EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611084
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.
Stainless Piping Products Pty Ltd applied for a TCO in respect of certain nickel copper tubing on 03 July 2006.
Instrument
TCO No 0611084 was made on 22 September 2006. It declares that thosee certain nickel copper tubing are goodsis a product 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. 0611084 is taken to have come into force on 03 July 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 Parliament of Australia to regulate customs and excise duties, among other things. One of the mechanisms within the Act is the provision for Tariff Concession Orders (TCOs), which allow for the reduction of customs duty on certain goods under specific conditions. The Tariff Concession Instrument No. 0611084 was introduced to provide a tariff concession for certain nickel copper tubing, reducing the duty on these goods from the general rate of 5% to free. This instrument was developed in response to an application by Stainless Piping Products Pty Ltd, and following a determination by the Chief Executive Officer of Customs that no substitutable goods were produced in Australia at the time of the application. The policy objective, as per the Act, was to ensure that the concession does not disadvantage any person and does not impose any liabilities on anyone other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0611084 under the Customs Act 1901 applies specifically to the concession of customs duty on certain nickel copper tubing, as applied for by Stainless Piping Products Pty Ltd. This legislation is relevant to entities or individuals importing these goods into Australia, as it provides a lower rate of customs duty, in this case, reducing the general rate of 5% to free of charge. The Act applies to goods that are not substitutable by products manufactured in Australia and that meet the criteria outlined in sections 269C and 269D of the Act. The instrument extends to the entire Commonwealth of Australia and operates within the parameters set by the Customs Act 1901. Importantly, the Act does not disadvantage any person with rights established before the date of registration of the Tariff Concession Order, and it does not impose any liabilities on persons other than the Commonwealth. The scope of the Act can be further defined or extended through subordinate instruments, which may specify additional details or categories of goods eligible for tariff concessions.
Key Provisions
The main sections of the Customs Act 1901 relevant to Tariff Concession Orders (TCOs) include section 269F, which allows for an application to be made to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods, and section 269C, which specifies that a TCO application meets the core criteria if no substitutable goods were produced in Australia on the day the application was lodged. If the CEO is satisfied that the application meets these criteria, they must make a written order (a TCO) specifying the lower rate of customs duty applicable to the goods (sections 269P(3) and 269S(1)).
The obligations imposed on parties by this legislation include the requirement for the CEO to decide whether an application for a TCO meets the core criteria. If the application is deemed valid, the CEO must make a TCO, which declares that the goods subject to the application are eligible for a lower rate of customs duty. Additionally, the CEO is obligated to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made (subsection 269K(1)).
In terms of consequences for breach, the Customs Act 1901 does not explicitly outline specific offences or penalties related to the failure to comply with TCO provisions. However, any breach of the Act’s provisions in general could lead to civil or criminal penalties depending on the severity and nature of the breach. The Act allows for the imposition of fines and potential imprisonment for breaches of its provisions, though the exact penalties would be determined by the courts in the context of the specific breach.