EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611854
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.
Silent Gliss Pty Ltd applied for a TCO in respect of certain roller blind parts on 13 July 2006.
Instrument
TCO No 0611854 was made on 22 September 2006. It declares that those certain roller blind parts 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 0%.
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. 0611854 is taken to have come into force on 13 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, enacted by the Australian Parliament, established a framework for the regulation of customs and excise duties. This legislation introduced the concept of Tariff Concession Orders (TCOs), which the Chief Executive Officer of Customs can issue to provide tariff concessions on certain goods. The Tariff Concession Instrument No. 0611854, made in 2006, is an example of such an order. This particular instrument responds to an application from Silent Gliss Pty Ltd for a tariff concession on specific roller blind parts. The problem it addresses is the need for a streamlined process to reduce customs duties on goods for which there are no substitutable Australian-made alternatives. The policy objective behind this instrument is to facilitate trade by lowering import costs for the beneficiaries, thereby potentially stimulating economic activity and supporting businesses in importing necessary components.
Scope and Application
The Tariff Concession Instrument No. 0611854, made under Part XVA of the Customs Act 1901, applies to individuals or entities seeking tariff concessions on specific goods imported into Australia. This instrument was enacted to address an application by Silent Gliss Pty Ltd for tariff concessions on certain roller blind parts. The instrument is effective from 13 July 2006, the date the application was lodged, and it specifically reduces the customs duty on these goods from 5% to 0%. The instrument applies nationally across Australia, following the provisions of the Customs Act 1901, which is a Commonwealth Act. The instrument does not apply to goods specified in section 269SJ of the Customs Act 1901, which outlines goods that cannot be subject to a tariff concession. No submissions were received in response to the publication of the application in the Gazette, indicating no objections were raised against the concession. The instrument does not disadvantage any person other than the Commonwealth and does not impose any liabilities on persons other than the Commonwealth in respect of actions taken before the instrument's registration.
Key Provisions
The Tariff Concession Order (TCO) No. 0611854, made under section 269P of the Customs Act 1901, specifies that certain roller blind parts are subject to a lower rate of customs duty. Section 269P(3) requires the Chief Executive Officer of Customs (CEO) to issue a written TCO if satisfied that the application meets the core criteria, which includes ensuring that no substitutable goods are produced in Australia on the date the application was lodged (section 269C). The TCO declares that these roller blind parts are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, reducing the duty rate from the general rate of 5% to 0%.
The Act imposes several obligations on the parties involved. Firstly, any person who wishes to apply for a TCO must ensure their application is not in respect of goods specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO (subsection 269K(1)). Once an application is accepted as valid, the CEO must publish a notice in the Gazette inviting submissions from any interested parties (subsection 269K(1)). The CEO must also ensure that the application meets the core criteria by confirming that no substitutable goods were produced in Australia on the date the application was lodged (section 269C).
Failure to comply with the provisions of the Customs Act 1901 can result in various consequences. Although specific offences and penalties are not detailed in the explanatory statement, breaches of the Act can generally lead to civil or criminal penalties. For instance, any person who fails to comply with the provisions of the Act or any regulations made under the Act may be subject to fines, imprisonment, or both, depending on the severity and nature of the breach. The maximum penalties would be in accordance with the provisions of the Customs Act and related regulations. Additionally, the Act ensures that the rights of non-Commonwealth persons are not adversely affected by the TCO, and it does not impose any new liabilities on any person.