EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0608062
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 Limited applied for a TCO in respect of certain hot strip steel rolling mill coil box pivoting arm roller mandrels on 08 May 2006.
Instrument
TCO No 0608062 was made on 21 July 2006. It declares that those certain hot strip steel rolling mill coil box pivoting arm roller mandrels 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. 0608062 is taken to have come into force on 08 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. 0608062 was enacted in 2006 under the Customs Act 1901, addressing the need for streamlined tariff concessions to support Australian industries by reducing customs duty on specific goods. The instrument was created in response to an application from Bluescope Steel Limited for tariff concessions on certain hot strip steel rolling mill coil box pivoting arm roller mandrels. The objective was to ensure that no substitutable goods were produced in Australia at the time of application, thereby qualifying the goods for the concession. The Chief Executive Officer of Customs (CEO) reviewed the application and confirmed that the core criteria were met, leading to the issuance of the tariff concession order on 21 July 2006, effective from 8 May 2006. This instrument ensures that the rights of importers are protected and can benefit from the reduced duty rates without imposing any new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0608062, made under the Customs Act 1901, applies to specific goods, in this case certain hot strip steel rolling mill coil box pivoting arm roller mandrels, as designated by the Chief Executive Officer of Customs. This instrument operates within the framework of Part XVA of the Customs Act, which allows for the issuance of Tariff Concession Orders (TCOs) that provide a lower rate of customs duty for goods specified in the order. The Act applies to entities that import these goods into Australia and is intended to facilitate trade by reducing the duty on specified items, thus benefiting importers by potentially lowering their costs. The geographic scope of this legislation is national, applying across Australia, and it extends to any person or entity importing the specified goods. Any exclusions or limitations are detailed within the Act itself, specifically in section 269SJ, which lists goods that cannot be subject to a TCO. The instrument does not extend or restrict its application through subordinate instruments, as the primary legislative authority and scope are defined within the Customs Act and the Tariff Concession Instrument itself.
Key Provisions
The primary sections of the Customs Act 1901 (the Act) relevant to the Tariff Concession Instrument No. 0608062 (the Instrument) include sections 269F, 269C, 269B, and 269P (subsection 3) (269F, 269C, 269B, 269P(3)). These sections allow for the application and consideration of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (the CEO). Specifically, section 269F provides the mechanism for a person to apply for a TCO, while section 269C outlines the core criteria that must be met for the application to be considered valid. If the CEO is satisfied that the application meets these criteria, as per section 269P(3), the CEO must issue a written order declaring that the goods in question are subject to the TCO.
The Act imposes several obligations on the parties involved in the process of applying for and granting a TCO. For the applicant, such as Bluescope Steel Limited, the obligation is to ensure their application is valid, meaning it must meet the core criteria specified in section 269C of the Act. For the CEO, the obligations include reviewing the application to determine if it meets the core criteria, publishing a notice in the Gazette to invite any submissions opposing the TCO, and making a written order if the application is found to meet the criteria (269K(1), 269S(1)). The CEO must also ensure that the TCO does not affect the rights of any person, other than the Commonwealth, in a detrimental manner in respect of actions taken before the TCO was registered (126(1)(r) of the Regulations).
There are no direct offences, penalties, or civil/criminal consequences specified for breaches of the TCO process under the Act. However, if a TCO is found to be improperly granted, this could lead to legal challenges or administrative reviews. Furthermore, if an entity or individual attempts to exploit the TCO for illegal purposes, such as evading customs duties, they may face separate charges under other sections of the Customs Act or related legislation. The general principle is that any misuse of a TCO could result in legal action, including potential fines or imprisonment for serious breaches.