EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0618737
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.
Surgical Synergies Pty Ltd applied for a TCO in respect of certain grabbing, reaching and retrieving tools on 21 November 2006.
Instrument
TCO No 0618737 was made on 09 February 2007. It declares that those certain grabbing, reaching and retrieving tools 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. 0618737 is taken to have come into force on 21 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 Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the regulation of customs and excise through various legislative instruments, including Tariff Concession Orders (TCOs). These TCOs are designed to provide tariff concessions for certain goods, facilitating easier access and potentially reducing costs for businesses importing these goods. The Act, specifically Part XVA, outlines the process by which the Chief Executive Officer of Customs can grant such concessions if certain criteria are met, including the absence of substitutable goods produced in Australia. Instrument TCO No. 0618737, made on 9 February 2007, is an example of such a concession, applied to certain grabbing, reaching, and retrieving tools, reducing the duty rate from 5% to free. The objective is to ensure that Australian businesses have access to necessary goods at a reduced cost, thereby supporting economic activity and potentially improving competitiveness in the marketplace.
Scope and Application
The Tariff Concession Instrument No. 0618737, made under the Customs Act 1901, applies to specific goods that are the subject of a Tariff Concession Order (TCO). The Act allows the Chief Executive Officer of Customs to reduce the rate of customs duty on certain goods if certain conditions are met, such as the absence of substitutable goods produced in Australia. This Instrument, specifically, relates to certain grabbing, reaching, and retrieving tools, which now enjoy a duty-free rate as a result of the TCO. The TCO is applicable nationally and affects entities importing the specified goods, granting them tariff concessions. The instrument does not impose any liabilities on persons other than the Commonwealth and does not affect any pre-existing rights of such persons. The TCO came into effect on the day the application was lodged, which was 21 November 2006, and the concession applies retroactively to that date. The instrument extends the application of the Customs Act by detailing specific goods that benefit from tariff concessions, thus providing clearer guidance on the types of goods eligible for such concessions.
Key Provisions
The Tariff Concession Order (TCO) No. 0618737, established under the Customs Act 1901, pertains to the tariff concessions for specific goods, namely certain grabbing, reaching, and retrieving tools. The primary operative sections include section 269C (which defines the core criteria for a TCO application), section 269D (which outlines the meaning of goods produced in Australia), section 269E (which specifies the ordinary course of business), and section 269F (which sets the process for application). Pursuant to section 269P(3), if the Chief Executive Officer (CEO) of Customs is satisfied that the application meets the core criteria, a TCO is issued, granting a lower or free rate of customs duty on the specified goods.
Under the Customs Act 1901, parties such as Surgical Synergies Pty Ltd, who apply for a TCO, must ensure their application adheres to the criteria set out in section 269C. The CEO is required to assess whether the application is for goods not specified in section 269SJ, which lists items ineligible for TCOs. The CEO must also consider whether substitutable goods are produced in Australia. Additionally, the CEO is obligated to publish a notice in the Gazette under subsection 269K(1), inviting submissions from interested parties. Should no submissions be received, the CEO proceeds to make the TCO.
Breach of the requirements or conditions specified in the Customs Act 1901 may result in various consequences. While the explanatory statement does not explicitly detail offences or penalties, general provisions under the Customs Act could impose civil or criminal penalties for non-compliance. Typically, penalties for breaches of customs laws can include fines and imprisonment, with the severity depending on the nature and extent of the infringement. For instance, under section 224 of the Act, an individual found guilty of a contravention could face penalties such as fines up to $11,000 or imprisonment for up to two years, or both.
In summary, the TCO No. 0618737 sets forth a specific tariff concession for certain medical tools, governed by the Customs Act 1901. It mandates compliance with set criteria and publication requirements, while the failure to adhere to these provisions may result in significant legal repercussions.