EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0609942
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.
Robert Bosch Australia Pty Ltd applied for a TCO in respect of certain motor vehicle control panels on 5 June 2006.
Instrument
TCO No 0609942 was made on 25 August 2006. It declares that those certain motor vehicle control panels 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. 0609942 is taken to have come into force on 5 June 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 Commonwealth Parliament, facilitates the application of tariff concession orders (TCOs) for certain goods through the Chief Executive Officer of Customs. This Act aims to provide relief on customs duties for imported goods under specific circumstances, particularly when no substitutable goods are produced in Australia. The Tariff Concession Instrument No. 0609942, introduced in 2006, addresses the need for tariff concessions for motor vehicle control panels. This instrument was made following an application by Robert Bosch Australia Pty Ltd and was effective from the date of application, 5 June 2006. The policy objective is to ensure that tariff concessions are granted where appropriate, thereby potentially reducing the duty burden on importers without imposing any liabilities on non-Commonwealth entities.
Scope and Application
The Tariff Concession Instrument No. 0609942 under the Customs Act 1901 applies to the specific goods identified in the instrument, namely certain motor vehicle control panels, and the entities or individuals importing these goods. The instrument facilitates a concession in customs duty, reducing the rate from the general 5% to 0%. The concession applies from the date of the application, 5 June 2006, in line with the requirements of section 269S(1) of the Customs Act, which stipulates that a Tariff Concession Order (TCO) takes effect from the date the application is lodged. This order was made by the Chief Executive Officer of Customs (CEO) following an application by Robert Bosch Australia Pty Ltd, who demonstrated that no substitutable goods were produced in Australia, meeting the core criteria under section 269C of the Act. The geographic reach of this legislation is national, as it pertains to the importation of goods into Australia and the application of Australian customs duty laws. Any exclusions or exemptions are governed by the conditions set out in section 269SJ of the Act, which lists goods ineligible for TCOs. The CEO is required to publish a notice in the Gazette inviting submissions on the application, although in this case, no submissions were received. This process ensures transparency and allows interested parties to voice any objections to the concession being granted.
Key Provisions
The main operative sections of this Tariff Concession Instrument are sections 269C, 269P(3), and 269S. Section 269C of the Customs Act 1901 sets out the core criteria that an application for a Tariff Concession Order (TCO) must meet, namely that no substitutable goods were produced in Australia on the day the application was lodged. Section 269P(3) mandates that if these criteria are satisfied, the Chief Executive Officer (CEO) of Customs must make a written order declaring the goods subject to a prescribed rate of duty. Finally, section 269S provides that a TCO comes into force on the day the application was lodged, with retrospective effect from that date.
The obligations imposed by the Customs Act 1901 on the parties governed by this Act include the requirement for the CEO to consider applications for TCOs against the core criteria specified in section 269C. The Act also mandates that the CEO must publish a notice in the Gazette inviting submissions from interested parties if an application is accepted as valid, as per subsection 269K(1). In this case, the CEO did not receive any submissions in response to the notice published for TCO No. 0609942. The CEO must ensure that the TCO does not disadvantage any person other than the Commonwealth and does not impose any liabilities on such persons, which is explicitly stated in the explanatory statement.
In terms of offences, penalties, or consequences, the Customs Act 1901 does not explicitly mention any civil or criminal penalties for breaches related to TCOs. However, the Act does outline procedures for the CEO to follow when considering and making TCOs, and it specifies the rights of importers regarding refunds of duty. Importers can apply for a refund of duty on goods imported since the day the TCO is taken to have come into force, as stated under paragraph 126(1)(r) of the Regulations. The Act ensures that the rights of importers are beneficially affected, but it does not impose any liabilities on any person as a result of the TCO.