EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0608855
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 differential pressure switches on 23 May 2006.
Instrument
TCO No 0608855 was made on 4 August 2006. It declares that those certain differential pressure switches 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. 0608855 is taken to have come into force on 23 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, enacted by the Australian Parliament, establishes a framework for tariff concessions through the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation addresses the problem of facilitating access to imported goods by reducing customs duty rates for specific items, thereby encouraging trade and supporting industries that rely on imported materials. Tariff Concession Instrument No. 0608855, introduced on 4 August 2006, aims to provide a zero per cent duty rate on certain differential pressure switches, a move that responds to an application by Bluescope Steel Ltd. The policy objective is to ensure that no substitutable goods are produced domestically, thus justifying the tariff concession. The instrument became effective from the date of the application, 23 May 2006, and does not retroactively disadvantage any party or impose new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0608855, enacted under the Customs Act 1901, applies to specific goods for which a Tariff Concession Order (TCO) is made, thereby granting them a reduced rate of customs duty. This Act allows the Chief Executive Officer of Customs (CEO) to process applications for TCOs from individuals or entities seeking lower customs duty rates on particular goods, provided these goods are not specified in section 269SJ of the Act as ineligible for TCOs. The application process requires the CEO to ensure that the goods in question are not substitutable with products already manufactured in Australia, as defined by sections 269C, 269D, and 269E of the Act. The TCO in question applies to certain differential pressure switches, which now benefit from a 0% duty rate instead of the general rate of 5%. The scope of this legislation extends across Australia, impacting all importers and manufacturers of the specified goods. The TCO came into force on the date the application was lodged, 23 May 2006, and does not retroactively affect any rights or liabilities incurred prior to this date.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0608855 under the Customs Act 1901 are sections 269C, 269F, and 269P(3). Section 269C outlines the core criteria for determining whether an application for a Tariff Concession Order (TCO) is valid, primarily focusing on whether substitutable goods are produced in Australia. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of certain goods. Section 269P(3) mandates that if the CEO is satisfied that the application meets the core criteria, they must make a written order, declaring that the specified goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995, thereby granting a tariff concession.
The obligations and requirements imposed by this Act on the parties involved primarily focus on the application and assessment processes for a Tariff Concession Order. The CEO must first verify that the application is not in respect of goods specified in section 269SJ, which lists goods that cannot be subject to a TCO. The CEO then assesses whether the application meets the core criteria as outlined in section 269C. If satisfied, the CEO must issue a written TCO. Additionally, the CEO is required to publish a notice in the Gazette inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission. In this case, no submissions were received.
Offences, penalties, or civil/criminal consequences for breach of this Act are not explicitly stated in the provided text. However, it is implicit that failure to comply with the statutory requirements or acting in contravention of the provisions could lead to legal consequences. Such breaches might result in the nullification of the TCO, penalties for non-compliance, or other legal actions as deemed necessary by the relevant authorities. The maximum penalties would typically depend on the specific nature of the breach and would be determined in accordance with the broader legal framework governing customs and tariffs in Australia.