EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611947
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.
Pharmapac Pty Ltd applied for a TCO in respect of certain cylindrical, aluminium, aerosol containers on 18 July 2006.
Instrument
TCO No 0611947 was made on 06 October 2006. It declares that those certain cylindrical, aluminium, aerosol containers 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. 0611947 is taken to have come into force on 18 July 200606 October 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. 0611947, enacted in 2006, amends the Customs Act 1901 by introducing tariff concessions for certain cylindrical, aluminium, aerosol containers. This legislative instrument was introduced to address the need for tariff relief for specific goods that are not produced domestically and to facilitate trade by reducing customs duty on these imported goods. Enacted by the Chief Executive Officer of Customs in accordance with section 269F of the Customs Act 1901, the primary policy objective is to ensure that Australian importers of these goods benefit from a reduced rate of customs duty, thereby promoting competitive pricing and potentially increasing market access for these products. The instrument does not impose any disadvantage or liabilities on persons other than the Commonwealth and is designed to take effect from the date the application was lodged.
Scope and Application
The Tariff Concession Instrument No. 0611947 under the Customs Act 1901 applies to specific goods for which a Tariff Concession Order (TCO) has been made by the Chief Executive Officer of Customs (CEO). The Act facilitates the application process for individuals or entities seeking a lower rate of customs duty on particular goods, provided they meet the specified criteria and no substitutable goods are produced in Australia. The geographic reach of this legislation is national, as it pertains to the application and administration of customs duties across Australia. The Act applies to anyone eligible to apply for a TCO, including importers and manufacturers, but excludes goods that cannot be subject to a TCO as specified in section 269SJ. This instrument extends the application of the Customs Act by allowing the CEO to create TCOs under the prescribed conditions, thereby reducing the duty on certain specified goods. The commencement of this particular TCO, which pertains to cylindrical, aluminium, aerosol containers, aligns with the date of the application, ensuring the effective date of the concession is clearly defined.
Key Provisions
The main operative sections of the Customs Act 1901, as referenced in Tariff Concession Instrument No. 0611947, primarily revolve around the conditions and procedures for applying for and granting a Tariff Concession Order (TCO) (sections 269C, 269B, 269D, 269E, and 269P(3)). Section 269C stipulates that a TCO application meets the core criteria if no substitutable goods were produced in Australia on the day the application was lodged. Definitions of key terms like 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are provided in sections 269D, 269E, and the relevant subsections. If the Chief Executive Officer (CEO) of Customs is satisfied that these criteria are met, they are required under section 269P(3) to issue a written TCO.
The obligations imposed by the Act on parties and entities it governs include the requirement for any person to apply to the CEO for a TCO if they wish to benefit from a lower rate of customs duty (section 269F). The CEO must then determine if the application meets the core criteria and, if so, issue a TCO (sections 269C and 269P(3)). Additionally, the CEO is obligated to publish a notice in the Gazette, inviting submissions from any interested parties who may have reasons why the TCO should not be granted (subsection 269K(1)). In this specific instance, no submissions were received.
The Act also delineates the consequences for non-compliance with its provisions. While the explanatory statement does not explicitly detail offences or penalties for breaching the conditions of a TCO, general provisions within the Customs Act and related regulations would typically apply. These might include fines or imprisonment for knowingly making false statements or misrepresentations in an application, or for attempting to import goods in a way that circumvents the provisions of a TCO. However, specific penalties would need to be referred to within the broader Customs Act or associated regulations for precise details.