EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0619324
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.
Halifax Vogel Group Pty Ltd applied for a TCO in respect of certain polyvinyl chloride film on 5 December 2006.
Instrument
TCO No 0619324 was made on 2 March 2007. It declares that those certain polyvinyl chloride film 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. 0619324 is taken to have come into force on 5 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 Tariff Concession Order No. 0619324, enacted under the Customs Act 1901, addresses the need to provide tariff concessions for specific goods, thereby facilitating trade by reducing customs duty rates for those goods. This instrument was introduced to support importers by lowering the duty on certain polyvinyl chloride film, which was not being produced domestically. Enacted by the Chief Executive Officer of Customs, the order aims to align with the policy objective of the Customs Act 1901, which is to streamline trade processes and provide economic benefits by reducing tariff barriers where applicable. The order ensures that no substitutable goods were produced in Australia, thus meeting the core criteria for tariff concessions. The order came into effect on 5 December 2006, the date the application was lodged, and it does not disadvantage any person or impose liabilities for actions taken before its registration.
Scope and Application
The Customs Act 1901, specifically under Part XVA, establishes a framework through which Tariff Concession Orders (TCOs) can be implemented by the Chief Executive Officer of Customs. This Act applies to individuals and entities seeking tariff concessions on specific goods, ensuring that the goods in question are not specified in section 269SJ of the Act, which excludes certain goods from this concession scheme. A TCO application meets the core criteria if the goods in question are not produced in Australia in the ordinary course of business, as outlined in sections 269C, 269D, 269E and 269F of the Act. When these criteria are satisfied, the CEO is mandated to issue a TCO, as per section 269P(3), which declares that the goods in question will attract a prescribed rate of duty. The geographic reach of this legislation is national, as it pertains to the Customs Act 1901, which is a Commonwealth Act. The application of the TCO is further extended or restricted by subordinate instruments such as the Customs Tariff Act 1995. In the case of TCO No. 0619324, it was made applicable to certain polyvinyl chloride film, reducing the duty rate from 5% to 0%, effective from 5 December 2006, the date the application was lodged.
Key Provisions
The Customs Act 1901 (the Act) establishes a framework under which Tariff Concession Orders (TCOs) may be issued by the Chief Executive Officer of Customs (CEO) to lower the customs duty on specified goods. Section 269F (1) of the Act allows a person to apply to the CEO for a TCO in respect of goods. If the application is not for goods specified in section 269SJ of the Act, which are ineligible for a TCO, the CEO must assess whether the application meets the core criteria. Section 269C of the Act specifies that a TCO application meets these criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. The definitions of "goods produced in Australia," "ordinary course of business," and "substitutable goods" are provided in sections 269D, 269E, and 269F respectively. If the CEO determines that the application meets the core criteria, they must issue a written order (a TCO) declaring that the goods are subject to a prescribed item in Schedule 4 of the Customs Tariff Act 1995, as specified in the order.
The obligations under the Act require the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting submissions from any person who believes the TCO should not be issued. This was followed in the case of TCO No. 0619324, where the CEO did not receive any submissions in response to the published notice. The TCO is considered to have come into effect on the day the application was lodged, as per section 269S (1) of the Act. Importantly, the TCO does not affect the rights of any person, other than the Commonwealth, as at the date of registration, nor does it impose any liabilities on any person in respect of actions taken before the registration date. Importers of the affected goods can apply for a refund of duty under paragraph 126(1)(r) of the Regulations for goods imported since the TCO's effective date.
There are no specific offences, penalties, or consequences outlined in the Act or the explanatory statement for breach of the TCO provisions. However, failure to comply with the conditions set forth in a TCO could potentially lead to disputes or administrative actions, although these are not explicitly detailed in the provided text. The focus of the Act appears to be on the procedural aspects of issuing TCOs and ensuring that the process is transparent and inclusive of public submissions.