EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0605756
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.
Onesteel Manufacturing Pty Ltd applied for a TCO in respect of certain tailing and concentrate thickeners on 11 April 2006.
Instrument
TCO No 0605756 was made on 7 July 2006. It declares that those certain tailing and concentrate thickeners 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. 0605756 is taken to have come into force on 11 April 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, provides a framework for the regulation of customs and excise, including the imposition of customs duty on imported goods. To address the need for tariff concessions for certain imported goods where no substitutable Australian-produced goods exist, Part XVA of the Customs Act 1901 allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislative instrument facilitates the reduction or elimination of customs duty on specified imported goods, fostering trade efficiency and economic competitiveness. The Tariff Concession Instrument No. 0605756, issued under this authority, applies a zero percent duty rate to certain tailing and concentrate thickeners, acknowledging the absence of substitutable Australian-made products and thereby enhancing the import process for these goods. The policy objective is to support industries by reducing the cost of essential imported components, thereby promoting their competitiveness within the Australian market.
Scope and Application
The Tariff Concession Instrument No. 0605756 is an instrument under the Customs Act 1901 that applies to a specific category of goods, namely certain tailing and concentrate thickeners. The instrument was made in response to an application by Onesteel Manufacturing Pty Ltd on 11 April 2006, and it was registered on 7 July 2006. The instrument declares that these particular goods are subject to a tariff concession, reducing the duty from the general rate of 5% to 0%. The instrument is effective from the date of the application, 11 April 2006, and it applies to the goods specified in the instrument without imposing any liabilities on individuals or entities other than the Commonwealth. The instrument also ensures that the rights of importers are not adversely affected and that they can apply for a refund of duty paid on these goods since the effective date. The instrument operates under the broader framework of the Customs Act 1901 and the Customs Tariff Act 1995, and it does not alter the rights or impose liabilities on anyone other than the Commonwealth.
Key Provisions
The primary operative sections of Tariff Concession Instrument No. 0605756 (F2006L02316) are sections 269C, 269F, and 269P of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. If the application is valid and meets the core criteria set out in section 269C, the CEO must make a TCO. A TCO application meets the core criteria if, on the day it was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C). Section 269P(3) mandates that if the CEO is satisfied that the application meets the core criteria, they must make a written order (a TCO) specifying that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes specific obligations on the CEO when handling a TCO application. Once a TCO application is accepted as valid, the CEO must publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made (subsection 269K(1)). This notice must be published as soon as practicable after the application is accepted. In the case of TCO No. 0605756, no submissions were received in response to this notice. Additionally, the Act requires that the TCO must be taken to have come into force on the day on which the application for the TCO was lodged (subsection 269S(1)).
For breaches or non-compliance with the requirements outlined in the Customs Act 1901, the Act does not explicitly state specific offences, penalties, or consequences. However, the Act provides mechanisms for the CEO to ensure that applications meet the core criteria and that appropriate orders are made. Failure to comply with the requirements could potentially lead to legal challenges or disputes regarding the validity of the TCO, though specific penalties are not detailed in the provided text. The rights of importers are protected under the Act, which ensures that the TCO does not disadvantage persons or impose liabilities in respect of actions taken before the TCO registration date. Importers may also apply for a refund of duty on goods imported since the day the TCO is taken to have come into force, as per paragraph 126(1)(r) of the Regulations.