EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0606253
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.
Bluescope Steel Ltd applied for a TCO in respect of certain x-ray thickness gauge cables on 7 April 2006.
Instrument
TCO No 0606253 was made on 30 June 2006. It declares that those certain x-ray thickness gauge cables 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. 0606253 is taken to have come into force on 7 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 was enacted to manage and regulate the importation of goods into Australia, and to provide for the collection of duties on imported goods. The Act establishes the framework for making Tariff Concession Orders (TCOs) that offer reduced customs duty rates for certain goods, provided they meet specific criteria and are not already produced in Australia. Enacted by the Australian Parliament, the Act aims to facilitate trade while ensuring that domestic industries are protected from unfair competition. The explanatory statement outlines the process and criteria for granting a TCO, highlighting the application procedure and the conditions that must be satisfied by the Chief Executive Officer of Customs before making such an order. The objective is to ensure that TCOs are granted only when there is no domestic production of substitutable goods, thereby supporting Australian industries while allowing for tariff concessions where appropriate.
Scope and Application
The Tariff Concession Instrument No. 0606253, made under the Customs Act 1901, applies to the goods specified in the instrument, namely certain x-ray thickness gauge cables, which are declared to be subject to a concessionary rate of customs duty as per item 50 of Schedule 4 to the Customs Tariff Act 1995. The Act allows for the application of a lower rate of customs duty to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs, provided that the application meets the criteria outlined in the Act, specifically, there must be no substitutable goods produced in Australia in the ordinary course of business. The instrument was applied for by Bluescope Steel Ltd and was effective from the date the application was lodged, 7 April 2006. The TCO does not affect the rights of any person adversely and allows for the potential refund of duties paid on the goods imported after the effective date of the order. The instrument applies on a national level across Australia under the Commonwealth's jurisdiction. The Act also provides for the exclusion of certain goods from TCO consideration, as specified in section 269SJ of the Act, and any subordinate instruments may extend or further define the application of the TCO scheme.
Key Provisions
The Tariff Concession Order No. 0606253, established under section 269F of the Customs Act 1901, provides specific concessions on customs duty for certain x-ray thickness gauge cables. The order was issued on 30 June 2006, declaring that these cables are subject to a duty rate of 0%, down from the general rate of 5%, following a successful application by Bluescope Steel Ltd. The order applies from 7 April 2006, the date on which the application was lodged, as stipulated in section 269S(1) of the Act.
Under this legislation, the Chief Executive Officer of Customs (CEO) must ensure that applications for Tariff Concession Orders (TCO) meet specific criteria before approval. Section 269C of the Act requires that, on the day the application is lodged, no substitutable goods are produced in Australia in the ordinary course of business. Section 269D, 269E and 269F further define what is meant by 'goods produced in Australia', 'ordinary course of business' and 'substitutable goods' respectively. If the CEO is satisfied that these criteria are met, they must make a TCO as per section 269P(3) of the Act.
Parties subject to this Act must adhere to the stipulated requirements to benefit from the tariff concessions. For instance, the CEO is mandated to publish a notice in the Gazette inviting submissions from interested parties on the application, as per section 269K(1) of the Act. The absence of submissions in response to the published notice indicates compliance with this requirement. Additionally, the TCO does not affect the rights of any person other than the Commonwealth, as per section 269S(1), and does not impose any liabilities on any person.
Failure to comply with the provisions of the Customs Act 1901 can result in civil or criminal consequences. While the explanatory statement does not specify the exact penalties, breaches of the Act could potentially result in fines or imprisonment, depending on the severity and nature of the breach. It is important for all parties to understand and adhere to the Act to avoid these consequences.