EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0607262
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 bridle drive roll parts on 24 April 2006.
Instrument
TCO No 0607262 was made on 14 July 2006. It declares that those certain bridle drive roll parts 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 10%. 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. 0607262 is taken to have come into force on 24 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. 0607262, enacted in 2006 under the Customs Act 1901, aims to address the issue of facilitating the import of specific goods by providing a concession in customs duty rates. This legislative instrument was introduced to provide relief to industries that rely on the importation of particular goods which are not produced domestically, thereby promoting economic efficiency and competitiveness. The Customs Act 1901 allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, who is mandated to grant such concessions if certain criteria are met, specifically that no substitutable goods are produced in Australia. The policy objective is to enable importers to benefit from reduced duty rates, thereby lowering costs and potentially increasing the availability of goods in the market. The instrument was enacted by the relevant federal authority and aims to streamline the process of applying for and receiving tariff concessions, ensuring that businesses can operate more efficiently.
Scope and Application
The Tariff Concession Instrument No. 0607262 under the Customs Act 1901 applies to entities or individuals who import certain bridle drive roll parts and seek a concession on the applicable customs duty. This concession applies to the specific goods identified in the instrument, which in this case are parts used in bridle drive rolls, and the application of the tariff as specified in item 50 of Schedule 4 to the Customs Tariff Act 1995. The instrument applies nationally within Australia, as it falls under the jurisdiction of the Commonwealth under the Customs Act 1901. However, the Act excludes certain goods from being subject to a Tariff Concession Order, as specified in section 269SJ of the Act. The instrument extends the application of the Customs Act by providing a lower duty rate for the specified goods, contingent upon the criteria outlined in section 269C being met, and does not impose any additional liabilities on individuals or entities other than those specified by the Commonwealth. The instrument became effective on the date the application was lodged, 24 April 2006, and does not affect the rights of persons other than the Commonwealth in respect of actions taken prior to its registration.
Key Provisions
The Tariff Concession Instrument No. 0607262 under the Customs Act 1901 (section 269F) facilitates the application for Tariff Concession Orders (TCOs) by persons seeking a reduction in customs duty for specific goods. Once an application is made, section 269C requires the Chief Executive Officer of Customs (CEO) to evaluate whether the application meets the core criteria, which primarily involves determining if there are no substitutable goods produced in Australia (section 269D). If the CEO is satisfied that the application meets these criteria, they must issue a written order declaring that the goods in question are subject to a prescribed rate of duty specified in the Customs Tariff Act 1995 (section 269P(3)). This process allows for a more streamlined application and assessment procedure, ensuring that the goods specified are eligible for a reduced customs duty rate.
The obligations imposed by the Act on the parties involved, particularly the CEO, are quite specific. Under section 269K(1), the CEO must publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid. This notice must include an invitation for any interested party to submit any objections or submissions regarding why the TCO should not be made. This requirement ensures transparency and provides an avenue for public scrutiny and input. Additionally, section 269S(1) mandates that the TCO is deemed to come into effect on the day the application is lodged, ensuring that the tariff concession takes effect promptly. The CEO's role is crucial in this process, as they are responsible for the assessment, decision-making, and communication aspects of the TCO application.
In terms of consequences for non-compliance or breaches of the provisions within the Customs Act 1901, section 269F does not explicitly detail specific offences or penalties. However, any failure to comply with the requirements of the Act or the terms of a TCO could potentially lead to legal repercussions under broader provisions of the Customs Act or other relevant legislation. Typically, breaches of customs regulations can result in penalties such as fines, seizure of goods, and in severe cases, criminal prosecution. The specific penalties would depend on the nature and severity of the breach, as well as other applicable laws and regulations governing customs duties and tariffs. It is essential for parties involved to adhere to the legal requirements to avoid any adverse consequences.