EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0616110
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.
Richard Karl Hill applied for a TCO in respect of certain cheese portion fillers on 29 August 2006.
Instrument
TCO No 0616110 was made on 17 November 2006. It declares that those certain cheese portion fillers 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. 0616110 is taken to have come into force on 29 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 Customs Act 1901, enacted by the Commonwealth Parliament, established a framework within which Tariff Concession Orders (TCOs) could be issued by the Chief Executive Officer of Customs. These orders provide a lower rate of customs duty on specific goods, subject to certain conditions. The Tariff Concession Instrument No. 0616110, enacted in 2006, responds to the need for targeted tariff concessions to support economic activities by reducing the cost of imported goods. This particular instrument was introduced following an application by Richard Karl Hill for tariff concessions on certain cheese portion fillers. The objective was to ensure that these goods, which had no substitutable Australian-produced equivalents, could benefit from reduced customs duty, thereby promoting economic efficiency and competitiveness. The process involved publishing a notice in the Gazette to allow for public submissions, though none were received in this instance. The TCO came into effect on the date of the application, 29 August 2006, without retroactively affecting any rights or imposing new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0616110, which pertains to the Customs Act 1901, applies to individuals or entities seeking tariff concessions on specific goods imported into Australia. This instrument particularly relates to the application for tariff concession orders (TCOs) by Richard Karl Hill for certain cheese portion fillers, aiming to benefit importers by reducing the customs duty rate from 5% to 0%. The instrument is governed by the core criteria set out in the Customs Act 1901, which mandates that the goods in question must not have substitutable equivalents produced in Australia and must be intended for use in Australia. The application of this legislation is jurisdictional under the Commonwealth, and it extends to any person or entity involved in the importation of the specified goods. There are no exclusions or exemptions specified in this particular instrument, and its scope is limited to the goods identified in the application. The instrument is effective from the date of the application, 29 August 2006, and does not retroactively impose any liabilities on individuals or entities.
Key Provisions
The main operative sections of this legislation are sections 269C, 269P(3), 269K(1), and 269S(1) of the Customs Act 1901. Section 269C establishes the core criteria for a Tariff Concession Order (TCO) application, which must be met for a TCO to be considered. Section 269P(3) mandates that if the Chief Executive Officer (CEO) of Customs is satisfied that an application meets these criteria, they must make a TCO. Section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not proceed, although no submissions were received in this case. Section 269S(1) specifies that a TCO is considered to have come into effect on the day the application was lodged.
The Act imposes several obligations and requirements on the parties involved. The CEO of Customs must evaluate each TCO application to ensure it meets the core criteria specified in section 269C. This includes verifying that no substitutable goods are produced in Australia in the ordinary course of business. Once the CEO is satisfied with an application, they must issue a TCO as per section 269P(3). Additionally, the CEO is obligated to publish a notice in the Gazette under section 269K(1), inviting any interested parties to submit their views on the proposed TCO. While this TCO did not attract any submissions, the requirement remains a statutory necessity.
Failure to comply with the requirements set out in the Customs Act 1901 could lead to civil or criminal consequences. Although the explanatory statement does not detail specific penalties, the general provisions of the Customs Act 1901 might apply, including fines and imprisonment for serious breaches. The exact penalties would depend on the nature and severity of the violation, but the potential for significant financial and legal repercussions exists for non-compliance.
This legislation ensures that the rights of the Commonwealth and other entities are protected, while also providing clear benefits to importers of the specified goods. The TCO reduces the customs duty rate from 5% to 0%, which should facilitate easier and more cost-effective importation of these goods into Australia. Importantly, the TCO does not impose any liabilities on any person for actions taken before its registration, safeguarding against retrospective disadvantage or liability.