EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0605628
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.
Atco Controls Pty Ltd applied for a TCO in respect of certain steel sheets and/or strips on 23 March 2006.
Instrument
TCO No 0605628 was made on 16 June 2006. It declares that those certain steel sheets and/or strips 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. 0605628 is taken to have come into force on 23 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, provides a framework for the regulation of customs duties. Specifically, Part XVA of the Act allows for the establishment of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can apply lower rates of customs duty to certain goods. The Tariff Concession Instrument No. 0605628 was introduced to address the specific needs of Atco Controls Pty Ltd, which sought a concession for certain steel sheets and/or strips. This Instrument was enacted to provide a zero percent duty rate on these goods, down from the general rate of five percent, after determining that no substitutable goods were produced in Australia. The objective of this measure is to facilitate trade by reducing the cost of importing these particular goods, thereby benefiting importers who can apply for duty refunds on goods imported since the effective date of the concession.
Scope and Application
The Tariff Concession Instrument No. 0605628, made under the Customs Act 1901, applies to goods specified in the instrument, namely certain steel sheets and/or strips, and the person or entity responsible for applying for and receiving the concession. This Act facilitates the reduction of customs duty for these goods, thereby affecting the import duties levied on these specific items. The application of this Act is national in scope as it is a Commonwealth instrument, and it applies to all importers of the specified goods within Australia. Importantly, the Act does not apply to goods listed in section 269SJ of the Customs Act, which are ineligible for tariff concessions. The Act's application can be extended or further defined through subordinate instruments, such as regulations, although this particular TCO does not impose any additional liabilities on persons other than the Commonwealth and does not disadvantage existing rights of non-Commonwealth persons.
Key Provisions
The primary sections of Tariff Concession Instrument No. 0605628, as outlined in the explanatory statement, pertain to the application and making of a Tariff Concession Order (TCO) under Part XVA of the Customs Act 1901 (section 269F). Specifically, section 269C sets out the core criteria for a TCO, which must be met for the Chief Executive Officer of Customs (CEO) to grant a concession. This involves ensuring that no substitutable goods were produced in Australia at the time the application was lodged, as defined by sections 269D, 269E, and 269F. If the CEO is satisfied that these criteria are met, they are required to make a written TCO (section 269P(3)).
Section 269K(1) of the Customs Act 1901 imposes obligations on the CEO, mandating that they publish a notice in the Gazette inviting submissions from any person who may have an interest in the outcome of the TCO application. This ensures transparency and provides an opportunity for stakeholders to voice any concerns or objections before the TCO is made. In the case of TCO No. 0605628, the CEO did not receive any submissions, indicating that no objections were raised against the application for a tariff concession on the specified steel sheets and/or strips.
The Tariff Concession Instrument No. 0605628 specifies that the TCO applies to certain steel sheets and/or strips, reducing the duty from 5% to 0%. This concession is effective from the date the application was lodged, 23 March 2006 (subsection 269S(1)). Importantly, the TCO does not affect the rights of any person as at the date of registration, nor does it impose any liabilities on anyone other than the Commonwealth. Importers of these goods can benefit by applying for a refund of duty on goods imported since the effective date of the TCO (paragraph 126(1)(r) of the Regulations).
There are no explicit offences, penalties, or consequences outlined in the explanatory statement for breach of the provisions within this Tariff Concession Instrument. However, any failure to comply with the terms of the Customs Act 1901, including the process for making a TCO, could potentially lead to legal actions under the general provisions of the Act, which could include fines or other penalties as prescribed by the relevant legislation.