EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0608964
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.
Hasbro Australia Ltd applied for a TCO in respect of certain board games on 24 May 2006.
Instrument
TCO No 0608964 was made on 11 August 2006. It declares that those certain board games 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. 0608964 is taken to have come into force on 24 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 the administration of customs duties and the regulation of goods imported into Australia. This Act was introduced to ensure efficient and effective customs procedures, providing clear guidelines for the collection of duties and the facilitation of trade. Part XVA of the Customs Act 1901 specifically addresses Tariff Concession Orders (TCOs), which allow for the application of lower rates of customs duty on certain goods. The policy objective behind this provision is to support Australian industries by making imported goods more competitive, thereby protecting domestic production and potentially stimulating economic growth. The explanatory statement for Tariff Concession Instrument No. 0608964 indicates that the legislation was enacted to provide a tariff concession on specific board games, reducing the duty from 5% to 0% based on the criteria outlined in the Act.
Scope and Application
The Customs Act 1901, particularly Part XVA, pertains to Tariff Concession Orders (TCOs) which can be made by the Chief Executive Officer of Customs (CEO) to apply a lower rate of customs duty to specific goods. This legislation applies to individuals or entities that make an application for a TCO in relation to goods that are not specified in section 269SJ of the Act, which lists goods ineligible for TCOs. The application must meet core criteria, including the condition that no substitutable goods are produced in Australia in the ordinary course of business at the time of the application. The scope of this legislation is national, operating under the Commonwealth, and it extends its application through subordinate instruments such as the Customs Tariff Act 1995. Exemptions and exclusions are explicitly stated in the Act, with certain goods permanently ineligible for TCOs. The instrument in question, TCO No. 0608964, pertains to specific board games and came into force on the date the application was lodged, 24 May 2006. This order does not adversely affect the rights of any person other than the Commonwealth and does not impose any new liabilities. Importers of the specified goods will benefit from a refund of duty on goods imported since the effective date of the TCO.
Key Provisions
The key provisions of the Tariff Concession Instrument No. 0608964 under the Customs Act 1901 (section 269F) establish a framework for applying for and granting Tariff Concession Orders (TCOs). A TCO can be applied for by any person in respect of goods, and if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets the core criteria (section 269C), a TCO may be issued. The core criteria require that on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269D and 269E). If the CEO is satisfied that the application meets these criteria, a written order is made declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies (section 269P(3)). This particular instrument (TCO No. 0608964) was made on 11 August 2006, declaring that certain board games are subject to a 0% duty rate instead of the general 5% rate, as no substitutable goods were produced in Australia.
The Act imposes several obligations on the parties involved. The CEO must determine whether the application meets the core criteria by considering if any substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any interested parties if they believe there are reasons why the TCO should not be made (subsection 269K(1)). In this case, no submissions were received, and the TCO was made on 11 August 2006. The TCO is deemed to have come into force on the day the application was lodged (subsection 269S(1)), which was 24 May 2006 for this instrument. The TCO does not affect the rights of any person, except the Commonwealth, as at the date of registration, nor does it impose any liabilities on any person.
Any breaches of the provisions outlined in the Customs Act 1901 can result in penalties and consequences. However, the explanatory statement does not provide specific details about offences, penalties, or civil/criminal consequences for breach in the context of TCOs. The Act and its regulations would need to be consulted for precise information regarding sanctions for non-compliance. The focus of this instrument is on facilitating tariff concessions for specified goods, and it does not explicitly mention any penalties for failing to comply with the legislative requirements.