EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0603414
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.
Unilever Australasia Pty Ltd applied for a TCO in respect of certain aerosol capper on 6 February 2006.
Instrument
TCO No 0603414 was made on 18 April 2006. It declares that those certain aerosol capper 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. 0603414 is taken to have come into force on 6 February 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. 0603414, enacted in 2006, was introduced under the Customs Act 1901 to provide tariff concessions for certain goods. This instrument was created to address the need for a streamlined process to reduce customs duties on specific goods that are not produced domestically, thereby encouraging importation and potentially lowering costs for consumers. The Tariff Concession Order (TCO) was issued by the Chief Executive Officer of Customs in response to an application by Unilever Australasia Pty Ltd for tariff concessions on certain aerosol cappers. The instrument declares that these specific aerosol cappers are subject to a zero percent duty rate, which is a reduction from the general rate of 5 percent, effective from the date the application was lodged, 6 February 2006.
The process for establishing the TCO involved publishing a notice in the Gazette to invite submissions from interested parties, although none were received. This instrument aims to benefit importers by potentially allowing them to apply for a refund of duty on the goods imported since the effective date of the TCO, without imposing any new liabilities on any person. The enactment of this TCO by the relevant authority under the Customs Act 1901 underscores a policy objective to facilitate trade by reducing the cost burden on imported goods, which can have broader economic benefits.
Scope and Application
The Tariff Concession Instrument No. 0603414, made under the Customs Act 1901, applies to individuals or entities that seek tariff concessions for specific imported goods. This instrument was issued in response to an application by Unilever Australasia Pty Ltd for tariff concessions on certain aerosol cappers. The Act enables the Chief Executive Officer of Customs to grant such concessions if the goods are not produced in Australia and there are no substitutable goods available domestically. The geographic reach of this legislation is national, applying across Australia, as it operates under the Customs Act 1901, which is a Commonwealth Act. The concessions granted by this instrument are subject to the conditions outlined in the Act, including the requirement that no substitutable goods were produced in Australia on the day the application was lodged. There are no stated exclusions or exemptions within this particular instrument, but the Act itself excludes certain goods from being subject to tariff concession orders as specified in section 269SJ. The application of this Act may be extended or restricted through subordinate instruments, such as regulations, which can provide further details on the administration and enforcement of tariff concessions.
Key Provisions
The Tariff Concession Instrument No. 0603414, made under the Customs Act 1901, primarily pertains to the establishment of a Tariff Concession Order (TCO) for certain aerosol cappers. Section 269F of the Act allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods. If the CEO determines that the application is not for goods specified in section 269SJ, which lists those ineligible for a TCO, the CEO then assesses whether the application meets the core criteria as outlined in section 269C. A TCO application is deemed to meet these criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business, as defined in section 269D and section 269E. In this instance, the CEO was satisfied that no substitutable goods were produced in Australia, leading to the issuance of a TCO on 18 April 2006, which declared that the specific aerosol cappers were subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, thus making the duty on these goods free, down from the general rate of 5%.
The obligations imposed by the Act on parties and entities governed by it are primarily centred around the application process and the criteria for a TCO. Under section 269K(1), once the CEO accepts an application as valid, they must publish a notice in the Gazette inviting any interested parties to lodge submissions if they believe the TCO should not proceed. In the case of TCO No. 0603414, no submissions were received in response to this invitation. Additionally, section 269S(1) dictates that a TCO is considered to come into force on the day the application is lodged. This means that TCO No. 0603414 is deemed to have come into force on 6 February 2006, the date of the application.
The Act also outlines consequences for non-compliance or breach of its provisions. Although the specific section detailing penalties for breaches is not mentioned in the explanatory statement, it is implied that any failure to adhere to the stipulations of a TCO or any related duty obligations could result in legal repercussions. Given the nature of the Customs Act, breaches might typically lead to civil or criminal penalties, which could include fines or other financial penalties as prescribed by relevant laws. However, the exact penalties are not specified in the explanatory statement provided, and would need to be consulted in the full text of the Act or related legislation.