EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0617439
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.
Global Track Warehouse Pty Ltd applied for a TCO in respect of certain rubber track pads on 20 September 2006.
Instrument
TCO No 0617439 was made on 08 December 2006. It declares that those certain rubber track pads 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 10%. 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. 0617439 is taken to have come into force on 20 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 Customs Act 1901, enacted by the Australian Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs. This legislation was introduced to address the issue of providing tariff relief on certain goods that are not produced domestically and for which there are no suitable substitutes. This Act aims to promote fair trade practices and economic efficiency by reducing the cost of importing goods that are essential but not manufactured locally. The Tariff Concession Instrument No. 0617439, issued under this Act, provides a lower rate of customs duty on specific rubber track pads, effective from the date of application, 20 September 2006, thereby benefiting importers without imposing any new liabilities on them.
Scope and Application
The Tariff Concession Instrument No. 0617439 under the Customs Act 1901 applies to specific goods, in this case, certain rubber track pads, and is designed to provide relief from customs duties for those goods. This instrument was issued by the Chief Executive Officer of Customs in response to an application from Global Track Warehouse Pty Ltd. The application was made on 20 September 2006, and the instrument was published on 08 December 2006. The application of this Tariff Concession Order is limited to the rubber track pads specified, and it does not extend to any other goods unless similarly applied for and approved. The instrument operates under the authority granted by section 269F of the Customs Act, which allows for the CEO to make such orders if the core criteria are met, including the absence of substitutable goods produced in Australia. The order came into force on the date the application was lodged, 20 September 2006, and it reduces the customs duty rate from the general 10% to free, providing a benefit to importers of these goods by potentially allowing them to claim refunds for duties paid prior to the instrument's effective date.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 0617439 under the Customs Act 1901 (section 269P) establish the framework for granting tariff concessions on certain goods. Specifically, section 269P(3) mandates that the Chief Executive Officer of Customs (CEO) must make a written order (Tariff Concession Order or TCO) if satisfied that a TCO application meets the core criteria outlined in section 269C. This order declares that the goods in question are subject to a specific item in Schedule 4 of the Customs Tariff Act 1995, which in this case, relates to rubber track pads and their duty-free status.
The Act imposes certain obligations on the parties involved. For instance, any person seeking a TCO must apply to the CEO, ensuring that the goods in question are not those specified in section 269SJ, which are ineligible for tariff concessions (section 269F). The CEO, upon accepting the application, must publish a notice in the Gazette inviting any interested parties to lodge submissions opposing the TCO (subsection 269K(1)). Additionally, the CEO must determine if the application meets the core criteria, specifically whether substitutable goods were produced in Australia at the time of application (section 269C). If these conditions are met, the CEO must proceed to make the TCO.
Breaching the provisions of the Customs Act 1901 related to TCOs can lead to civil or criminal consequences. Although the explanatory statement does not detail specific offences or penalties, general provisions in the Act suggest that failing to comply with the requirements for making or applying for a TCO could result in penalties. Such penalties may include fines or imprisonment, depending on the severity of the breach. For instance, section 256 of the Customs Act 1901 outlines various penalties for contraventions, which could include substantial fines and imprisonment terms for serious offences. Therefore, adherence to the Act's requirements is crucial to avoid these potential consequences.