EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0516884
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.
Super Cheap Auto Pty Ltd applied for a TCO in respect of certain hand trolleys on 29 November 2005.
Instrument
TCO No 0516884 was made on 03 March 2006. It declares that those certain hand trolleys 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. 0516884 is taken to have come into force on 29 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, enacted by the Australian Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs. This legislation was introduced to address the need for a mechanism to provide tariff relief on certain imported goods, ensuring that such relief is granted only when no substitutable goods are produced in Australia. The primary policy objective is to facilitate the importation of goods that are not domestically produced, thereby supporting Australian businesses and consumers by potentially reducing the cost of imported goods. Super Cheap Auto Pty Ltd successfully applied for a TCO concerning certain hand trolleys, resulting in the issuance of Tariff Concession Order No. 0516884 on 3 March 2006. This order granted a tariff concession on these goods, effectively reducing the duty rate from 5% to free, provided no substitutable goods were produced in Australia. The concession came into effect on the date the application was lodged, 29 November 2005, without affecting the rights of any person prior to this date or imposing any new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0516884 is an instrument under the Customs Act 1901 that applies to certain hand trolleys, specifically those for which Super Cheap Auto Pty Ltd made an application on 29 November 2005. The instrument applies to the entities involved in the importation of these specific goods and aims to provide a tariff concession by lowering the rate of customs duty from the general rate of 5% to free. This concession is contingent upon the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The application of the instrument is limited to the scope defined by the Act and does not extend to goods specified in section 269SJ of the Customs Act 1901, which are ineligible for tariff concessions. The instrument came into force on the same day the application was lodged, 29 November 2005, and does not affect any pre-existing rights or liabilities of persons other than the Commonwealth. The instrument extends its application through the subordinate Customs Tariff Act 1995, which specifies the applicable duty rate for the goods in question.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Order (TCO) No. 0516884, focus on the creation and application of tariff concessions for certain goods. Section 269F (1) of the Customs Act 1901 permits an application to the Chief Executive Officer (CEO) of Customs for a TCO on behalf of goods. If the application meets the core criteria outlined in section 269C, and is not in respect of goods specified in section 269SJ, the CEO must make a written order declaring that the goods in question are subject to a prescribed item in Schedule 4 of the Customs Tariff Act 1995. This effectively means that the goods will be subject to a lower rate of customs duty, or in some cases, no duty at all. In this particular case, TCO No. 0516884, made on 03 March 2006, applies to certain hand trolleys which are now subject to a duty rate of free, down from the general rate of 5%.
The Act imposes several obligations and requirements on the parties involved. For applicants, the primary requirement is to ensure that their application for a TCO meets the core criteria set out in section 269C. This involves demonstrating that no substitutable goods were produced in Australia on the day the application was lodged, as defined in sections 269B, 269D, and 269E of the Act. The CEO, on the other hand, must promptly publish a notice in the Gazette inviting any interested parties to submit their reasons why a TCO should not be made, as required by section 269K(1). The CEO is also mandated to make a written order if the application meets the core criteria, as per section 269P(3).
There are potential consequences for failing to comply with the provisions of the Act. However, the explanatory statement does not explicitly detail specific offences, penalties, or consequences for breach in this context. Typically, under the Customs Act 1901, breaches may lead to civil or criminal penalties, depending on the severity of the offence. Civil penalties can include fines, while criminal penalties might involve imprisonment. The specific penalties would depend on the nature of the breach and the discretion of the court.
In summary, TCO No. 0516884 facilitates tariff concessions for certain hand trolleys, reducing their customs duty from 5% to free. The Act requires applicants to meet certain criteria and mandates the CEO to publish notices and make orders as appropriate. Although the explanatory statement does not detail specific penalties for non-compliance, breaches of the Customs Act 1901 can result in civil or criminal penalties, including fines and imprisonment.