EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0615139
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.
Oaky Creek Coal Pty Ltd applied for a TCO in respect of certain underground mining roof supports parts on 27 September 2006.
Instrument
TCO No 0615139 was made on 5 January 2007. It declares that those certain underground mining roof supports 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. 0615139 is taken to have come into force on 27 September 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. 0615139 was enacted in 2007 under the Customs Act 1901. This instrument addresses the need for tariff concessions on specific goods, allowing for reduced customs duty rates for those goods that are not produced in Australia in the ordinary course of business and do not have substitutable alternatives domestically. The instrument was introduced to facilitate smoother importation of certain goods by lowering the financial burden on importers, thereby encouraging trade and economic activity. The instrument was created by the Chief Executive Officer of Customs, following an application from Oaky Creek Coal Pty Ltd for tariff concessions on underground mining roof support parts. The policy objective behind this instrument is to ensure that the importation of these goods is not hindered by prohibitive tariff rates, thus supporting the efficient functioning of industries reliant on these imports.
Scope and Application
The Customs Act 1901, as amended and applied through Tariff Concession Orders (TCOs), applies to any person or entity seeking to import goods into Australia that may benefit from a reduced rate of customs duty. Specifically, it pertains to those who apply for a TCO, ensuring that the goods in question are not substitutable by locally produced goods and meet the criteria set forth in the Act. This legislation operates on a national level, affecting all states and territories within Australia. The TCOs are issued by the Chief Executive Officer of Customs (CEO) and provide for reduced duty rates on specific imported goods, provided no substitutable goods are produced in Australia at the time of the application. The scope of the Act is further defined by exclusions, such as those specified in section 269SJ, which lists goods that cannot be subject to a TCO. Additionally, the Act allows for the extension and restriction of its application through subordinate instruments, facilitating a dynamic approach to managing tariff concessions in response to changing economic and industrial conditions.
Key Provisions
The Tariff Concession Order (TCO) No. 0615139 under the Customs Act 1901 (section 269F) allows for a lower rate of customs duty on specific goods, in this case, certain underground mining roof supports parts. This order was issued by the Chief Executive Officer of Customs (CEO) following an application by Oaky Creek Coal Pty Ltd on 27 September 2006. The TCO was made on 5 January 2007 and specifies that these parts are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, reducing the duty from a general rate of 5% to 0%.
The Act imposes several obligations on the parties involved. Firstly, any person wishing to apply for a TCO must ensure that the goods in question are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. The CEO must then assess whether the application meets the core criteria set out in section 269C, which requires that no substitutable goods were produced in Australia on the day the application was lodged. Additionally, the CEO is required to publish a notice in the Gazette (subsection 269K(1)) inviting any interested parties to submit objections to the TCO. In this case, no submissions were received.
Failure to comply with the provisions of the Customs Act 1901 or the terms of the TCO can result in legal consequences. While specific offences and penalties are not detailed in the explanatory statement, general provisions within the Act provide for civil and criminal penalties for breaches. These can include fines and imprisonment, depending on the severity of the offence. For example, section 229 of the Act imposes penalties for knowingly making a false statement or representation, which could apply if a TCO application contains false information.
In summary, TCO No. 0615139 provides a zero per cent duty rate on certain underground mining roof supports parts, effective from 27 September 2006. The CEO must ensure that applications meet the core criteria and that the public is given an opportunity to comment on the proposed concession. Non-compliance with the Act or the TCO can lead to civil or criminal penalties, although specific penalties are not detailed in this particular explanatory statement.