EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0617790
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.
Inghams Enterprises Pty Ltd applied for a TCO in respect of certain poultry meat preparation line on 19 October 2006.
Instrument
TCO No 0617790 was made on 12 January 2007. It declares that those certain poultry meat preparation line 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. 0617790 is taken to have come into force on 19 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 enacted by the Parliament of Australia and establishes the legal framework for the administration of customs and excise in Australia. The Act provides for the imposition and collection of customs duty, excise, and other charges, and sets out the procedures for the importation and exportation of goods. The Customs Act 1901 was introduced to address the need for a comprehensive and streamlined system for the regulation of customs and excise in Australia. The Tariff Concession Instrument No. 0617790 was made under the Customs Act 1901 to provide tariff concessions for certain poultry meat preparation lines. The policy objective of this Instrument is to provide relief to businesses by reducing the customs duty on certain poultry meat preparation lines, thereby making them more affordable and competitive. The Chief Executive Officer of Customs was satisfied that no substitutable goods were produced in Australia, and therefore, a Tariff Concession Order was made, declaring that the certain poultry meat preparation lines are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies, with a rate of duty of 0%.
Scope and Application
The Tariff Concession Instrument No. 0617790 under the Customs Act 1901 applies specifically to the poultry meat preparation line for which Inghams Enterprises Pty Ltd lodged an application on 19 October 2006. This instrument is part of the broader scheme established under Part XVA of the Customs Act 1901, allowing the Chief Executive Officer of Customs to grant tariff concessions on certain goods if specific criteria are met. The instrument declares that the goods in question are subject to a zero percent duty rate, as the CEO determined that no substitutable goods were produced in Australia at the time the application was lodged, meeting the core criteria set out in the Act. The geographic and jurisdictional reach of this Act is Commonwealth-wide, applying nationally across Australia. The application and effects of the Tariff Concession Order are limited to the specific goods mentioned and do not extend to impose any liabilities on any person, nor do they affect the rights of any person as at the date of registration, thereby ensuring no disadvantage to parties other than the Commonwealth. Additionally, this legislation does not preclude the possibility of further orders being made under the same scheme for other goods or entities, as the Act provides a framework that can be extended through subordinate instruments.
Key Provisions
The Tariff Concession Instrument No. 0617790 under the Customs Act 1901 primarily establishes a tariff concession order (TCO) for certain poultry meat preparation lines. According to section 269F, an applicant can request a TCO for goods not specified in section 269SJ, provided that no substitutable goods are produced in Australia as of the application date. If the Chief Executive Officer of Customs (CEO) determines that the application meets the core criteria outlined in section 269C, they are required to issue a written order under section 269P(3). This instrument declares that the goods in question are subject to a prescribed item in Schedule 4 of the Customs Tariff Act 1995, with the specified duty rate.
The obligations imposed by this Act on the relevant parties are significant. The CEO must assess the TCO application to determine if it meets the core criteria, specifically focusing on whether substitutable goods are produced in Australia. If the criteria are met, the CEO must issue the TCO. Additionally, under section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from any interested parties. While no submissions were received in response to this TCO application, the process ensures transparency and allows for public input where relevant.
Failure to comply with the provisions of the Customs Act 1901 can result in various penalties. If an entity or individual breaches the terms of a TCO or engages in fraudulent activities related to the concession, they may face civil or criminal penalties. Although the explanatory statement does not detail specific penalties, breaches of customs legislation generally can lead to fines, imprisonment, or both, depending on the severity and intent of the violation. The exact penalties would be governed by other sections of the Customs Act 1901 and related regulations.