EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0603528
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.
National Resources Pty Ltd applied for a TCO in respect of certain rolled aluminium alloy sheets on 7 February 2006.
Instrument
TCO No 0603528 was made on 12 May 2006. It declares that those certain rolled aluminium alloy sheets 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. 0603528 is taken to have come into force on 7 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 Customs Act 1901 was enacted to provide a framework for the regulation of customs and excise in Australia, including the imposition and collection of duties and taxes on imported and exported goods. The Tariff Concession Instrument No. 0603528, introduced in 2006, addresses the need to provide tariff concessions on certain goods to encourage their production and use within Australia. The instrument was created under the authority of the Customs Act 1901 and was made by the Chief Executive Officer of Customs, who was satisfied that the application for tariff concessions met the core criteria, specifically that no substitutable goods were produced in Australia in the ordinary course of business. The policy objective of this instrument is to facilitate the importation of specific goods by reducing or eliminating customs duty, thereby supporting industries reliant on these goods and promoting economic efficiency.
The instrument was developed following an application by National Resources Pty Ltd for tariff concessions on certain rolled aluminium alloy sheets, which was accepted by the CEO of Customs on 12 May 2006. The instrument declares that these specific sheets are subject to a zero rate of duty, significantly reducing the financial burden on importers and potentially stimulating local production and use of these materials. The instrument came into effect on the date of application, 7 February 2006, and does not affect any pre-existing rights or impose any new liabilities on individuals or entities other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0603528 under the Customs Act 1901 applies specifically to goods for which a Tariff Concession Order (TCO) has been applied and approved. This Act pertains to entities such as businesses or individuals who are importing or intend to import certain goods into Australia, specifically rolled aluminium alloy sheets in this instance. The scope of the Act is focused on the reduction or elimination of customs duties on specified goods, provided that no substitutable goods are produced in Australia. The TCO is applicable on a national level, as it operates under the authority of the Chief Executive Officer of Customs, who is empowered to approve such concessions in line with the Customs Act 1901. The geographic reach of this Act is Australia-wide, encompassing the entire Commonwealth. The Act does not specify any exclusions, but it does exclude certain goods as outlined in section 269SJ of the Act, which includes goods that cannot be subject to a TCO. The application of the Act can be extended or modified through subordinate instruments, which may include regulations and further notifications by the CEO of Customs.
Key Provisions
The main operative sections of the Customs Act 1901, specifically under Part XVA, pertain to the creation and application of Tariff Concession Orders (TCOs) (sections 269C, 269F, 269SJ, and 269P). Section 269F enables individuals or entities to apply to the Chief Executive Officer (CEO) of Customs for a TCO on goods, provided these goods are not specified in section 269SJ. The CEO must then determine if the application meets the core criteria outlined in section 269C, which includes ensuring that no substitutable goods are produced in Australia on the date the application is lodged, as defined by section 269D and 269E. If the application meets these criteria, the CEO is mandated to issue a written TCO, as per section 269P(3), specifying the lower duty rate applicable to the goods.
The obligations imposed by the Customs Act 1901 on the parties involved are primarily centred around the application process for TCOs. The applicant must ensure that the goods in question are not prohibited under section 269SJ and that the application is submitted on the correct date to meet the core criteria. The CEO, upon receiving a valid application, must publish a notice in the Gazette inviting any interested parties to submit any objections or reasons why the TCO should not be granted. Once no objections are received, the CEO is required to issue the TCO if the application meets the criteria. The Act also mandates that the TCO does not affect the rights of any person, except the Commonwealth, concerning actions taken before the TCO's effective date.
The Act does not explicitly outline specific offences, penalties, or consequences for breach in the context of TCOs. However, the integrity of the application process is crucial. Any misleading or false information in an application could potentially lead to civil or criminal consequences under other provisions of the Customs Act 1901, such as penalties for providing false or misleading information. Although the maximum penalties are not detailed in the text, such breaches could result in fines or other legal repercussions as determined by the courts. The Act ensures that the rights of importers are protected and can benefit from duty refunds for goods imported since the TCO's effective date, as stipulated under the Regulations.