EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0613836
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 access control parts on 17 August 2006.
Instrument
TCO No 0613836 was made on 10 November 2006. It declares that those certain access control parts 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. 0613836 is taken to have come into force on 17 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. 0613836 was enacted in 2006 as part of the Customs Act 1901, addressing the need for streamlined tariff concessions to promote trade and industry within Australia. This instrument was introduced to provide a mechanism by which the Chief Executive Officer of Customs can grant tariff concessions to specific goods, thereby reducing the customs duty on those goods, which in turn supports economic efficiency and competitiveness. The enacting body, the Parliament of Australia, intended to facilitate smoother import processes by ensuring that certain goods are not subject to prohibitive tariffs, thus encouraging their importation and use in Australia. The overarching policy objective is to enable the import of goods that are not domestically produced, thereby enhancing access to necessary products and contributing to the overall economic development.
Scope and Application
The Tariff Concession Instrument No. 0613836 applies to the specific access control parts for which Bluescope Steel Ltd made an application under the Customs Act 1901. This Act, a Commonwealth statute, allows the Chief Executive Officer of Customs to grant tariff concessions on goods not produced in Australia, provided the application meets certain criteria and no submissions opposing the concession are received. The instrument specifically addresses the zero-rating of customs duty on the designated access control parts, reducing the duty from 5% to 0%. The scope of this Act is limited to the particular goods specified in the TCO and does not extend to other goods or industries unless separately addressed by another Tariff Concession Order. The geographic reach is national, applying uniformly across Australia as it is a Commonwealth Act. There are no exclusions or exemptions specified within the explanatory statement for this particular TCO, and any broader exclusions would be outlined in the relevant sections of the Customs Act and Customs Tariff Act. The Act’s application can be further detailed or restricted through subordinate instruments, which may provide additional definitions or operational guidelines.
Key Provisions
The main operative sections of this legislation (section 269C and subsection 269P(3) of the Customs Act 1901) allow the Chief Executive Officer of Customs (CEO) to make Tariff Concession Orders (TCOs) for specific goods, provided certain criteria are met. Section 269C stipulates that a TCO application meets the core criteria if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. If the CEO is satisfied that the application meets these criteria, they are required by subsection 269P(3) to make a written order declaring that the goods subject of the TCO application are to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. This particular TCO No. 0613836 was made on 10 November 2006, and it declares that certain access control parts are goods to which item 50 of Schedule 4 to the Tariff applies, as the CEO was satisfied that no substitutable goods were produced in Australia.
The Act imposes certain obligations and requirements on the CEO. Upon receiving a valid TCO application, the CEO must decide whether the application meets the core criteria as stipulated in section 269C of the Act. If the CEO determines that the application meets these criteria, they must make a written TCO. Furthermore, the CEO is required to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting any person who considers there are reasons why the TCO should not be made to lodge a submission with the CEO (subsection 269K(1) of the Act). In this case, the CEO did not receive any submissions in response to the published notice.
There are no direct offences, penalties, or civil/criminal consequences for breach of the Act stated in the explanatory statement. However, the consequences of failing to comply with the obligations and requirements of the Act could include the inability to obtain a TCO, which would mean the higher rate of customs duty on the goods would continue to apply. Additionally, if the CEO fails to publish the notice in the Gazette or to consider any submissions received, this could potentially lead to legal challenges or administrative actions against the CEO or the Commonwealth.