EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0613956
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 Limited applied for a TCO in respect of certain blast furnace copper staves on 23 August 2006.
Instrument
TCO No 0613956 was made on 17 November 2006. It declares that those certain blast furnace copper staves 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. 0613956 is taken to have come into force on 23 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. 0613956, enacted in 2006, is an instrument under the Customs Act 1901 designed to provide tariff concessions for certain imported goods. This instrument was introduced to address the need for facilitating trade by reducing the customs duty on specific goods, thereby making them more competitively priced in the Australian market. The instrument was enacted by the Chief Executive Officer of Customs in response to an application by Bluescope Steel Limited for tariff concessions on particular blast furnace copper staves. The policy objective behind this instrument is to encourage the import of goods that are not produced domestically, ensuring that Australian consumers and businesses have access to a broader range of products at potentially lower costs. The instrument effectively lowers the duty on these specific copper staves from 5% to free, aligning with the broader aim of promoting fair trade practices and economic efficiency.
Scope and Application
The Tariff Concession Instrument No. 0613956 under the Customs Act 1901 applies to entities and individuals involved in the importation of certain blast furnace copper staves, effectively granting a concession on the rate of customs duty on these goods. Specifically, the Instrument pertains to the application made by Bluescope Steel Limited and relates to goods specified in item 50 of Schedule 4 to the Customs Tariff Act 1995. The Instrument's application extends across the Commonwealth of Australia and comes into effect on the date the application was lodged, which was 23 August 2006. This Instrument does not apply to goods specified in section 269SJ of the Customs Act 1901, which are ineligible for tariff concessions. The Chief Executive Officer of Customs made the decision to grant the concession after ensuring that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The TCO does not affect any pre-existing rights or impose any new liabilities on persons other than the Commonwealth.
Key Provisions
The Tariff Concession Instrument No. 0613956, under section 269P(3) of the Customs Act 1901, establishes a tariff concession order (TCO) that provides a lower rate of customs duty on specific goods. In this case, the concession applies to certain blast furnace copper staves, which are now subject to a duty rate of free, as opposed to the general rate of 5%. Section 269C stipulates that a TCO can be granted if the Chief Executive Officer (CEO) of Customs determines that, on the date the application was submitted, no substitutable goods were produced in Australia in the ordinary course of business.
The obligations under this Act are primarily on the CEO of Customs. According to section 269K(1), once a TCO application is accepted as valid, the CEO must publish a notice in the Gazette, inviting any interested parties to submit their reasons why the TCO should not be granted. This ensures transparency and allows for public input. In the case of Instrument 0613956, no submissions were received, leading to the CEO's decision to proceed with the TCO.
Breaches of the provisions set out in the Customs Act 1901 can lead to various legal consequences. For example, section 269SJ specifies certain goods that cannot be subject to a TCO, and any attempt to apply for a concession on these goods could result in administrative penalties. Additionally, section 126(1)(r) of the Regulations allows for the possibility of civil consequences if an entity fails to comply with the refund provisions for duty on goods imported under a TCO. The maximum penalties for such offences are not explicitly stated in the provided text but would typically be outlined in related legislation or regulations.