EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0618517
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.
Amcor Fibre Packaging Australia applied for a TCO in respect of certain corrugator parts on 14 November 2006.
Instrument
TCO No 0618517 was made on 02 February 2007. It declares that those certain corrugator parts 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 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. 0618517 is taken to have come into force on 14 November 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. 0618517, enacted under the Customs Act 1901, was introduced to address the issue of tariff concessions for specific goods. The instrument was formulated in response to an application by Amcor Fibre Packaging Australia for tariff concessions on certain corrugator parts. The Customs Act 1901, enacted by the Commonwealth Parliament, provides the framework for granting such concessions to encourage trade and investment by reducing the customs duty on specified goods. The primary objective, as outlined in the explanatory statement, is to ensure that the application of tariff concessions does not disadvantage existing businesses and allows for a refund of duty for importers of the specified goods. This instrument aims to streamline the process of tariff concession applications and ensure that the rights of importers are protected while fostering a competitive business environment.
Scope and Application
The Tariff Concession Instrument No. 0618517 under the Customs Act 1901 applies specifically to certain corrugator parts, a type of goods subject to tariff concessions, and is directed towards Amcor Fibre Packaging Australia. This legislation facilitates a reduced customs duty rate for these goods, contingent upon the Chief Executive Officer of Customs determining that no substitutable goods are produced in Australia. The instrument is designed to provide tariff relief for specified goods, which in this case, are certain corrugator parts, by granting them duty-free status. The scope of this Act is limited to goods that meet the specified criteria of the Customs Act 1901, particularly under sections 269C, 269D, 269E, and 269SJ, which define the conditions for tariff concession eligibility. The Act operates within the Commonwealth jurisdiction and its application is contingent on the CEO’s assessment of the core criteria. There are no exclusions or exemptions specified in the explanatory statement for this particular TCO, and it does not impose any liabilities on persons other than the Commonwealth. The commencement of this Instrument is effective from the date the application was lodged, ensuring that any relevant rights or benefits are applicable retroactively from that date.
Key Provisions
The main sections of the Customs Act 1901 relevant to Tariff Concession Orders (TCOs) include sections 269C, 269F, 269P, and 269SJ. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods. The CEO must decide if the application meets the core criteria outlined in section 269C, which requires that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. If the application is approved, the CEO issues a written order under section 269P, declaring that the goods are subject to a lower rate of customs duty as specified in the Customs Tariff Act 1995.
Entities and parties governed by this legislation, such as importers and applicants for TCOs, must adhere to the outlined application process. They must ensure that their applications are valid and meet the core criteria, including providing sufficient evidence that no substitutable goods were produced in Australia. Importers, once a TCO is in effect, can apply for a refund of duty on goods imported since the date the TCO came into force under paragraph 126(1)(r) of the Regulations. The CEO must also publish a notice in the Gazette, inviting submissions from any interested parties regarding the application, as required by subsection 269K(1) of the Act.
Any failure to comply with the provisions of the Customs Act 1901 regarding the application and implementation of TCOs may result in civil or criminal consequences. Although specific penalties are not detailed in the text, breaches of customs regulations generally may lead to fines or imprisonment under the relevant sections of the Customs Act 1901. For instance, fraudulent applications or incorrect claims for duty refunds could potentially lead to prosecution under the Act's provisions for false statements or fraudulent behaviour.