EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0606037
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.
Surteco Australia Pty Ltd applied for a TCO in respect of certain pvc sheets in rolls on 30 March 2006.
Instrument
TCO No 0606037 was made on 23 June 2006. It declares that those certain pvc sheets in rolls 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. 0606037 is taken to have come into force on 30 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 was enacted by the Parliament of Australia to regulate the import and export of goods and facilitate trade. To address the issue of ensuring that tariff concessions are granted appropriately, the Act includes provisions for Tariff Concession Orders (TCOs), which can be applied for by individuals or entities. The Tariff Concession Instrument No. 0606037 was introduced to provide a lower rate of customs duty on certain PVC sheets in rolls, recognising that no substitutable goods were produced in Australia, thereby benefiting importers of these goods. This instrument was made by the Chief Executive Officer of Customs following an application by Surteco Australia Pty Ltd and was published in the Gazette with no objections received. The policy objective is to ensure fair and competitive trade practices by providing tariff relief where appropriate.
Scope and Application
The Tariff Concession Instrument No. 0606037, made under the Customs Act 1901, applies to the concession of customs duty rates for specific goods, namely certain PVC sheets in rolls, which are subject to a Tariff Concession Order (TCO) granted to Surteco Australia Pty Ltd. The Act facilitates the application process whereby a person can apply to the Chief Executive Officer of Customs for a TCO, provided the goods do not fall under the categories specified in section 269SJ of the Act which are ineligible for tariff concessions. The instrument's application is confined to the Commonwealth jurisdiction, and it specifies that the goods in question are eligible for duty concessions if no substitutable goods are produced in Australia in the ordinary course of business. The TCO, which came into effect on the date of the application, reduces the general duty rate of 5% to 0% for the specified goods. The Act ensures that the concession does not disadvantage or impose liabilities on any person other than the Commonwealth for actions taken prior to the TCO's registration, and it allows importers to apply for duty refunds on goods imported since the TCO's effective date.
Key Provisions
The main operative sections of this legislation (Part XVA of the Customs Act 1901) allow the Chief Executive Officer of Customs (CEO) to make Tariff Concession Orders (TCOs) that apply lower rates of customs duty on specified goods. Under section 269F, a person may apply to the CEO for a TCO. If the CEO determines that the application meets the core criteria, including that no substitutable goods are produced in Australia (section 269C), a written TCO is issued (section 269P(3)). In this case, TCO No. 0606037 declares that certain PVC sheets in rolls are subject to a 0% duty rate, as opposed to the general rate of 5% (section 50 of Schedule 4 to the Customs Tariff Act 1995). This TCO came into force on the date the application was lodged, 30 March 2006 (subsection 269S(1)).
The obligations imposed by this legislation on the parties governed by it are primarily on the CEO and applicants for TCOs. The CEO must assess applications to determine if they meet the core criteria, including verifying that no substitutable goods are produced in Australia (section 269C). Upon meeting these criteria, the CEO must issue a TCO (section 269P(3)). Applicants must ensure their submissions are valid and meet all specified criteria for a TCO. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made (subsection 269K(1)). In this instance, the CEO did not receive any submissions.
Breach of the requirements set out in this legislation can lead to civil or criminal consequences. While the specific offences and penalties are not detailed in this excerpt, breaches generally could include failure to comply with the conditions of the TCO, or providing false information in the application process. The exact nature and severity of penalties would depend on the specific breach and relevant laws governing such actions, which might include fines or other sanctions as stipulated by the Customs Act 1901 or related regulations. The legislation ensures that the rights of persons other than the Commonwealth are not adversely affected by the TCO and does not impose any liabilities on any person.