EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0613649
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.
Bluescope Steel Ltd applied for a TCO in respect of certain laminator rolls applicator on 16 August 2006.
Instrument
TCO No 0613649 was made on 10 November 2006. It declares that those certain laminator rolls applicator 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. 0613649 is taken to have come into force on 16 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, enacted by the Australian Parliament, establishes a framework for the regulation of customs and excise duties. Specifically, Part XVA of the Act introduces a scheme for Tariff Concession Orders (TCOs), which allow for the application of lower rates of customs duty on specified goods. This was introduced to address the gap in providing relief from customs duties on imported goods where no substitutable goods are produced in Australia. Tariff Concession Instrument No. 0613649 was made under this scheme on 10 November 2006, following an application by Bluescope Steel Ltd for a TCO on certain laminator rolls applicator. The instrument declares that these specific goods are subject to a 0% duty rate, as no substitutable goods were produced in Australia, thus meeting the core criteria set out in the Act. The policy objective is to ensure that importers of these goods can benefit from reduced duty rates, thereby potentially enhancing the competitiveness of Australian industries that rely on such imports.
Scope and Application
The Tariff Concession Instrument No. 0613649, made under the Customs Act 1901, applies to specific goods that are the subject of an application for a Tariff Concession Order (TCO). The Act enables the Chief Executive Officer of Customs (CEO) to grant TCOs which reduce the rate of customs duty on goods, provided certain conditions are met. This particular instrument, made on 10 November 2006, pertains to certain laminator rolls applicator for which Bluescope Steel Ltd applied on 16 August 2006. The TCO applies to these goods by declaring them to be subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, resulting in a reduction of the duty rate from 5% to 0%. The Act stipulates that TCOs are applicable nationwide, covering all entities and persons involved in the importation of the specified goods, provided they comply with the conditions set out in the Act. The instrument does not affect any pre-existing rights of persons other than the Commonwealth and does not impose any new liabilities on such persons.
Key Provisions
The Tariff Concession Order (TCO) No. 0613649, made under section 269F of the Customs Act 1901, pertains specifically to certain laminator rolls applicator. This instrument is significant because it grants a tariff concession, reducing the customs duty on these goods from 5% to 0%. This reduction applies if the goods are imported on or after 16 August 2006, the date on which the application for the TCO was lodged (subsection 269S(1)). The order was formally made on 10 November 2006, and it aligns these goods with item 50 of Schedule 4 to the Customs Tariff Act 1995.
To ensure transparency and fairness, the Chief Executive Officer of Customs (CEO) was required by subsection 269K(1) of the Customs Act to publish a notice in the Gazette once the application was accepted as valid. This notice invited any interested parties to submit any objections or submissions they might have regarding the TCO. In this instance, the CEO did not receive any such submissions, indicating that no objections were raised against the application.
The obligations imposed by the Customs Act on the parties involved are primarily concerned with ensuring that the goods in question do not have substitutable equivalents produced in Australia. Specifically, under section 269C, the CEO must verify that no substitutable goods were produced in Australia on the day the application was lodged. This verification is crucial as it confirms the eligibility of the goods for the tariff concession. The CEO's role in this process is to act on the application and make a written order if the core criteria are met, as outlined in section 269P(3) of the Act.
Failing to comply with the provisions of the Customs Act or the terms of a TCO can result in significant consequences. Although the explanatory statement does not detail specific offences or penalties related to the TCO itself, general provisions within the Customs Act may apply. Violations of the Act can lead to both civil and criminal penalties, depending on the nature and severity of the breach. Civil penalties could include fines, while criminal penalties might involve imprisonment, reflecting the seriousness with which the Act treats non-compliance. It is essential for all parties to adhere to the requirements set out in the Act to avoid these potential repercussions.