EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611804
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.
Bluescope Steel Limited applied for a TCO in respect of certain blast furnace stove temperature control fans on 14 July 2006.
Instrument
TCO No 0611804 was made on 06 October 2006. It declares that those certain blast furnace stove, temperature control fans 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. 0611804 is taken to have come into force on 14 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. 0611804, enacted in 2006, is a legislative instrument under the Customs Act 1901, designed to provide tariff concessions on certain goods. The instrument was introduced to address the need for tariff concessions that support the economic viability of specific industries by reducing the customs duty on particular goods. The instrument was enacted by the Chief Executive Officer of Customs following an application by Bluescope Steel Limited for tariff concessions on blast furnace stove temperature control fans. The policy objective of this instrument is to ensure that the application of tariff concessions does not disadvantage existing industries or impose new liabilities on individuals or entities, while providing a benefit to importers by potentially allowing them to apply for a refund of duty on goods imported since the commencement date of the concession.
Scope and Application
The Tariff Concession Instrument No. 0611804 applies to certain blast furnace stove temperature control fans, and is an instrument made under Part XVA of the Customs Act 1901, which provides for Tariff Concession Orders (TCOs) to be made by the Chief Executive Officer of Customs (the CEO). This instrument was made in response to an application by Bluescope Steel Limited, and it declares that these particular fans are subject to a lower rate of customs duty, specifically free of duty, as opposed to the general rate of 5%. The instrument came into force on 14 July 2006, the date on which the application was lodged, and does not affect the rights of any person, except to beneficially affect the rights of importers who may apply for a refund of duty on goods imported since the effective date. The instrument does not impose any liabilities on any person. The CEO is required to publish a notice in the Gazette inviting submissions from any person who considers that there are reasons why the TCO should not be made, however in this case, no submissions were received.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0611804 under the Customs Act 1901 (section 269P(3)) and the Customs Tariff Act 1995 (Schedule 4, item 50) pertain to the declaration of certain blast furnace stove temperature control fans as goods eligible for tariff concessions. This means that these specific fans, which were the subject of an application by Bluescope Steel Limited, will benefit from a zero rate of customs duty instead of the general rate of 5%. This concession is granted based on the determination that no substitutable goods were produced in Australia, as per section 269C of the Customs Act 1901. The instrument also stipulates that the concession is effective from the date the application was lodged, in this case, 14 July 2006, according to subsection 269S(1).
The obligations imposed by this Act on the parties involved, primarily Bluescope Steel Limited and the Chief Executive Officer of Customs (CEO), include ensuring that the application for a Tariff Concession Order (TCO) is valid and meets the core criteria as outlined in section 269C. For Bluescope Steel Limited, this means providing all necessary information and evidence to substantiate their claim that no substitutable goods were produced in Australia. For the CEO, the obligation is to review the application thoroughly, consult with relevant parties as required under subsection 269K(1), and if satisfied, to make a written TCO as per section 269P(3). The CEO must also publish a notice in the Gazette inviting any interested parties to lodge submissions against the TCO if they believe it should not be made.
Failure to comply with the obligations or breaching the conditions set out in the TCO could lead to various legal consequences. While the explanatory statement does not explicitly detail offences, penalties, or consequences for non-compliance, it is reasonable to infer that any breach of the Act or the terms of the TCO could result in civil or criminal penalties. Under Australian law, violations of customs regulations can lead to fines, imprisonment, or both, depending on the severity of the breach. The exact penalties would be determined by the relevant courts based on the specifics of the case, but they can include substantial financial penalties and potential imprisonment for individuals or corporate entities found guilty of non-compliance.