EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0613481
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.
Kimberly-Clark Australia Pty Ltd applied for a TCO in respect of certain toilet and/or paper towel roll conveyors on 14 August 2006.
Instrument
TCO No 0613481 was made on 03 November 2006. It declares that those certain toilet and/or paper towel roll conveyors 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. 0613481 is taken to have come into force on 14 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 Tariff Concession Instrument No. 0613481, enacted in 2006 under the Customs Act 1901, addresses the need to provide tariff concessions for specific goods, in this case, certain toilet and/or paper towel roll conveyors, manufactured by Kimberly-Clark Australia Pty Ltd. The Customs Act 1901 established a framework through which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO), granting reduced customs duty rates for specified goods. The primary objective of this legislation, as stated in the explanatory statement, is to ensure that no substitutable goods are produced in Australia in the ordinary course of business. The CEO was satisfied that no such goods existed for the specified conveyors, leading to the issuance of TCO No. 0613481. The policy objective behind this concession is to facilitate trade by reducing duty burdens on certain imported goods, thereby benefiting importers who can apply for duty refunds for goods imported since the TCO's effective date, 14 August 2006.
Scope and Application
The Customs Act 1901, through its Tariff Concession Instrument No. 0613481, pertains to the application of Tariff Concession Orders (TCOs) for specific goods, in this case, certain toilet and/or paper towel roll conveyors. This legislation applies to any person or entity seeking a reduction in the customs duty on these particular goods. The Act facilitates the application process whereby if a person applies to the Chief Executive Officer of Customs (CEO) for a TCO and the application meets the core criteria, a lower rate of customs duty applies to the goods in question. Notably, the Act restricts the application of TCOs to goods not specified in section 269SJ, which lists goods that cannot be subject to a TCO. The geographic and jurisdictional reach of this Act is national, governed by the Commonwealth, and applies across Australia.
The Act extends its application through subordinate instruments, such as the Customs Tariff Act 1995, which outlines the specific tariff rates. The TCO No. 0613481, in this context, exempts the specified conveyors from the general duty rate of 5%, instead applying a free rate upon satisfying the core criteria. This instrument ensures that the application process is transparent, with any interested party able to lodge a submission with the CEO if they believe a TCO should not be made. In this instance, no such submissions were received. The commencement of the TCO is effective from the date the application was lodged, which in this case was 14 August 2006, and it does not disadvantage any person or impose liabilities for actions taken prior to its registration.
Key Provisions
The Tariff Concession Instrument No. 0613481, under the Customs Act 1901, pertains to the concession of customs duties for specific goods. The instrument, which was issued on 3 November 2006, applies to certain toilet and/or paper towel roll conveyors (section 269C). It specifies that these goods are subject to a free rate of duty instead of the general rate of 5% (section 269P(3)). The instrument is based on the principle that no substitutable goods are produced in Australia, thereby meeting the core criteria for a Tariff Concession Order (TCO) (section 269SJ).
The Customs Act 1901 imposes certain obligations on the Chief Executive Officer of Customs (CEO) and applicants for TCOs. The CEO must ensure that any application for a TCO is made in accordance with the provisions of the Act, particularly under section 269F. The CEO must also decide whether the application meets the core criteria, which include verifying that no substitutable goods are produced in Australia at the time of application (section 269C). If the application meets the criteria, the CEO must issue a written TCO (section 269P(3)). Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any person who might oppose the making of the TCO (subsection 269K(1)).
Failure to comply with the provisions of the Customs Act 1901 and the associated regulations can result in various consequences. While the specific penalties are not detailed in the explanatory statement, breaches of the Act or regulations could potentially lead to civil or criminal penalties. The exact nature and severity of these penalties would depend on the specific provisions breached and would be determined in accordance with relevant laws. It is important for parties subject to the Act to adhere to its requirements to avoid any legal repercussions.