EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0603700
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.
Omega Steel and Alloy Pty Ltd applied for a TCO in respect of certain extruded solid aluminium on 13 February 2006.
Instrument
TCO No 0603700 was made on 19 May 2006. It declares that those certain extruded aluminium 6262 rod 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. 0603700 is taken to have come into force on 13 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. 0603700, enacted in 2006, is an instrument under the Customs Act 1901 that addresses the issue of tariff concessions for specific imported goods. This instrument was introduced to provide a lower rate of customs duty on certain goods, as stipulated by a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. The objective of this legislation is to ensure that a TCO is granted only when no substitutable goods are produced in Australia, thereby promoting the import of goods that are not domestically manufactured. The instrument came into force on the date the application was lodged, in this case, 13 February 2006, and does not impose any new liabilities or disadvantage existing rights of any person except the Commonwealth.
The enactment of this instrument by the Parliament of Australia aims to streamline the process for granting tariff concessions on imported goods, facilitating trade and potentially reducing costs for importers. The instrument was introduced following an application by Omega Steel and Alloy Pty Ltd for a TCO on certain extruded solid aluminium, leading to the instrument declaring that the specified extruded aluminium 6262 rod would be subject to a free rate of duty, down from the general rate of 5%. The process included public consultation as per the Customs Act, though no submissions were received in response to the notice published in the Gazette.
Scope and Application
The Customs Act 1901, under Part XVA, facilitates the application of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO) for specific goods, allowing for reduced customs duties. This legislation applies to any person or entity that applies for a TCO for goods, provided the application meets the core criteria outlined in the Act, particularly that no substitutable goods are produced in Australia at the time of application. The application process involves assessing whether the goods in question are substitutable by Australian-produced goods and ensuring that the application does not pertain to goods excluded under section 269SJ of the Act. The geographic reach of this legislation is national, as it operates within the framework of the Customs Act 1901, which is applicable throughout Australia. The instrument, TCO No. 0603700, was made on 19 May 2006, applying a zero rate of duty to certain extruded aluminium 6262 rods, effective from the date of the application, 13 February 2006. This instrument does not disadvantage any person or impose liabilities on anyone in respect of actions taken prior to the registration of the TCO.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0603700 (referred to as TCO No. 0603700) are found under Part XVA of the Customs Act 1901. Section 269F allows for an application to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. Section 269C stipulates that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269P(3) requires the CEO to make a written order if satisfied that the application meets these core criteria. The TCO No. 0603700 declares that certain extruded solid aluminium, specifically aluminium 6262 rod, are goods to which a specific item of Schedule 4 to the Customs Tariff Act 1995 applies, thereby granting a duty-free status to these goods.
The Act imposes obligations on both the applicant and the CEO. The applicant must ensure that the application is not in respect of goods specified in section 269SJ, which lists goods that cannot be subject to a TCO. The CEO has the duty to assess the application against the core criteria, including verifying that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. If the CEO is satisfied that the application meets the criteria, they must make a written order declaring the goods to which the TCO applies. Additionally, as per section 269K(1), the CEO must publish a notice in the Gazette inviting any person who believes the TCO should not be made to lodge a submission.
Any breach of the obligations or requirements stipulated in the Act can result in civil or criminal consequences. While the specific penalties for breaches are not detailed in the explanatory statement, the general legal framework provided by the Customs Act 1901 suggests that penalties could include fines or imprisonment, depending on the severity and intent of the breach. The Act also ensures that the rights of importers will be beneficially affected, as they can apply for a refund of duty on goods imported since the day the TCO came into force. Importantly, the TCO does not affect the rights of any person other than the Commonwealth, nor does it impose any liabilities on any person in respect of actions taken before the date of registration.