EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0609486
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.
Siemens Ltd applied for a TCO in respect of certain combined stop and control valves on 31 May 2006.
Instrument
TCO No 0609486 was made on 11 August 2006. It declares that those certain combined stop and control valves 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. 0609486 is taken to have come into force on 31 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. 0609486, enacted in 2006 under the Customs Act 1901, addresses the issue of providing tariff concessions for certain goods by reducing or eliminating customs duty for specific imported items. This instrument was created to facilitate easier access to particular goods, such as certain combined stop and control valves, by allowing a lower rate of customs duty or making them duty-free. The Customs Act 1901, enacted by the Australian Parliament, establishes the framework for tariff concessions, empowering the Chief Executive Officer of Customs to make such orders if specific criteria are met. The policy objective behind this legislation is to encourage trade and ensure that Australian businesses and consumers have access to a broader range of goods at reduced costs, thereby enhancing economic efficiency and competitiveness.
Scope and Application
The Tariff Concession Instrument No. 0609486 under the Customs Act 1901 applies specifically to certain combined stop and control valves that Siemens Ltd sought a concession for, with the application being lodged on 31 May 2006. This instrument is applicable to the goods specified in the application, which are not produced in Australia, and thus meet the core criteria as outlined in section 269C of the Act. The Instrument was issued on 11 August 2006, and it declares that these particular valves are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, with the duty rate for these goods being free, as opposed to the general rate of 5%. The Instrument does not disadvantage any persons, including importers who can apply for a refund of duty under the Regulations, and it imposes no liabilities on any person. The CEO is required to publish a notice in the Gazette inviting submissions from any interested parties, although none were received for this specific Instrument. The Instrument comes into force on the date the application was lodged, aligning with the provisions of subsection 269S(1) of the Act.
Key Provisions
The main operative sections of this legislation include sections 269C, 269F, 269P, and 269SJ of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. If the CEO is satisfied that the application meets the core criteria set out in section 269C, they must make a written order 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 applies (section 269P). 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 269C). Goods that cannot be subject to a TCO are specified in section 269SJ.
The Act imposes several obligations on the parties it governs. An applicant for a TCO must ensure that their application meets the core criteria, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The CEO is required to make a decision on the application and, if satisfied that the core criteria are met, must make a TCO. Additionally, the CEO must publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application, inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. The CEO must also consider any submissions received in response to the notice before making a decision on the application.
There are no explicit offences, penalties, or consequences for breach outlined in this legislation. However, failure to meet the core criteria for a TCO application could result in the CEO not approving the application. Additionally, if a person knowingly or recklessly makes a false statement in an application for a TCO, they could be subject to criminal penalties under the Crimes Act 1914, including fines and imprisonment. It is important to note that the maximum penalties for these offences are not specified in this legislation.
In summary, the key provisions of this legislation relate to the process for applying for and making a Tariff Concession Order under the Customs Act 1901. The Act imposes obligations on both applicants and the CEO, and there are potential consequences for breach, including criminal penalties under the Crimes Act 1914. However, the specific maximum penalties for these offences are not outlined in this legislation.