EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0604625
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.
Millennium Science Pty Ltd applied for a TCO in respect of certain robotic micro organism picker laboratory on 1 March 2006.
Instrument
TCO No 0604625 was made on 19 May 2006. It declares that those certain robotic micro organism picker laboratory 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. 0604625 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 Tariff Concession Instrument No. 0604625, enacted in 2006 under the Customs Act 1901, was introduced to address the need for tariff concessions on specific imported goods, in this case, certain robotic micro organism picker laboratories. This legislation, created by the Parliament of Australia, aims to facilitate the importation of goods by reducing or eliminating customs duty where applicable, provided that no substitutable goods are produced in Australia. The policy objective is to encourage the importation of specialised goods that are not domestically produced, thereby supporting sectors that rely on imported technology. The instrument, which came into effect on the date of the application, 1 March 2006, allows for a tariff-free import of these specialised laboratory devices by declaring them subject to a specific item in the Customs Tariff Act 1995, thereby benefiting importers who can claim duty refunds for imports made since the commencement date.
Scope and Application
The Tariff Concession Instrument No. 0604625, issued under the Customs Act 1901, applies to individuals and entities seeking tariff concessions on specific goods, in this instance, certain robotic micro organism picker laboratories. The Act's provisions enable the Chief Executive Officer of Customs to grant lower rates of customs duty on goods through Tariff Concession Orders (TCOs), provided the goods are not specified in section 269SJ of the Act and meet the core criteria outlined in section 269C. This process ensures that the goods in question are not substitutable by any goods produced in Australia in the ordinary course of business. The TCO applies nationally, across all jurisdictions within Australia, and is effective from the date the application was lodged. Notably, the TCO does not impose liabilities on any person and does not affect the rights of any person as at the date of registration, except to beneficially affect the rights of importers who can apply for a refund of duty on goods imported since the TCO came into effect.
Key Provisions
The key provisions of the Tariff Concession Instrument No. 0604625 under the Customs Act 1901 (section 269C) relate to the granting of Tariff Concession Orders (TCOs). This instrument was made on 19 May 2006 and pertains to certain robotic micro organism picker laboratories. The primary requirement of this legislation is to declare that these specific goods are subject to a concessional tariff rate, as outlined in item 50 of Schedule 4 to the Customs Tariff Act 1995. This means that the general duty rate of 5% is waived for these goods, allowing them to enter Australia duty-free. This concession is contingent on the Chief Executive Officer of Customs (CEO) being satisfied that no substitutable goods are produced in Australia, aligning with the core criteria specified in section 269C.
The obligations imposed by this Act on the relevant parties are primarily procedural and informational. For instance, section 269F mandates that any person interested in applying for a TCO must submit an application to the CEO. The CEO, in turn, must ensure that the application does not involve goods specified in section 269SJ, which are ineligible for TCOs. Additionally, the CEO must evaluate whether the application meets the core criteria, which involves confirming that no substitutable goods are produced in Australia on the date the application is lodged (section 269C). Furthermore, as per section 269K(1), the CEO is required to publish a notice in the Gazette inviting any interested party to submit objections if they believe the TCO should not be granted. In this case, the CEO did not receive any submissions.
Failure to comply with the provisions of the Customs Act 1901 may result in various legal consequences. Although the explanatory statement does not explicitly outline specific offences or penalties for breaching the TCO provisions, general provisions of the Customs Act may apply. Typically, breaches could lead to civil or criminal penalties, depending on the severity and intent behind the violation. Civil penalties could include fines, while criminal penalties could result in imprisonment, depending on the specific breach and the discretion of the court. The exact penalties would be determined based on the relevant sections of the Customs Act and the associated regulations.
The commencement date of this Tariff Concession Instrument, as per subsection 269S(1), is 1 March 2006, the date on which the application for the TCO was lodged. This means that the tariff concession became effective from that date. Importantly, the TCO does not retroactively affect the rights of any person, except for the Commonwealth, ensuring that no one is disadvantaged or incurs liabilities for actions taken prior to the TCO's effective date. This protects the rights of importers, who can benefit from the concession by applying for a refund of duty on goods imported since the TCO's effective date, as outlined in paragraph 126(1)(r) of the Regulations.