EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611601
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.
Triangle Cables (Aust) Pty Ltd applied for a TCO in respect of certain halogen free, crosslinkable, copolymer polyethylene on 11 July 2006.
Instrument
TCO No 0611601 was made on 06 October 2006. It declares that those certain halogen free, crosslinkable, copolymer polyethylene 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. 0611601 is taken to have come into force on 11 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 Tariff Concession Instrument No. 0611601 was enacted in 2006 under the Customs Act 1901, which allows for tariff concessions to be applied to specific goods. This legislative instrument was introduced to address the need for a more streamlined and effective process for granting tariff concessions, ensuring that such concessions are granted in a manner that is both efficient and fair. The instrument was enacted by the Parliament of Australia, with the primary policy objective being to facilitate the import of goods that are not produced domestically, thereby benefiting consumers and businesses by potentially lowering the cost of such goods through reduced customs duties. The Tariff Concession Order (TCO) No. 0611601 was issued for certain halogen-free, crosslinkable, copolymer polyethylene, reducing the duty on these goods from the general rate of 5% to free, effective from the date the application was lodged.
Scope and Application
The Customs Act 1901, specifically under Part XVA, outlines the procedure for Tariff Concession Orders (TCOs), which apply to goods for which a lower rate of customs duty is set by the Chief Executive Officer of Customs (CEO) upon application. This legislative framework is designed to benefit Australian importers of certain goods, provided the CEO determines that no substitutable goods are produced in Australia at the time of the application. The Act applies to individuals or entities who apply for a TCO, and it is in force nationwide across Australia, with the CEO acting under the authority of the Commonwealth. Exclusions from TCO consideration include goods specified in section 269SJ of the Act, which are ineligible for tariff concessions. The Act allows for the extension and restriction of its application through subordinate instruments, which may specify further criteria or conditions for TCO eligibility. In the case of TCO No. 0611601, relating to halogen-free, crosslinkable, copolymer polyethylene, the CEO determined that no substitutable goods were produced in Australia, leading to the concession that these goods are subject to a free rate of duty as opposed to the general rate of 5%.
Key Provisions
The main operative sections of this legislation (section 269C) establish the criteria for Tariff Concession Orders (TCOs) under the Customs Act 1901, and section 269P outlines the process for making such orders. A TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. If the Chief Executive Officer of Customs (CEO) is satisfied that the application meets these criteria, the CEO must make a written order, declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. This specific instrument (Tariff Concession Instrument No. 0611601) made on 6 October 2006, applies a zero duty rate to certain halogen free, crosslinkable, copolymer polyethylene, which previously carried a general rate of duty of 5%.
The obligations imposed by the Act on the CEO and applicants are clear and straightforward. The CEO must ensure that an application for a TCO is not in respect of goods specified in section 269SJ of the Act, which prohibits certain goods from being subject to a TCO. If the application is valid, the CEO must determine whether it meets the core criteria outlined in section 269C. Additionally, the CEO is required to publish a notice in the Gazette inviting any interested parties to submit objections to the proposed TCO. This ensures transparency and provides an opportunity for stakeholders to voice any concerns. In this case, no submissions were received in response to the notice published for Tariff Concession Instrument No. 0611601.
The Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaches of the TCO provisions. However, any misuse or improper application of a TCO could potentially lead to legal action for misrepresentation or fraud, as the concessions are contingent on the goods meeting the specified criteria. The consequences of such actions would depend on the nature and extent of the breach, and would likely involve civil litigation or criminal proceedings, with penalties determined by the relevant laws governing these offences.