EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0603141
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.
Alcon Gove Developments Pty Ltd applied for a TCO in respect of certain steel cord belting conveyors on 27 January 2006.
Instrument
TCO No 0603141 was made on 7 April 2006. It declares that those certain steel cord belting conveyors 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. 0603141 is taken to have come into force on 27 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 Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the regulation of customs duties and includes provisions for Tariff Concession Orders (TCOs) under Part XVA. These orders, issued by the Chief Executive Officer of Customs, offer preferential duty rates for certain goods, provided they meet specific criteria. The objective of this legislation is to facilitate the import of goods that are not produced domestically by granting duty concessions, thereby supporting industries that rely on imported materials. In the case of Tariff Concession Instrument No. 0603141, issued on 7 April 2006, the legislation responds to an application by Alcon Gove Developments Pty Ltd for a concession on certain steel cord belting conveyors, recognising the absence of Australian-produced substitutes and setting the duty rate at zero, down from the general rate of 5%. This instrument was effective from the date of the application, 27 January 2006, and ensures that the rights of importers are protected, allowing for duty refunds on goods imported since the effective date.
Scope and Application
The Tariff Concession Instrument No. 0603141 under the Customs Act 1901 applies to specific steel cord belting conveyors, with the purpose of granting tariff concessions that reduce the rate of customs duty for these goods. The instrument was made by the Chief Executive Officer of Customs in response to an application from Alcon Gove Developments Pty Ltd, and it came into effect on the date the application was lodged, 27 January 2006. The instrument specifies that the goods in question are subject to a lower rate of customs duty, specifically item 50 of Schedule 4 to the Customs Tariff Act 1995, and provides a tariff rate of free for these goods, whereas the general rate is 5%. The instrument is designed to benefit importers by potentially allowing them to apply for a refund of duty on goods imported since the commencement date. Importantly, the instrument does not impose any liabilities on any person and does not disadvantage any person's rights as they existed on the date of registration. The instrument also ensures that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged, thereby meeting the core criteria set out in the Customs Act 1901.
Key Provisions
The key provisions of Tariff Concession Instrument No. 0603141 (section 269P(3)) involve the declaration by the Chief Executive Officer of Customs (CEO) that certain steel cord belting conveyors are subject to a Tariff Concession Order (TCO). This instrument specifies that these particular goods are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, resulting in a duty rate of free, down from the general rate of 5%. This concession applies as of the date the application for the TCO was lodged, 27 January 2006 (subsection 269S(1)).
The obligations imposed by the Act on the parties involved are primarily centred around the application and assessment process for a TCO. The applicant, Alcon Gove Developments Pty Ltd, had to demonstrate that the goods in question were not substitutable by any goods produced in Australia on the date of the application (section 269C). The CEO, upon receiving the application, must then determine whether the application meets the core criteria, ensuring that no substitutable goods were produced in Australia in the ordinary course of business at the time of application (section 269D and 269E). Additionally, the CEO is required to publish a notice in the Gazette inviting any objections to the TCO, although in this case, no submissions were received (subsection 269K(1)).
In terms of breaches and consequences, the Act does not explicitly outline specific offences or penalties for failing to comply with the provisions of a TCO. However, any misuse of the concession, such as fraudulently claiming the tariff concession on goods not eligible, could lead to significant legal repercussions. The general penalties for customs-related offences, as outlined in the Customs Act 1901, could apply. These penalties range from fines to imprisonment, depending on the severity of the offence. For example, under section 226 of the Customs Act, the maximum penalty for fraudulent behaviour can be up to 10 years imprisonment.
The Tariff Concession Instrument No. 0603141 provides clear guidelines and obligations for the application and implementation of tariff concessions for specific goods. By ensuring that the goods in question are not substitutable by Australian-produced alternatives, the instrument aims to support the import of these goods without the burden of customs duty. The lack of submissions against the TCO suggests broad acceptance or lack of opposition to the concession. Finally, while the specific penalties for breaches are not detailed in the instrument, the overarching legal framework provides a basis for enforcing compliance and penalising non-compliance with customs laws.