EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0604258
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.
Interscan Navigation Systems applied for a TCO in respect of certain antenna counterpoises on 23 February 2006.
Instrument
TCO No 0604258 was made on 5 May 2006. It declares that those certain antenna counterpoises 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 0%.
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. 0604258 is taken to have come into force on 23 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, enacted by the Parliament of Australia, provides a framework for the regulation of customs duties and tariffs. The Act allows for the creation of Tariff Concession Orders (TCOs) which can lower the customs duty on specified goods, provided certain criteria are met. Specifically, TCOs can be applied for under Part XVA of the Act, and if granted, they apply a lower rate of customs duty to the specified goods. This legislative mechanism was introduced to address the need for flexible tariff regulation that can respond to specific economic circumstances or requests from stakeholders, ensuring that Australian businesses can remain competitive and that consumers can benefit from reduced prices on certain imported goods.
In the case of Tariff Concession Instrument No. 0604258, the Chief Executive Officer of Customs made the order on 5 May 2006, following an application by Interscan Navigation Systems for tariff concessions on certain antenna counterpoises. The CEO determined that no substitutable goods were produced in Australia, thus satisfying the core criteria under the Customs Act. As a result, the general customs duty rate of 5% was reduced to 0% for these specific goods. This instrument was designed to provide a benefit to importers, allowing them to apply for a refund of duty on goods imported since the TCO was taken to have come into force, without imposing any new liabilities on any person.
Scope and Application
The Customs Act 1901, specifically under Part XVA, facilitates the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, aiming to provide tariff concessions on certain goods. These concessions apply to goods specified in a TCO when an application is made and approved by the CEO, provided the goods are not listed in section 269SJ of the Act and the application meets the core criteria as defined in sections 269C, 269D, 269E, and 269F. The application process requires the CEO to ensure that no substitutable goods are produced in Australia, as outlined in sections 269B and 269P. Once a TCO is made, it applies to the goods from the date the application was lodged, and it does not affect any pre-existing rights or liabilities. For example, Interscan Navigation Systems successfully applied for a TCO for certain antenna counterpoises, resulting in a 0% duty rate for these goods under TCO No. 0604258. This instrument has a Commonwealth jurisdiction and does not extend beyond federal borders. The CEO's decision-making process includes a public notice in the Gazette, inviting submissions from interested parties, although no submissions were received for TCO No. 0604258. The TCO can also be extended or modified through subordinate instruments as necessary.
Key Provisions
The primary sections of Tariff Concession Instrument No. 0604258, made under the Customs Act 1901, establish a tariff concession order (TCO) for certain antenna counterpoises, effective from 23 February 2006 (sections 269C, 269F, 269P(3), 269S). Specifically, this instrument declares that these goods are subject to a 0% duty rate, down from the general 5% rate (section 269P(3)). This concession applies to the goods specified in the TCO, which are listed as item 50 of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations on parties involved with these goods. Firstly, any person wishing to apply for a TCO must do so under section 269F, ensuring their application does not pertain to goods specified in section 269SJ, which cannot receive a TCO. The Chief Executive Officer of Customs (CEO) must then determine if the application meets the core criteria outlined in section 269C, primarily that no substitutable goods were produced in Australia at the time of application. Once satisfied, the CEO must issue a written TCO order as per section 269P(3). Additionally, the CEO must publish a notice in the Gazette under section 269K(1), inviting submissions from interested parties on the proposed TCO. In this instance, no submissions were received.
Failure to comply with the obligations set forth by the Customs Act 1901 can result in various consequences. While specific offences and penalties are not detailed within the text, general provisions under the Customs Act may apply. These can include fines, imprisonment, or both, depending on the nature and severity of the breach. The exact penalties would be determined by the relevant provisions of the Customs Act, which might include sections dealing with contraventions, misleading or deceptive conduct, or failure to provide necessary information. The CEO has the authority to enforce these provisions and take appropriate action against those who do not comply with the requirements set out in the Act.