EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0602273
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.
Pump Selections Pty Ltd applied for a TCO in respect of certain water treaters on 16 January 2006.
Instrument
TCO No 0602273 was made on 10 April 2006. It declares that those certain water treaters 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. 0602273 is taken to have come into force on 16 January 2006.
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. 0602273, enacted in 2006, amends the Customs Act 1901 to address the issue of tariff concessions for specific goods by allowing for lower rates of customs duty. This instrument was introduced to provide a mechanism through which businesses can apply for tariff concessions for goods that are not produced domestically. The instrument facilitates the process by which the Chief Executive Officer of Customs can make Tariff Concession Orders (TCOs) based on applications from interested parties. The primary objective of this legislation, as articulated in the Act, is to ensure that tariff concessions are granted fairly and in accordance with the criteria specified within the Customs Act.
The instrument was created under the authority of the Customs Act 1901, with the Australian Parliament as the enacting body. The policy objective behind the Tariff Concession Instrument No. 0602273 is to encourage the import of certain goods by reducing the associated customs duty, thereby potentially lowering costs for businesses and consumers while fostering competitive markets. This legislative instrument plays a crucial role in facilitating economic activities by providing a structured approach to tariff concessions, ensuring that the rights of importers are protected and that the concessions do not adversely affect existing legal rights or impose new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0602273, made under Part XVA of the Customs Act 1901, applies to goods specified in the instrument, namely certain water treaters, which are subject to tariff concession orders issued by the Chief Executive Officer of Customs. The application of this instrument is contingent on the satisfaction of the CEO that no substitutable goods were produced in Australia on the day the application was lodged, as per section 269C of the Act. This instrument pertains to the Commonwealth jurisdiction and is intended to reduce the customs duty on specified goods, in this case, water treaters, from a general rate of 5% to a duty-free status. The instrument does not affect the rights of any person, including importers, who may benefit from the tariff concessions by applying for a refund of duty paid on goods imported since the day the TCO is taken to have come into force, as per paragraph 126(1)(r) of the Regulations. The instrument does not impose any liabilities on any person, including the Commonwealth.
Key Provisions
The key provisions of Tariff Concession Instrument No. 0602273, made under the Customs Act 1901, pertain to the establishment of a tariff concession order (TCO) for certain water treaters. Section 269F (1) of the Customs Act 1901 allows an individual to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of specific goods. Upon receiving an application, the CEO must determine whether the application meets the core criteria as outlined in section 269C of the Act. These criteria require that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. If the CEO is satisfied that the application meets these criteria, they must make a written order, which is the TCO, specifying the prescribed item of Schedule 4 to the Customs Tariff Act 1995 that applies to the goods in question.
The obligations and requirements imposed by the Customs Act 1901 on the parties involved include ensuring that any TCO applications adhere to the core criteria specified in section 269C. The CEO must also publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made, as per section 269K (1). In this instance, Pump Selections Pty Ltd applied for a TCO for certain water treaters, and the CEO, finding no substitutable goods were produced in Australia, made TCO No. 0602273 on 10 April 2006. This TCO declared that the water treaters were subject to item 50 of Schedule 4 of the Tariff, with a duty rate of free, whereas the general rate of duty is 5%.
The Customs Act 1901 and related regulations also outline the consequences of breaches or non-compliance with the provisions of the Act and the TCO. However, in this specific case, no submissions were received by the CEO, and the TCO No. 0602273 does not disadvantage any person or impose liabilities on any person. Importers of the specified goods can benefit by applying for a refund of duty on goods imported since the day the TCO is taken to have come into force, as per paragraph 126(1)(r) of the Regulations. The TCO does not affect the rights of any person except the Commonwealth, ensuring that no one is disadvantaged or incurs liabilities for actions taken prior to the TCO's registration date.