (TCOs). An application for a TCO can be submitted by a person to the Chief Executive Officer of Customs (section 269F). If the CEO determines that the application pertains to goods not specified in section 269SJ of the Act and meets the core criteria set out in section 269C, the CEO is obligated to issue a written order granting the concession (section 269P(3)). This process effectively lowers the customs duty rate on the specified goods, as illustrated in the example of TCO No. 0516804, which concerns certain rim profile mild steel bars and sets their duty rate to zero.
The Act imposes several obligations on parties involved in the TCO process. Firstly, the CEO must ensure that the application is not for goods prohibited by section 269SJ and must verify that no substitutable goods were produced in Australia on the day the application was lodged, as per section 269C. The CEO must also publish a notice in the Gazette inviting submissions from any interested parties once an application is deemed valid, as stipulated in subsection 269K(1). Additionally, the CEO must make a written order declaring the goods subject to a TCO if the core criteria are met. These steps ensure that the TCO process is transparent and allows for public input.
Failure to comply with the provisions of the Customs Act 1901 and the associated regulations could lead to various consequences. The Act does not specify exact penalties for breaches directly within the explanatory statement, but generally, non-compliance with customs regulations can result in civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach. The exact penalties would be determined under the broader customs laws and related regulations. It is crucial for applicants and the CEO to adhere strictly to the legislative requirements to avoid these potential repercussions.