EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0610569
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.
Brother International (Australia) Pty Ltd applied for a TCO in respect of certain thermal ink transfer facsimile rolls on 19 June 2006.
Instrument
TCO No 0610569 was made on 01 September 2006. It declares that those certain thermal ink transfer facsimile rolls 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. 0610569 is taken to have come into force on 19 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 was enacted by the Australian Parliament to provide for the regulation of customs and excise duties. Part XVA of this Act allows the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) which reduce customs duty on certain goods. The Tariff Concession Instrument No. 0610569, made in 2006, aims to provide a tariff concession for specific thermal ink transfer facsimile rolls. This instrument was introduced to address the need for tariff reductions where no substitutable goods are produced in Australia, thereby providing economic relief and potentially boosting the competitiveness of Australian businesses by reducing the cost of importing these goods. The instrument was made following an application by Brother International (Australia) Pty Ltd, and the CEO was satisfied that the application met the core criteria, leading to the concession of a reduced duty rate from 5% to free.
Scope and Application
The Customs Act 1901, specifically Part XVA, outlines the framework under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (CEO). This Act applies to any person who can apply to the CEO for a TCO in respect of goods, provided that the application does not pertain to goods specified in section 269SJ, which lists those goods that are ineligible for a TCO. The application is subject to meeting the core criteria as stipulated in section 269C, which requires that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269F allows for applications to be submitted to the CEO, who then determines if the application meets the outlined criteria. The instrument is effective nationally across Australia, as it falls under the Commonwealth jurisdiction. Notably, the TCO does not affect the rights of any person as at the date of registration and does not impose any liabilities on any person. Importers of the goods subject to the TCO will benefit from this instrument, as they can apply for a refund of duty on goods imported since the TCO came into force on the date of the application.
Key Provisions
The Customs Act 1901, particularly Part XVA, outlines the framework for Tariff Concession Orders (TCOs) (s 269F). This legislation allows for a reduced rate of customs duty on specific goods, provided that an application is made to the Chief Executive Officer (CEO) of Customs and meets certain criteria (s 269C). For the application to be considered, it must not relate to goods specified in section 269SJ, which are ineligible for TCOs. The CEO must ensure that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged (s 269C, s 269D, s 269E). Once the CEO is satisfied that the application meets these core criteria, a written TCO is issued, declaring that the goods in question are subject to a prescribed tariff item (s 269P(3)). For instance, TCO No. 0610569 pertains to certain thermal ink transfer facsimile rolls, applying item 50 of Schedule 4 to the Customs Tariff Act 1995, which results in a duty-free rate (s 269P(3)).
The obligations under this legislation primarily focus on the application process and the criteria for issuing a TCO. The CEO is required to publish a notice in the Gazette inviting submissions from any interested parties who might object to the granting of a TCO (s 269K(1)). This ensures transparency and provides an opportunity for stakeholders to voice their concerns. Once the CEO receives an application, they must assess it against the specified criteria and, if satisfied, issue the TCO accordingly. Additionally, the CEO must ensure that the TCO does not adversely affect the rights of any person other than the Commonwealth and does not impose liabilities for actions taken before the TCO's effective date (s 269S(1)).
Any breaches of the provisions outlined in the Customs Act 1901, particularly concerning the issuance of TCOs, could lead to legal consequences. While the specific penalties are not detailed in the provided text, it is implied that non-compliance with the conditions set forth could result in civil or criminal penalties. The nature and extent of these penalties would depend on the specific breach and the broader legal context in which it occurs. Importers, however, may benefit from the TCO by applying for a refund of duty on goods imported since the TCO's effective date (Reg. 126(1)(r)).