EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0617065
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.
Moffat Pty Ltd applied for a TCO in respect of certain dough moulders on 11 September 2006.
Instrument
TCO No 0617065 was made on 1 December 2006. It declares that those certain dough moulders 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. 0617065 is taken to have come into force on 11 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. 0617065 was enacted in 2006 under the Customs Act 1901, addressing a gap in the tariff concession scheme by providing relief for certain goods through reduced customs duty rates. This instrument was introduced by the Chief Executive Officer of Customs, who has the authority to make Tariff Concession Orders (TCOs) under section 269F of the Act. The primary objective of this instrument is to ensure that no substitutable goods are produced in Australia, thereby allowing for tariff concessions to be applied to specific imported goods. In this instance, the instrument was applied to certain dough moulders, reducing their customs duty from 5% to 0%. The instrument came into effect on the date the application was lodged, 11 September 2006, and does not affect any pre-existing rights or impose liabilities on anyone except the Commonwealth.
Scope and Application
The Customs Act 1901 provides a framework for the administration of customs duties and includes provisions for the granting of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). These orders apply to specific goods that meet certain criteria, such as being imported and not having a substitutable equivalent produced in Australia at the time of the application. The scope of the Act extends to any person who applies for a TCO in respect of goods, provided the application adheres to the stipulations under sections 269C and 269SJ. The Act applies nationally, with its provisions being enforced across all states and territories of Australia. The instrument in question, TCO No. 0617065, was made on 1 December 2006, concerning certain dough moulders and was effective from 11 September 2006, the date of the application. The instrument provides a zero percent duty rate for these goods, down from the general rate of 5 percent, as long as the core criteria are met and no substitutable goods are produced in Australia. The Act and its subordinate instruments provide a structured pathway for the application and assessment of TCOs, ensuring that the concessions granted do not disadvantage existing entities or impose new liabilities.
Key Provisions
The Tariff Concession Instrument No. 0617065 under the Customs Act 1901 is primarily concerned with the establishment of Tariff Concession Orders (TCOs) that provide a lower rate of customs duty on specified goods. Section 269C (1) of the Act stipulates that a TCO application meets the core criteria if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P(3) mandates that if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets these criteria, they must issue a written order declaring that the goods in question are subject to a prescribed tariff item from Schedule 4 of the Customs Tariff Act 1995. For example, in the case of certain dough moulders, the CEO determined that no substitutable goods were produced in Australia, resulting in the issuance of TCO No. 0617065, which applies a 0% duty rate to these goods, down from the general rate of 5%.
The obligations imposed by this Act on the parties or entities it governs include the requirement for applicants to submit a valid application for a TCO in accordance with section 269F. The CEO must then assess whether the application meets the core criteria as outlined in section 269C and decide whether to issue a TCO. Additionally, subsection 269K(1) necessitates that the CEO publish a notice in the Gazette inviting any interested parties to submit submissions if they believe the TCO should not be made. This ensures transparency and allows for public input before a decision is finalised. The TCO's effective date, as stated in subsection 269S(1), is the day the application was lodged, which is 11 September 2006 for TCO No. 0617065.
Any breach of the requirements set out in the Customs Act 1901 can lead to civil or criminal consequences. While the specific offences and penalties are not detailed in this excerpt, it is known that the Act provides for penalties for non-compliance, which can include fines and imprisonment. The severity of these penalties would depend on the nature and extent of the breach. Furthermore, the Act ensures that the rights of individuals, other than the Commonwealth, are not adversely affected by the implementation of a TCO, as stipulated in the explanatory statement. This means that any pre-existing rights or obligations of importers or other entities are preserved, and no new liabilities are imposed retroactively.