EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0615442
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.
Encore Tissue (Aust) Pty Ltd applied for a TCO in respect of certain bathroom tissue and/or paper towel roll bundler parts on 05 October 2006.
Instrument
TCO No 0615442 was made on 15 December 2006. It declares that those certain bathroom tissue and/or paper towel roll bundler 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 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. 0615442 is taken to have come into force on 05 October 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. 0615442, enacted in 2006, amends the Customs Act 1901 to address the issue of providing tariff concessions for certain goods, in this instance, bathroom tissue and/or paper towel roll bundler parts. This legislative instrument was introduced to provide relief from customs duties for goods that are not produced in Australia and for which there are no substitutable alternatives. The Customs Act 1901, overseen by the Parliament of Australia, allows the Chief Executive Officer of Customs to grant Tariff Concession Orders (TCOs) to reduce customs duty rates on specific imported goods if certain criteria are met, such as the absence of Australian-produced substitutable goods. The policy objective of this particular TCO was to ensure that Encore Tissue (Aust) Pty Ltd could import the specified parts for their bathroom tissue and paper towel production at a reduced customs duty rate, thereby potentially lowering the cost of these goods for consumers and businesses in Australia.
Scope and Application
The Tariff Concession Instrument No. 0615442 under the Customs Act 1901 applies to the specific goods for which Encore Tissue (Aust) Pty Ltd applied, namely certain bathroom tissue and/or paper towel roll bundler parts. The Act facilitates the application process for tariff concessions by allowing the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) when certain conditions are met, such as the absence of substitutable goods produced in Australia. The instrument extends to the entire Commonwealth of Australia, impacting all entities and individuals involved in the importation of these specified goods. The scope of the Act ensures that any person or entity importing the specified goods can benefit from the reduced duty rate as outlined in the TCO. The Act does not specify exclusions but relies on the criteria outlined in sections 269C and 269SJ, which exclude certain goods from eligibility for tariff concessions. The application of the Act can be further defined through subordinate instruments, which may detail additional conditions or classifications relevant to the concession.
Key Provisions
The primary sections of the Customs Act 1901 (the Act) relevant to Tariff Concession Orders (TCO) are sections 269C, 269B, 269D, 269E, and 269F (section 269C). These sections establish the criteria for the application of TCOs, define key terms such as "substitutable goods," "ordinary course of business," and "goods produced in Australia," and outline the process for applying for a TCO. Specifically, section 269C requires that a TCO application meets core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. The definitions and requirements for these terms are provided in sections 269B, 269D, and 269E.
The obligations and requirements imposed by the Act on parties or entities include the submission of a valid application to the Chief Executive Officer of Customs (the CEO) for a TCO (section 269F). The CEO must then decide whether the application meets the core criteria, as defined by section 269C. Additionally, 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 (subsection 269K(1)). If no submissions are received, the CEO must make a written order (the TCO) if satisfied that the application meets the core criteria (subsection 269P(3)).
The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breach of its provisions related to TCOs. However, the failure to comply with the requirements for making a TCO application or the failure of the CEO to follow the prescribed process could potentially lead to legal challenges or administrative actions, though specific penalties are not detailed in the provided text. 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.
In summary, the Act provides a structured process for the application and approval of Tariff Concession Orders, ensuring that goods subject to a TCO benefit from a lower rate of customs duty. The obligations on applicants and the CEO are clearly defined, and while the Act does not specify penalties for non-compliance, the process itself is designed to be transparent and inclusive, allowing for public submissions before a decision is made. The rights of importers are protected, and the TCO does not impose any new liabilities.