EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0604323
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.
Zinifex Ltd applied for a TCO in respect of certain slurry transporters on 24 February 2006.
Instrument
TCO No 0604323 was made on 12 May 2006. It declares that those certain slurry transporters 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. 0604323 is taken to have come into force on 24 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. 0604323, enacted under the Customs Act 1901, was introduced to address the need for tariff concessions for specific goods, enabling reduced customs duties for those goods. This instrument was issued by the Chief Executive Officer of Customs in response to an application by Zinifex Ltd for tariff concessions on certain slurry transporters, which were not produced in Australia in the ordinary course of business. The primary objective of this legislation is to provide relief to importers by reducing the customs duty on these particular goods, enhancing their competitiveness without imposing any disadvantage or liabilities on other stakeholders. The instrument was published in the Gazette, inviting any objections, none of which were received, leading to its enactment on the date of application, 24 February 2006.
Scope and Application
The Tariff Concession Instrument No. 0604323, made under the Customs Act 1901, applies specifically to the goods in question, which are certain slurry transporters, as identified by Zinifex Ltd in their application to the Chief Executive Officer of Customs. The Act allows for tariff concession orders (TCOs) to be made when the CEO is satisfied that the goods in question are not substitutable by goods produced in Australia in the ordinary course of business, and that the application meets the core criteria set out in the Act. The TCO applies to the specific goods identified in the application and comes into effect from the date the application was lodged. The instrument benefits importers of these goods by allowing them to apply for a refund of duty on imports since the effective date of the TCO. The TCO does not affect the rights of any person other than the Commonwealth or impose any liabilities on any person in respect of actions taken prior to the TCO's registration. The CEO is required to consult with the public upon receiving a valid application, inviting submissions on why a TCO should not be made, though in this case, no submissions were received.
Key Provisions
The main operative sections of this legislation pertain to Tariff Concession Orders (TCOs) under the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a TCO in respect of goods. If the CEO is satisfied that the application is valid and meets the core criteria, they must make a written order (section 269P). The core criteria, as defined in sections 269B and 269C, require that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. This instrument, TCO No. 0604323, was made on 12 May 2006, and it declares that certain slurry transporters are goods to which item 50 of Schedule 4 to the Tariff applies, resulting in a free rate of duty for these goods.
The obligations imposed by this Act on the parties involved are primarily on the CEO of Customs, who must review applications for TCOs and ensure they meet the core criteria. The CEO is also required to publish a notice in the Gazette once a TCO application is accepted as valid, inviting any interested parties to lodge a submission if they believe the TCO should not be made (subsection 269K(1)). Once the CEO makes a TCO, it is taken to have come into force on the date the application was lodged (subsection 269S(1)). Importers of goods subject to a TCO can apply for a refund of duty on goods imported since the TCO's effective date, under paragraph 126(1)(r) of the Regulations.
There are no specific offences, penalties, or civil or criminal consequences outlined for breaches of this Act. However, the Act ensures that the rights of persons other than the Commonwealth are not adversely affected by a TCO. The legislation aims to provide tariff concessions to importers by reducing the duty on specified goods, without imposing liabilities on any person or disadvantaging existing rights. The primary focus is on facilitating smoother trade and reducing the financial burden on importers for goods subject to TCOs.