EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0608569
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.
Delphic Wholesalers (Aust) Pty Ltd applied for a TCO in respect of certain filo pastry extruders on 16 May 2006.
Instrument
TCO No 0608569 was made on 28 July 2006. It declares that those certain filo pastry extruders 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. 0608569 is taken to have come into force on 16 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. 0608569, enacted in 2006, is a legislative instrument under the Customs Act 1901, aimed at addressing the issue of tariff concessions for specific goods not produced in Australia. This instrument was introduced to streamline the process of applying for and granting tariff concessions, ensuring that certain goods, which are not produced domestically and do not have substitutable alternatives, can benefit from reduced customs duties. The instrument was enacted by the Australian Government and is intended to facilitate trade by lowering the cost of importing these specific goods, thereby potentially increasing their availability and affordability in the domestic market. The policy objective is to provide a clear and efficient pathway for importers to apply for tariff concessions, thereby promoting economic activity and market access for goods that are not locally manufactured.
Scope and Application
The Customs Act 1901, under its Part XVA, provides a framework for the Chief Executive Officer of Customs (CEO) to issue Tariff Concession Orders (TCOs) that apply lower rates of customs duty to specified goods. This legislation applies to entities and individuals who are subject to customs duty on goods imported into Australia. The scope of the Act encompasses a broad range of goods, with the exception of those listed in section 269SJ of the Act which cannot be subject to a TCO. The application of the TCO is determined by whether there are substitutable goods produced in Australia in the ordinary course of business on the day the application is lodged, as outlined in sections 269C and 269D of the Act. This legislative instrument, specifically Tariff Concession Instrument No. 0608569, extends its application to certain filo pastry extruders, providing a zero percent duty rate instead of the general 5 percent duty rate, effective from the date the application was lodged, 16 May 2006. The CEO is required to publish a notice in the Gazette inviting submissions against the TCO application, though no submissions were received in this instance. The TCO does not affect the rights of any person other than the Commonwealth and does not impose liabilities on any person.
Key Provisions
The Tariff Concession Instrument No. 0608569 under the Customs Act 1901 (section 269F) facilitates the reduction of customs duty on specific goods, in this case, filo pastry extruders, when no substitutable goods are produced in Australia. The application process (section 269C) requires that the Chief Executive Officer of Customs (CEO) must be satisfied that the goods are not prohibited under section 269SJ of the Act and that there are no substitutable goods produced in Australia in the ordinary course of business. Once these criteria are met, a Tariff Concession Order (TCO) is issued (section 269P(3)), granting a lower rate of customs duty.
The obligations imposed by the Act (section 269K(1)) on the CEO include publishing a notice in the Gazette inviting submissions from any interested parties regarding the proposed TCO. In this instance, no submissions were received. The TCO is deemed to have come into effect on the date the application was lodged (section 269S(1)), in this case, 16 May 2006. Additionally, the TCO does not affect any existing rights of individuals or entities other than the Commonwealth and does not impose any new liabilities on them.
Breach of the provisions outlined in the Customs Act 1901 may result in civil or criminal consequences. While the explanatory statement does not detail specific offences or penalties, it is essential to note that non-compliance with customs regulations can lead to penalties as prescribed by the Act and related legislation. For instance, under the Customs Act 1901, penalties for incorrect declarations or fraudulent activities can be substantial, with potential criminal charges and fines. Importers who fail to adhere to the conditions of the TCO may also face financial repercussions, including the requirement to repay any undue duty concessions received.