EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0619312
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.
Norske Skog (Australasia) Pty Ltd applied for a TCO in respect of a certain effluent treatment plant on 04 December 2006.
Instrument
TCO No 0619312 was made on 02 March 2007. It declares that those certain effluent treatment plants 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. 0619312 is taken to have come into force on 04 December 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, was supplemented by Tariff Concession Instrument No. 0619312 in 2007. This instrument addresses the gap in tariff concession applications for specific goods by providing a mechanism through which businesses can apply for a reduction or exemption from customs duty on imported goods if no substitutable goods are produced in Australia. The objective is to support businesses by reducing the cost of imported goods necessary for their operations, thereby enhancing their competitiveness. The instrument was introduced following an application by Norske Skog (Australasia) Pty Ltd for a tariff concession on a certain effluent treatment plant, which was subsequently granted after the CEO of Customs confirmed that no substitutable goods were produced in Australia. The instrument came into effect on the date the application was lodged, providing immediate benefits to importers of the specified goods.
Scope and Application
The Tariff Concession Instrument No. 0619312 under the Customs Act 1901 applies specifically to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. This instrument pertains to entities or individuals seeking to import certain effluent treatment plants, as exemplified by the application by Norske Skog (Australasia) Pty Ltd. The application for a TCO must meet the core criteria outlined in the Act, which include ensuring that no substitutable goods are produced in Australia in the ordinary course of business at the time of application. The instrument's jurisdictional reach is national, as it operates under the authority of the Commonwealth of Australia. The TCO provides a tariff concession, reducing the customs duty on the specified goods from the general rate of 5% to free, effective from the date the application was lodged. The application of this concession is restricted to the specific goods mentioned and does not extend to any other goods or entities not specified in the TCO. Furthermore, the rights of the Commonwealth and other persons are preserved, with no disadvantage or new liabilities imposed by the TCO, except for the beneficial impact on importers who can apply for duty refunds.
Key Provisions
The Tariff Concession Instrument No. 0619312 (TCO No 0619312), made under section 269F of the Customs Act 1901 (the Act), sets out a specific tariff concession for certain effluent treatment plants. This instrument was made by the Chief Executive Officer of Customs (the CEO) following an application by Norske Skog (Australasia) Pty Ltd on 04 December 2006. The TCO declares that these particular effluent treatment plants are subject to the tariff concessions specified in item 50 of Schedule 4 to the Customs Tariff Act 1995 (the Tariff), thereby applying a duty rate of free, as opposed to the general rate of 5%.
Entities and individuals governed by this Act are required to understand and comply with the provisions set out in the TCO. Specifically, section 269C of the Act mandates that a Tariff Concession Order can only be made if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. For the purposes of this TCO, substitutable goods are defined as those produced in Australia that can be used in a manner similar to the effluent treatment plants in question. Additionally, section 269K(1) requires the CEO to publish a notice in the Gazette, inviting any interested parties to submit objections to the TCO. In this case, the CEO received no submissions.
The obligations imposed by this TCO primarily pertain to the application process and the determination of eligibility. The CEO must assess the application against the criteria outlined in section 269C, ensuring that no substitutable goods were produced in Australia. Once satisfied, the CEO must make a written order declaring the specific goods to which the tariff concession applies. The TCO ensures that the rights of importers are protected and beneficially affected, as they can apply for a refund of duty on goods imported since the TCO came into force under paragraph 126(1)(r) of the Regulations.
Should any party fail to comply with the requirements set out in this TCO, they may face civil or criminal consequences. However, the explanatory statement does not specify any particular offences, penalties, or consequences for breach of this TCO. Typically, breaches of customs regulations can result in fines, penalties, and potential legal action, but the specific penalties would depend on the nature and severity of the breach.