EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0607961
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 sleeve loaders on 4 May 2006.
Instrument
TCO No 0607961 was made on 14 July 2006. It declares that those certain sleeve loaders 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. 0607961 is taken to have come into force on 4 May 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. 0607961, enacted in 2006 under the Customs Act 1901, addresses the problem of ensuring that Australian businesses remain competitive by providing tariff concessions on certain imported goods. This instrument was introduced by the Australian Parliament to facilitate the importation of goods under specific circumstances without imposing additional customs duties. The policy objective is to support Australian industries by allowing the Chief Executive Officer of Customs to grant tariff concessions if certain criteria are met, such as the absence of substitutable goods produced in Australia. This initiative aims to prevent the imposition of unfair economic burdens on domestic industries that might otherwise be outcompeted by cheaper imported alternatives. The instrument was designed to be transparent and inclusive, inviting public submissions on proposed tariff concessions, although in this case, no objections were received.
Scope and Application
The Customs Act 1901, as applied through Tariff Concession Instrument No. 0607961, pertains to the establishment of Tariff Concession Orders (TCOs) for specific goods. The instrument applies to individuals or entities seeking lower customs duty rates for goods that qualify under the criteria outlined in the Act. These concessions are applicable to imported goods that meet the conditions set forth in section 269C and section 269D of the Act, which include the absence of substitutable goods produced in Australia. The geographic reach of this legislation is national, as it is governed by the Commonwealth of Australia and applies across all states and territories. Notably, the TCOs do not affect the rights of persons other than the Commonwealth and do not impose any liabilities on such persons in respect of actions taken before the TCO was registered. The Act allows for the expansion of its application through subordinate instruments, ensuring flexibility in addressing various circumstances and goods.
Key Provisions
The primary sections of the Tariff Concession Instrument No. 0607961, as outlined in the explanatory statement, focus on the process and conditions under which a Tariff Concession Order (TCO) can be made under the Customs Act 1901. According to section 269F, a person can apply to the Chief Executive Officer (CEO) of Customs for a TCO concerning specific goods. If the CEO determines that the application pertains to goods not listed in section 269SJ, they must then assess whether the application meets the core criteria stipulated in section 269C. This involves ensuring that no substitutable goods were produced in Australia on the day the application was lodged, as defined in sections 269D and 269E.
The obligations imposed by the Act on the parties involve ensuring compliance with the conditions set out in the sections mentioned above. For example, the CEO must publish a notice in the Gazette (subsection 269K(1)) as soon as practicable after accepting a TCO application as valid, inviting any interested parties to submit their views on why the TCO should not be made. In this instance, the CEO did not receive any submissions. Additionally, the TCO does not affect the rights of any person (other than the Commonwealth) as of the registration date, nor does it impose any liabilities on any person (other than the Commonwealth) in respect of anything done or omitted before the registration date.
Under the Customs Act 1901, there are consequences for non-compliance with the provisions of a TCO. The Act does not explicitly detail the specific offences, penalties, or consequences for breach of the TCO in the explanatory statement. However, it is important to note that the Act governs customs duties and the penalties for breaches related to customs and excise are generally outlined in other sections of the Customs Act 1901 and the Excise Act 1901. These can include both civil and criminal penalties, which may involve fines and imprisonment depending on the severity and nature of the breach.