EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0605453
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.
Kra-Mar Pet Supplies Pty Ltd applied for a TCO in respect of certain animal loading vehicle ramps on 21 March 2006.
Instrument
TCO No 0605453 was made on 2 June 2006. It declares that those certain animal loading vehicle ramps 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. 0605453 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 Australian Parliament, facilitates the application of tariff concessions to certain imported goods through the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The 2006 legislation, F2006L01756, addresses the gap in tariff regulation by providing a mechanism for lowering customs duties on specific goods that are not produced domestically, thereby ensuring fair trade practices and economic efficiency. This instrument was designed to promote competitive imports and protect domestic industries by preventing the importation of goods that could substitute for Australian-made products. The explanatory statement indicates that the policy objective is to provide tariff relief for goods that do not have Australian alternatives, thus encouraging trade without unduly burdening domestic producers. The process involves public consultation, ensuring that the application for tariff concessions is transparent and considers all relevant stakeholder inputs.
Scope and Application
The Tariff Concession Instrument No. 0605453 under the Customs Act 1901 applies to specific goods, namely certain animal loading vehicle ramps, as identified in the application made by Kra-Mar Pet Supplies Pty Ltd. The Act allows for the Chief Executive Officer of Customs to make a Tariff Concession Order (TCO) that provides for a lower rate of customs duty on goods that are the subject of such an order. This instrument specifically applies to goods for which no substitutable goods are produced in Australia in the ordinary course of business. The geographic reach of the Act is national, as it falls under the Commonwealth’s legislative authority. Any person or entity importing these specific goods will benefit from the zero percent duty rate as stipulated in the TCO, which came into effect on 21 March 2006, the date the application was lodged. The TCO does not impose any liabilities on any person and does not affect the rights of any person as at the date of registration in a manner that would disadvantage them or impose liabilities for actions prior to the registration date.
Key Provisions
The Tariff Concession Instrument No. 0605453, made under the Customs Act 1901, pertains specifically to a Tariff Concession Order (TCO) for certain animal loading vehicle ramps. Section 269F of the Act outlines the process by which an applicant, such as Kra-Mar Pet Supplies Pty Ltd, may request a TCO from the Chief Executive Officer (CEO) of Customs. This provision is subject to the condition that the goods in question are not prohibited from receiving such concessions under section 269SJ. The core criteria for a TCO, as defined in section 269C, require that no substitutable goods were produced in Australia on the day the application was lodged.
The obligations imposed by this Act on the CEO include the duty to assess whether the application for a TCO meets the core criteria (section 269C) and, if satisfied, to make a written order that specifies the goods to which the prescribed tariff concession applies. Additionally, under subsection 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any interested parties who may object to the TCO. In this case, the CEO did not receive any submissions.
Failure to comply with the requirements of the Customs Act 1901 can result in civil or criminal consequences. While the specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act can generally lead to substantial fines and, in severe cases, imprisonment. The exact penalties would be determined by the courts based on the nature and severity of the breach. This Act ensures that the rights of non-Commonwealth entities are protected and that no new liabilities are imposed by the TCO, maintaining a balance between facilitating trade and protecting legitimate interests.