EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0618422
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 0618422 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. 0618422 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 Tariff Concession Instrument No. 0618422, made under the Customs Act 1901, was enacted in 2007 to address the need for tariff concessions on specific imported goods. The Customs Act 1901 established a scheme where the Chief Executive Officer of Customs can make Tariff Concession Orders (TCOs) to apply a lower rate of customs duty to certain goods. This instrument specifically addresses the application by Inghams Enterprises Pty Ltd for a TCO on certain poultry meat preparation lines, reducing the duty rate from 5% to 0%. This concession was granted after it was determined that no substitutable goods were produced in Australia, fulfilling the core criteria outlined in the Act. The TCO aims to benefit importers by potentially allowing them to apply for a refund of duty on goods imported since the TCO's effective date, without imposing any new liabilities on any party.
Scope and Application
The Tariff Concession Instrument No. 0618422, made under Part XVA of the Customs Act 1901, applies specifically to the goods identified in the application made by Inghams Enterprises Pty Ltd concerning a poultry meat preparation line. This instrument extends to those entities engaged in the importation of such goods and is applicable on a national scale as it pertains to the application of the Customs Act 1901 across Australia. The instrument exempts these particular goods from the general rate of customs duty, reducing it from 5% to 0%, provided the application meets the core criteria outlined in the Act. This includes ensuring that no substitutable goods are produced in Australia in the ordinary course of business as of the date the application was lodged. The instrument does not disadvantage any person other than the Commonwealth and does not impose any new liabilities, thereby protecting the rights of importers who can now seek refunds for duties paid on these goods imported since the effective date of the Tariff Concession Order. Any broader application or modification of the instrument can be achieved through subordinate instruments, thereby extending or restricting its scope as needed.
Key Provisions
The Tariff Concession Instrument No. 0618422, under the Customs Act 1901, specifically addresses the application of tariff concessions on certain goods, in this case, a poultry meat preparation line. Section 269F allows an application to be made to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO), which can result in a lower rate of customs duty for the specified goods (section 269P(3)). In this instance, the CEO was satisfied that no substitutable goods were produced in Australia, and thus, a TCO was issued, applying a zero percent duty rate to the specified goods (section 269C).
The Act imposes several obligations on the parties involved. The CEO is required to ensure that the goods in question are not specified in section 269SJ, which lists goods that cannot be subject to a TCO (section 269F). Furthermore, the CEO must determine whether the application meets the core criteria outlined in section 269C, which includes verifying that no substitutable goods were produced in Australia in the ordinary course of business. Once these criteria are met, the CEO must make a written order declaring that the goods are subject to the prescribed tariff specified in the order (section 269P(3)).
Non-compliance with the provisions of the Act could lead to legal consequences. While the explanatory statement does not specify any particular offences, the Act itself contains provisions for various penalties and consequences for breaches. For instance, section 270 of the Customs Act 1901 addresses the penalties for false statements or misleading information provided to the CEO, which could result in fines or imprisonment. Additionally, section 272 imposes penalties for the wrongful importation of goods, which could include fines and the confiscation of goods.
In this particular case, the TCO No. 0618422 was issued on 12 January 2007 and is considered to have come into force on 19 October 2006, the date the application was lodged (subsection 269S(1)). The rights of importers are beneficially affected by this TCO, as they can apply for a refund of duty on goods imported since the TCO's effective date (paragraph 126(1)(r) of the Regulations). Importantly, the TCO does not affect the rights of any person other than the Commonwealth or impose any liabilities on any person for actions taken before the TCO's registration.