EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0615847
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.
Columbit Australia Pty Ltd applied for a TCO in respect of certain meat tumblers and/or massagers on 16 October 2006.
Instrument
TCO No 0615847 was made on 5 January 2007. It declares that those certain meat tumblers and/or massagers 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. 0615847 is taken to have come into force on 16 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 was amended to include the Tariff Concession Orders (TCO) scheme, which was enacted to provide relief for businesses that import goods which are not produced domestically, thereby encouraging competition and consumer choice. The Tariff Concession Instrument No. 0615847, made under this scheme, was introduced to address the specific need of Columbit Australia Pty Ltd to import certain meat tumblers and massagers at a reduced customs duty rate. The Commonwealth Parliament, through the Chief Executive Officer of Customs, is the enacting body responsible for the administration of this scheme. The policy objective of this legislation is to ensure that consumers have access to a broader range of products by reducing customs duty on imported goods that do not have domestic substitutes, thereby promoting economic efficiency and consumer welfare.
Scope and Application
The Tariff Concession Instrument No. 0615847 pertains to the Customs Act 1901, specifically addressing the application and implementation of Tariff Concession Orders (TCOs) concerning certain meat tumblers and/or massagers. The Act applies to any entity or individual who seeks a tariff concession for goods imported into Australia. The instrument provides a lower rate of customs duty for these specified goods, contingent upon the approval of the Chief Executive Officer of Customs, who determines if the application for a TCO meets the core criteria established under the Act. The geographic scope of this legislation is national, as it concerns the importation of goods into Australia and the application of customs duties on those goods. The Act does not apply to goods specified in section 269SJ of the Customs Act 1901, which outlines goods that cannot be subject to a TCO. The application process includes a requirement for the CEO to publish a notice in the Gazette inviting submissions, although in this case, no submissions were received. The commencement date of the TCO is the date on which the application was lodged, and it does not affect any existing rights or liabilities of persons other than the Commonwealth.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0615847, made under the Customs Act 1901, provide for a tariff concession order (TCO) for certain meat tumblers and/or massagers. Specifically, section 269F allows an application to the Chief Executive Officer (CEO) of Customs for a TCO, provided the goods are not those specified in section 269SJ. If the application meets the core criteria in section 269C, the CEO must make a written order under section 269P(3), declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. In this case, the CEO made TCO No. 0615847, declaring that the specified meat tumblers and/or massagers are subject to item 50 of Schedule 4, with a duty rate of 0%, down from the general rate of 5%.
The Act imposes several obligations on parties and entities it governs. Under section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any person who considers there are reasons why the TCO should not be made. This ensures transparency and allows interested parties to voice any objections. Additionally, section 269S(1) provides that a TCO is taken to have come into force on the day on which the application for the TCO was lodged. The TCO does not affect the rights of any person as at the date of registration, ensuring that existing rights and liabilities are not adversely impacted.
Failure to comply with the provisions of the Customs Act 1901 can result in both civil and criminal consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of customs laws generally can lead to fines and imprisonment. For example, under section 269BA, providing false or misleading information in an application can result in a penalty of up to five years' imprisonment or a fine of up to 5,000 penalty units, or both. Similarly, using a TCO unlawfully can attract penalties, including fines and imprisonment. The precise penalties for specific breaches would be found in the relevant sections of the Customs Act 1901 and the Customs Regulations 1995.