EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0610735
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.
Thurgood Equipment Pty Ltd applied for a TCO in respect of certain hydraulic jacks on 23 June 2006.
Instrument
TCO No 0610735 was made on 15 September 2006. It declares that those certain hydraulic jacks 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 10%. 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. 0610735 is taken to have come into force on 23 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 Tariff Concession Instrument No. 0610735, enacted under the Customs Act 1901, was introduced to address the need for tariff concessions on specific goods where no substitutable goods are produced in Australia. This legislation was brought into effect to facilitate the reduction of customs duty on certain imported goods, thereby promoting trade and economic efficiency. The instrument was enacted by the Chief Executive Officer of Customs, in line with the provisions outlined in Part XVA of the Customs Act 1901. The policy objective of this instrument is to ensure that the application of tariff concessions does not disadvantage any existing producers within Australia while providing relief to importers of the specified goods. The instrument was published in the Gazette to invite public submissions, although none were received in response to the notice. The tariff concession took effect on the date the application was lodged, 23 June 2006, and does not affect the rights of any person prior to its registration, including the ability of importers to seek refunds for duties paid on the goods imported since the effective date.
Scope and Application
The Tariff Concession Instrument No. 0610735 under the Customs Act 1901 applies specifically to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. This instrument is relevant to entities, such as Thurgood Equipment Pty Ltd, that apply for a TCO to reduce the rate of customs duty on particular goods. The application of this Act extends to any individual or corporate entity seeking to import goods that may benefit from a reduced customs duty as per the TCO. The Act operates within the national jurisdiction of Australia and is specifically concerned with the customs duties applied on goods entering the country. The legislation does not apply to goods specified in section 269SJ of the Act, which outlines those that cannot be subject to a TCO. The Act also provides for the possibility of subordinate instruments that may extend or modify its application, though the primary focus remains on the tariff concessions for specific goods as determined by the CEO of Customs.
Key Provisions
The Tariff Concession Instrument No. 0610735 (the Instrument) pertains to the application of a Tariff Concession Order (TCO) concerning certain hydraulic jacks. Under section 269P(3) of the Customs Act 1901 (the Act), the Chief Executive Officer of Customs (the CEO) issued this order based on a determination that no substitutable goods were produced in Australia on the date the application was lodged, satisfying the core criteria outlined in section 269C. This TCO, effective from 23 June 2006, aligns the duty on the specified hydraulic jacks with item 50 of Schedule 4 to the Customs Tariff Act 1995, granting a rate of duty that is free, as opposed to the general rate of 10%.
The obligations imposed by the Act on parties include the submission of an application by a person to the CEO for a TCO under section 269F. The CEO must then verify that the application pertains to goods not listed in section 269SJ and assess whether the core criteria in section 269C are met. The CEO is also required to publish a notice in the Gazette under subsection 269K(1) inviting any person who might oppose the TCO to lodge a submission. In this case, the CEO did not receive any submissions. Additionally, under subsection 269S(1), the TCO is effective from the date the application was lodged, which in this instance is 23 June 2006.
Any breach of the provisions outlined in the Act could lead to legal consequences. Although the explanatory statement does not explicitly detail specific offences, penalties, or consequences, it is implied that non-compliance with the requirements to apply for and obtain a TCO, or acting contrary to the conditions of the TCO, could result in legal action. The maximum penalties for breaches of the Customs Act could include substantial fines or imprisonment, depending on the severity of the offence. Importers can benefit from this TCO by applying for a refund of duty on goods imported since the effective date of the TCO under paragraph 126(1)(r) of the Regulations, as the TCO does not impose any liabilities on any person.