EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0613315
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.
Royal Selangor (Aust) Pty Ltd applied for a TCO in respect of certain ornaments and/or figurines on 8 August 2006.
Instrument
TCO No 0613315 was made on 3 November 2006. It declares that those certain ornaments and/or figurines 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. 0613315 is taken to have come into force on 8 August 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 was enacted by the Australian Parliament to regulate customs and excise duties and related matters. It provides a framework for the administration of customs and excise, including the imposition of duties, and the facilitation of trade. The Act was introduced to address the need for a comprehensive legal structure to govern the collection of customs duties and to ensure the smooth flow of international trade. The Tariff Concession Instrument No. 0613315, made under the Customs Act 1901, was introduced to provide tariff concessions for specific goods. In this instance, the instrument was enacted to address the application by Royal Selangor (Aust) Pty Ltd for a tariff concession on certain ornaments and/or figurines. The policy objective is to facilitate the importation of these goods by reducing the customs duty from the general rate of 5% to 0%. The instrument ensures that the rights of importers are beneficially affected and does not disadvantage or impose liabilities on any person other than the Commonwealth.
Scope and Application
The Tariff Concession Instrument No. 0613315, issued under the Customs Act 1901, applies to specific ornaments and/or figurines that are subject to a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. The Act is applicable to any entity or individual who imports these goods into Australia and seeks to benefit from a lower rate of customs duty as stipulated by the TCO. The instrument provides a concessional rate of duty for these goods, reducing the general rate of 5% to 0%, effective from the date the application for the concession was lodged. This legislation operates on a Commonwealth level, thereby extending its reach across all states and territories within Australia. It is important to note that the concessions do not apply to goods that are already being produced in Australia in the ordinary course of business and that serve as substitutable goods, as outlined in sections 269D, 269E, and 269F of the Customs Act 1901. The instrument itself does not specify any exclusions beyond those already stipulated in the primary Act, and its application can be further detailed or modified through subordinate instruments as necessary.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Order No. 0613315, include sections 269C, 269F, 269P, and 269SJ of the Customs Act 1901. Section 269F allows an application to be made to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. Section 269C outlines the core criteria that must be met for the CEO to decide whether to grant a TCO, namely that no substitutable goods were produced in Australia on the day the application was lodged. If the CEO is satisfied that the application meets the core criteria, section 269P mandates that a written TCO be issued. Section 269SJ details the goods that cannot be subject to a TCO. The TCO No. 0613315 was made under these provisions, declaring that certain ornaments and/or figurines are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies, with a resulting duty rate of 0%.
The obligations and requirements imposed by this Act on the parties it governs include the necessity for Royal Selangor (Aust) Pty Ltd to apply for a TCO and for the CEO to assess the application against the criteria in section 269C. The CEO is also obligated to publish a notice in the Gazette inviting submissions from interested parties, as per subsection 269K(1). The CEO must ensure that no substitutable goods were produced in Australia at the time of the application and that the goods in question do not fall under the exclusions specified in section 269SJ. Once these conditions are met, the CEO must issue a TCO as required by section 269P.
There are no explicit offences, penalties, or civil/criminal consequences stated for breaches of the TCO or the process outlined in the Customs Act 1901. However, failure to comply with the conditions set out in the Act, such as submitting an application for goods that are ineligible for a TCO, could result in the CEO declining to issue the TCO. Additionally, any misrepresentation or misleading information provided during the application process could potentially lead to administrative consequences, though specific penalties are not detailed in this legislation.