EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611943
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.
Mining Industrial Resource Supplies Pty Ltd applied for a TCO in respect of certain steel reinforced conveyor belts on 17 July 2006.
Instrument
TCO No 0611943 was made on 29 September 2006. It declares that those certain steel reinforced conveyor belts 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. 0611943 is taken to have come into force on 17 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. 0611943 was enacted under the Customs Act 1901 to address the need for tariff concessions on certain imported goods, in this case, steel reinforced conveyor belts. This instrument was introduced to provide a lower rate of customs duty on specified goods that are not produced in Australia and for which no suitable Australian-made alternatives exist. The enacting authority for this instrument is the Chief Executive Officer of Customs, who is tasked with deciding whether an application for a Tariff Concession Order meets the necessary criteria. The primary policy objective is to facilitate trade by reducing import costs for goods that cannot be domestically produced, thereby encouraging the use of imported products in specific industries. The instrument came into effect on the date the application was lodged, 17 July 2006, and it does not retroactively affect the rights of any person, ensuring that it only benefits those importing the specified goods from the date of its enactment.
Scope and Application
The Tariff Concession Instrument No. 0611943 under the Customs Act 1901 applies to the process of granting tariff concession orders (TCOs) for specific goods, in this case, certain steel reinforced conveyor belts. The Act facilitates the application by a person for a TCO, allowing for a lower rate of customs duty on goods not produced in Australia in the ordinary course of business and for which no substitutable goods are produced domestically. The application process is overseen by the Chief Executive Officer of Customs (CEO), who must ensure that the goods in question do not fall under the exclusions specified in section 269SJ of the Act. The application is subject to scrutiny to confirm it meets the core criteria outlined in sections 269C, 269B, and 269D of the Act. Should the CEO be satisfied with the application, a TCO is issued, declaring that the specified goods will be subject to a reduced duty rate as outlined in the Customs Tariff Act 1995. This legislative framework ensures that the rights of importers are protected and that any existing duties can be refunded retroactively from the date the TCO is deemed to have come into force. The application and issuance of TCOs are subject to public consultation, although in this instance, no submissions were received. The TCO is effective from the date the application was lodged, providing immediate benefit to the applicant and potentially to other importers of similar goods.
Key Provisions
The primary operative sections of Tariff Concession Instrument No. 0611943, under the Customs Act 1901, pertain to the concession of tariff rates for certain goods. Specifically, section 269F allows for an application to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) regarding goods (s. 269F). If the CEO determines that the application is valid and meets the core criteria, they are mandated to issue a written TCO (s. 269C and s. 269P(3)). This instrument, TCO No. 0611943, concerns steel reinforced conveyor belts and declares that these goods are subject to a free rate of duty instead of the general rate of 5% (Schedule 4, item 50, Customs Tariff Act 1995).
The obligations imposed by this Act on the parties involved, particularly the CEO, include accepting valid applications for TCOs, ensuring that the applications meet the core criteria as outlined in section 269C, and publishing notices in the Gazette to invite submissions from interested parties (s. 269K(1)). In this specific case, Mining Industrial Resource Supplies Pty Ltd applied for the TCO on 17 July 2006, and no submissions were received in response to the published notice. The CEO's role also involves verifying that no substitutable goods are produced in Australia, which was confirmed for this application.
In terms of offences, penalties, and consequences for breach, the Act does not explicitly detail these within the specific instrument. However, any failure by the CEO to comply with the statutory requirements, such as not publishing notices or not processing valid applications, could potentially lead to legal challenges or administrative reviews. Moreover, any misuse of the tariff concessions by importers could result in penalties under the Customs Act, including fines and potential criminal charges for fraudulent activities. The exact penalties would depend on the specific breaches and the relevant sections of the Customs Act and associated regulations.