EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0612053
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.
NSW Police Armoury applied for a TCO in respect of certain ammunition primers on 19 July 2006.
Instrument
TCO No 0612053 was made on 06 October 2006. It declares that those certain ammunition primers 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. 0612053 is taken to have come into force on 19 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. 0612053, enacted in 2006 under the Customs Act 1901, was introduced to address the issue of applying tariff concessions on specific goods imported into Australia. This legislative instrument allows the Chief Executive Officer of Customs to reduce or eliminate customs duty on certain goods when it is determined that no substitutable goods are produced domestically. The aim is to facilitate the importation of goods that are either unique or critical for certain industries, thereby potentially lowering costs and increasing availability of these goods. The policy objective aligns with broader economic strategies to support specific sectors by reducing import costs, thereby enhancing competitiveness without disadvantaging existing domestic producers.
The enactment of this instrument by the relevant authority within the Australian government ensures that applications for tariff concessions are assessed against specific criteria, including the non-production of substitutable goods in Australia. The process requires public consultation, although in this instance, no objections were received. The commencement date of the concession coincides with the date the application was lodged, providing immediate benefit to importers and ensuring that no retrospective liabilities are imposed on any party.
Scope and Application
The Customs Act 1901 applies to a broad range of persons and entities involved in the importation and exportation of goods, particularly those subject to customs duties. Specifically, the Act is relevant to applicants for Tariff Concession Orders (TCOs), which are made under section 269F of the Act by the Chief Executive Officer of Customs (the CEO) to provide lower rates of customs duty on certain goods. The Act applies to any person or entity that meets the core criteria as outlined in sections 269C and 269SJ of the Act, ensuring that the goods in question are not substitutable by goods produced in Australia and do not fall under the list of excluded goods. The geographic reach of the Act is national, as it pertains to customs duties across Australia. The application of the Act is further extended or restricted through subordinate instruments such as the Customs Tariff Act 1995, which details specific tariff rates. The Act does not disadvantage any person other than the Commonwealth and does not impose liabilities on individuals or entities for actions taken prior to the registration of the TCO.
Key Provisions
The main operative sections of this legislation, namely sections 269C, 269P(3), and 269S(1) of the Customs Act 1901, provide a framework for the Chief Executive Officer of Customs (CEO) to assess and make Tariff Concession Orders (TCOs). Section 269C stipulates that 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 CEO is satisfied that the application meets these core criteria, they must make a written order declaring that the goods in question are subject to a specified concessionary rate of duty as outlined in Schedule 4 of the Customs Tariff Act 1995 (section 269P(3)). Additionally, section 269S(1) stipulates that a TCO is taken to have come into force on the day the application for the TCO was lodged. These provisions allow for the application of a lower rate of customs duty on certain goods, provided they meet the specified conditions.
The obligations and requirements imposed by this legislation on the parties it governs are primarily directed towards the CEO of Customs. The CEO is required to assess TCO applications to determine if they meet the core criteria specified in section 269C of the Customs Act 1901. If the application meets these criteria, the CEO must make a written order declaring that the goods in question are subject to the concessionary rate of duty (section 269P(3)). Furthermore, as soon as practicable after accepting a TCO application as valid, the CEO must publish a notice in the Gazette inviting any person who believes there are reasons why the TCO should not be made to lodge a submission (subsection 269K(1) of the Act). In the case of TCO No. 0612053, the CEO did not receive any submissions in response to this invitation.
The legislation does not explicitly state any offences or penalties for breach. However, it is reasonable to infer that any non-compliance with the requirements to accurately assess and process TCO applications could lead to legal consequences. The precise nature of these consequences would depend on the specific circumstances and the broader legal framework governing the Customs Act 1901. For instance, if the CEO fails to adhere to the statutory requirements in making a TCO, this could potentially lead to legal challenges or administrative penalties. Similarly, any party that deliberately misrepresents information in an application could face legal consequences under the general provisions of the Customs Act 1901 or other relevant legislation.