EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0606375
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.
CMC Australia Pty Ltd applied for a TCO in respect of certain aluminum bars on 5 April 2006.
Instrument
TCO No 0606375 was made on 30 June 2006. It declares that those certain aluminium bars 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 free.
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. 0606375 is taken to have come into force on 5 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 Tariff Concession Instrument No. 0606375 was enacted in 2006 to address the need for tariff concessions for specific goods under the Customs Act 1901. The instrument was introduced by the Australian Government through the enactment of the Customs Act 1901, administered by the Parliament. The primary policy objective of this instrument is to provide relief to importers by granting a tariff concession on certain goods, in this case, certain aluminum bars, by reducing the customs duty from the general rate of 5% to free, provided no substitutable goods are produced in Australia. This legislative measure was intended to support Australian businesses by making imported goods more cost-effective, thereby potentially increasing their competitiveness and economic viability.
Scope and Application
The Tariff Concession Instrument No. 0606375 applies to specific goods, in this case, certain aluminium bars, and the entities or persons involved in the import of these goods. The instrument is an extension of the Customs Act 1901, which governs the application and administration of customs duties in Australia. The instrument is enacted at the Commonwealth level, and its application is not restricted by state or territory boundaries, thus covering the entire nation. The legislation allows for the reduction or exemption of customs duties on specified goods if no substitutable goods are produced in Australia, thereby potentially benefiting importers. However, it explicitly excludes certain goods listed under section 269SJ of the Customs Act 1901, which cannot be subject to a Tariff Concession Order (TCO). The CEO of Customs has the authority to make a TCO if satisfied that the application meets the core criteria, which primarily entails the absence of substitutable goods produced in Australia. The commencement of the TCO is effective from the date the application is lodged, in this instance, 5 April 2006. The rights of existing importers are protected under the legislation, ensuring no disadvantage or new liabilities are imposed on them regarding actions taken before the TCO's registration date.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0606375 under the Customs Act 1901 (section 269F) permit the Chief Executive Officer of Customs (CEO) to make a Tariff Concession Order (TCO) for certain goods, provided that the goods are not specified in section 269SJ of the Act and meet the core criteria set out in section 269C. Section 269C requires that, on the day the application is lodged, no substitutable goods are being produced in Australia in the ordinary course of business. Once these conditions are satisfied, the CEO must make a written order declaring that the goods in question are subject to the prescribed tariff item specified in the order, which in this case is item 50 of Schedule 4 to the Customs Tariff Act 1995, where the general rate of duty is reduced to free.
The obligations imposed by the Act on the parties governed by it primarily concern the application and review processes for TCOs. Under section 269K(1), the CEO is required to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting any person who believes there are reasons why the TCO should not be made to submit their views. Additionally, the CEO must ensure that the application meets the core criteria, which includes verifying that no substitutable goods are being produced in Australia. The CEO also has the responsibility of making the TCO if the application is found to meet all the necessary criteria.
Failure to comply with the conditions and requirements set out in the Customs Act 1901 can lead to civil or criminal consequences. While specific offences and penalties are not detailed in the provided text, the Act generally allows for enforcement actions against those who breach its provisions. The CEO has the authority to investigate and take appropriate action against any party found to be in breach of the Act, including imposing fines or other penalties as stipulated by the relevant legislation.
In the context of this specific TCO, no submissions were received in response to the notice published in the Gazette, indicating that no objections were raised against the concession. The TCO No. 0606375 came into force on 5 April 2006, the day the application was lodged, and it does not affect the rights of any person adversely or impose any liabilities in respect of actions taken before the registration date. Importers of the specified goods will benefit from the reduced duty rate and can apply for a refund of duty on goods imported since the effective date of the TCO.