EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0608337
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.
Saacke Australia Pty Ltd applied for a TCO in respect of certain forced draft gas burners parts on 15 May 2006.
Instrument
TCO No 0608337 was made on 28 July 2006. It declares that those certain forced draft gas burners 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 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. 0608337 is taken to have come into force on 15 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 Customs Act 1901 was enacted to facilitate international trade and manage the customs duty process in Australia. Among its provisions, Part XVA establishes a scheme for Tariff Concession Orders (TCOs), which are designed to lower the customs duty on certain goods, provided they meet specific criteria. This legislative framework was introduced to address the need for tariff concessions that could stimulate trade and manufacturing by reducing the cost of imported goods essential for Australian industries. The Tariff Concession Instrument No. 0608337, enacted in 2006, applies these provisions to specific goods, in this case, certain forced draft gas burner parts, by the Chief Executive Officer of Customs (CEO). The CEO, in making this decision, ensures compliance with the conditions outlined in section 269C of the Act, which stipulates that no substitutable goods should be produced in Australia. This instrument was introduced following an application by Saacke Australia Pty Ltd, and it became effective from the date of application, 15 May 2006, aiming to provide tariff relief to importers of the specified goods.
Scope and Application
The Customs Act 1901, as amended by Tariff Concession Instrument No. 0608337, applies to the application and issuance of Tariff Concession Orders (TCOs) for certain goods imported into Australia. The Act, specifically under Part XVA, allows the Chief Executive Officer (CEO) of Customs to reduce or eliminate customs duty on specified goods if certain criteria are met. This legislation primarily concerns entities and individuals involved in the importation of goods that are subject to a TCO, aiming to provide relief in cases where no substitutable goods are produced domestically. The geographic reach of the Act is national, as it pertains to the customs duties imposed by the Commonwealth of Australia. The Act does not apply to goods specified in section 269SJ, which lists items ineligible for tariff concessions. The application process requires the CEO to assess whether the core criteria, outlined in sections 269C and 269D, are met before issuing a TCO. The CEO must also publish a notice in the Gazette inviting submissions from interested parties, although no submissions were received for this particular TCO. The tariff concession granted by TCO No. 0608337, which applies to certain forced draft gas burners parts, is effective from 15 May 2006, the date the application was lodged. This concession reduces the general duty rate of 5% to zero for the specified goods.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0608337 under the Customs Act 1901 (section 269F) concern the process for applying for a Tariff Concession Order (TCO) and the criteria that must be met for such an order to be issued. Section 269F outlines the application procedure for a TCO, while section 269C specifies the core criteria that must be fulfilled for the Chief Executive Officer of Customs (CEO) to grant the order. Specifically, section 269C stipulates that a TCO application will be considered if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P(3) then mandates that if the CEO is satisfied with the application, they must issue a written order declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995.
The obligations and requirements imposed by the Act on the parties involved are primarily centred around the application process and the criteria for issuing a TCO. The CEO is required to publish a notice in the Gazette as soon as practicable after accepting a TCO application, inviting submissions from any interested parties (subsection 269K(1)). Additionally, the CEO must ensure that the application meets the core criteria outlined in section 269C before issuing a TCO. Once a TCO is issued, the CEO must also ensure that the rights of importers are beneficially affected, allowing them to apply for a refund of duty on goods imported since the day the TCO came into force (paragraph 126(1)(r) of the Regulations). Importers, on their part, must ensure that they comply with the terms of the TCO and any associated application procedures.
Offences, penalties, or civil/criminal consequences for breach of the Act are not explicitly detailed in the provided text. However, it is important to note that failure to comply with the requirements set out in the Customs Act 1901 or the associated regulations could potentially lead to legal consequences, although the specific penalties are not outlined in this particular TCO. It is advisable to consult the full text of the Customs Act and related regulations for detailed information on potential penalties for non-compliance.