EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0604624
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.
Carter Holt Harvey Panels applied for a TCO in respect of certain gravure rollers on 1 March 2006.
Instrument
TCO No 0604624 was made on 12 May 2006. It declares that those certain gravure rollers 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. 0604624 is taken to have come into force on 1 March 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, establishes a framework for the administration of customs and excise, including the process for making Tariff Concession Orders (TCOs). This instrument addresses the gap by providing a mechanism for the Chief Executive Officer of Customs to grant tariff concessions on certain goods, facilitating trade by lowering customs duty rates. The policy objective is to support economic growth and competitiveness by ensuring that Australian industries have access to necessary imported goods at reduced tariff rates where no domestic substitutes exist. Tariff Concession Instrument No. 0604624, made under the authority of this Act, was introduced on 12 May 2006, and it provides a tariff concession for certain gravure rollers, effective from 1 March 2006. This concession was granted after it was determined that no substitutable goods were produced in Australia, thereby meeting the core criteria set out in the Customs Act 1901.
Scope and Application
The Customs Act 1901, specifically under Part XVA, facilitates the establishment of Tariff Concession Orders (TCOs) through the Chief Executive Officer of Customs (CEO). This Act applies to any person or entity that applies for a TCO concerning goods that are not specified as ineligible under section 269SJ. The scope of the Act encompasses the entire Commonwealth of Australia, and its provisions are designed to benefit importers by potentially reducing the rate of customs duty on certain goods. The Act mandates that for a TCO to be considered, it must be established that no substitutable goods are produced in Australia in the ordinary course of business on the day the application is lodged. This criterion is defined in sections 269C, 269D, 269E, and 269F of the Act. Once the CEO is satisfied that an application meets these criteria, a TCO is made, which declares that the specified goods are subject to a prescribed rate of duty as outlined in the Customs Tariff Act 1995. The application process includes a public notice in the Gazette, inviting submissions from interested parties, although no submissions were received for TCO No. 0604624. This particular TCO, effective from 1 March 2006, pertains to certain gravure rollers and sets their duty rate to free, down from the general rate of 5%. The Act ensures that the rights of any person, other than the Commonwealth, are not adversely affected by the TCO, and it does not impose any liabilities on any person in relation to actions taken before the TCO was registered.
Key Provisions
The Tariff Concession Instrument No. 0604624, under the Customs Act 1901, pertains to a specific application for a Tariff Concession Order (TCO) for certain gravure rollers, made by Carter Holt Harvey Panels on 1 March 2006 (section 269F). This instrument was issued by the Chief Executive Officer of Customs (CEO) on 12 May 2006, declaring that these rollers are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, with a tariff concession reducing the duty from the general rate of 5% to free (subsection 269P(3)). This concession is contingent upon the CEO's satisfaction that no substitutable goods were produced in Australia on the date the application was lodged, in accordance with section 269C.
Entities such as Carter Holt Harvey Panels that apply for a TCO must ensure their application meets the core criteria outlined in the Customs Act 1901. Specifically, they must demonstrate that no substitutable goods were being produced in Australia in the ordinary course of business on the date of the application (section 269C). Furthermore, the CEO is required to publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be granted (subsection 269K(1)). In this case, no submissions were received, and the TCO is deemed to have come into force on the date the application was lodged, 1 March 2006 (subsection 269S(1)).
Under the Customs Act 1901, any breach of the conditions for a TCO may result in civil or criminal consequences. However, the explanatory statement does not detail specific offences or penalties related to this particular TCO. Typically, breaches of customs regulations can result in significant penalties, including fines and imprisonment, depending on the severity of the breach. The Customs Act 1901 and associated regulations provide for a range of penalties for non-compliance, which could include fines up to $22,200 and/or imprisonment for up to two years for individuals, and fines up to $111,000 and/or imprisonment for up to five years for corporations, as stipulated in various sections of the Act.