EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0605452
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.
Adkote Pty Ltd applied for a TCO in respect of certain inkjet printers and or presses ink on 21 March 2006.
Instrument
TCO No 0605452 was made on 9 June 2006. It declares that those certain inkjet printers and or presses ink 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. 0605452 is taken to have come into force on 21 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, includes provisions for the implementation of Tariff Concession Orders (TCOs) under its Part XVA, allowing the Chief Executive Officer of Customs to apply a lower rate of customs duty on certain goods. The Tariff Concession Instrument No. 0605452 was introduced to address the specific application by Adkote Pty Ltd for tariff concessions on certain inkjet printers and presses ink, which were not produced in Australia. The instrument was enacted to ensure that the application met the core criteria, specifically that no substitutable goods were produced domestically, thereby enabling the application of a reduced tariff rate on these imported goods. The policy objective, as implied by the creation of this TCO, is to facilitate the import of goods that are not domestically produced, potentially benefiting importers and the broader market by reducing costs and encouraging competition.
Scope and Application
The Tariff Concession Instrument No. 0605452, under the Customs Act 1901, applies to goods specified in the Instrument, specifically certain inkjet printers and presses ink, which have been granted a tariff concession order (TCO) by the Chief Executive Officer of Customs. This Act is applicable to entities or individuals importing these goods into Australia. The instrument was made on 9 June 2006, and it came into force on 21 March 2006, the date the application was lodged. This Act operates on a national level within Australia, impacting the importation of the specified goods. Any person applying for a TCO must ensure that the goods are not specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. The Act allows for the application of a lower rate of customs duty for goods that are the subject of a TCO, contingent on the absence of substitutable goods produced in Australia. There are no stated exclusions or exemptions in this specific TCO, and its application does not extend or restrict beyond the goods and conditions specified.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0605452 include sections 269C, 269F, and 269P of the Customs Act 1901. Section 269F allows an individual to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of goods. If the CEO is satisfied that the application meets the core criteria, as defined in section 269C, and the application is not in respect of goods specified in section 269SJ, the CEO must make a written order (a TCO) declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. Specifically, for the goods in question, item 50 of Schedule 4 applies, and the rate of duty is set at free, down from the general rate of 5%.
The obligations and requirements imposed by this legislation on the parties involved include the duty of the CEO to consider applications for TCOs and to publish a notice in the Gazette inviting submissions from interested parties. In this case, the CEO did not receive any submissions in response to the notice published. The rights of importers are beneficially affected by this TCO, as they can apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. The legislation ensures that 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.
Any breaches of this legislation may result in civil or criminal consequences. The maximum penalties for breaches of the Customs Act 1901 may include fines and imprisonment. However, the specific penalties for breaches related to the Tariff Concession Instrument No. 0605452 are not outlined in the explanatory statement. It is essential for individuals and entities involved in the importation of goods subject to a TCO to comply with the requirements of the Customs Act 1901 and the Tariff Concession Instrument to avoid any potential penalties or consequences.