EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0615551
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 steel making ladle nozzle filler on 9 October 2006.
Instrument
TCO No 0615551 was made on 15 December 2006. It declares that those certain steel making ladle nozzle filler 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. 0615551 is taken to have come into force on 9 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 Customs Act 1901, enacted by the Parliament of Australia, governs the administration of customs and excise duties in Australia. It includes a scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs. This scheme allows for a lower rate of customs duty on goods that are the subject of a TCO. The Tariff Concession Instrument No. 0615551, made in 2006, aims to address the issue of applying tariff concessions to certain steel making ladle nozzle fillers by Bluescope Steel Ltd, ensuring no substitutable goods were produced in Australia. This instrument was introduced to provide tariff concessions to support Australian industries by making certain goods more competitively priced in the domestic market, thereby promoting economic growth and industry development. The instrument was effective from the date the application was lodged, and it did not impose any liabilities on any person, while providing benefits to importers who could apply for a refund of duty.
Scope and Application
The Tariff Concession Instrument No. 0615551, made under the Customs Act 1901, applies to specific steel making ladle nozzle fillers that Bluescope Steel Ltd sought a tariff concession for, effective from 9 October 2006. This instrument is applicable to the entities involved in the production or importation of these goods within Australia, specifically granting a concession on the customs duty that would otherwise be levied. The application of this TCO is determined by the Chief Executive Officer of Customs, who ensures that the goods in question do not have substitutable alternatives produced in Australia, thereby qualifying for the tariff concession. The geographic reach of this Act is national, applying across Australia in accordance with the federal legislative framework. There are no exemptions or exclusions specified for this particular concession, and no subordinate instruments are referenced that would extend or restrict its application. The tariff rate for these goods is reduced from the general rate of 5% to 0%, providing a direct benefit to importers who can apply for refunds on duties paid before the TCO took effect.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0615551 under the Customs Act 1901 involve the declaration of specific steel making ladle nozzle fillers as eligible for a tariff concession order (TCO). Section 269F permits an application for a TCO, while section 269C outlines the criteria that must be met for the application to proceed, ensuring that no substitutable goods were produced in Australia at the time the application was lodged (subsection 269P(3)). The instrument itself, section 269P(3), declares that the specified steel making ladle nozzle fillers are subject to a 0% duty rate as opposed to the general rate of 5% under the Customs Tariff Act 1995.
The Act imposes several obligations on the parties involved. For instance, section 269K(1) requires the Chief Executive Officer of Customs (CEO) to publish a notice in the Gazette inviting submissions from interested parties once an application is accepted as valid. Additionally, section 269S(1) mandates that the TCO is considered to have come into effect on the day the application was lodged. The CEO is also required to ensure that the application meets the core criteria as outlined in section 269C, which includes verifying that no substitutable goods were produced in Australia.
Breaching the requirements set forth in the Customs Act 1901 can lead to various civil and criminal consequences. Although specific offences and penalties are not detailed in the explanatory statement, it is known that failure to comply with the Act's provisions could result in legal actions. The Act allows for enforcement actions against those who do not adhere to the stipulated criteria for TCO applications or misuse the tariff concessions. The penalties for such breaches could include fines and other legal repercussions as prescribed under the Act and related regulations.
In conclusion, Tariff Concession Instrument No. 0615551 provides a mechanism for reducing customs duty on certain steel making ladle nozzle fillers to 0% under specific conditions. The Act imposes obligations on the CEO to process applications correctly and to ensure public consultation, while also setting the stage for potential legal actions against non-compliance with the Act's provisions. The tariff concession is designed to benefit importers without imposing new liabilities on any party.