EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0619971
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.
Bluescope Steel Limited applied for a TCO in respect of certain blast furnace refractory bricks and/or shapes on 18 December 2006.
Instrument
TCO No 0619971 was made on 09 March 2007. It declares that those certain blast furnace refractory bricks and/or shapes 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. 0619971 is taken to have come into force on 18 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 Australian Parliament, includes provisions for Tariff Concession Orders (TCOs) to provide tariff relief for certain goods. The Act was amended to allow the Chief Executive Officer of Customs to make these orders, which lower the customs duty on specified goods. Tariff Concession Instrument No. 0619971 was introduced to address the specific issue of granting tariff concessions for certain blast furnace refractory bricks and shapes, which are used in the production of steel. The instrument was enacted to provide tariff relief for these goods, ensuring that no substitutable goods were produced in Australia, thereby satisfying the core criteria outlined in the Act. The instrument was effective from the date the application was lodged, 18 December 2006, and no submissions were received in opposition to the concession. This instrument aims to benefit importers by potentially allowing them to apply for refunds of duty paid on these goods imported since the effective date.
Scope and Application
The Customs Act 1901, specifically through Part XVA, facilitates the implementation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, allowing for lower rates of customs duty on specified goods. The scope of this Act is limited to entities or individuals who apply for a TCO in relation to goods not specified in section 269SJ of the Act, which excludes certain types of goods from being eligible for tariff concessions. This Act applies to any person or entity that can demonstrate, on the day the application is lodged, that no substitutable goods are produced in Australia in the ordinary course of business. The jurisdiction of this Act extends nationally as it is a Commonwealth Act. The Act does not impose any liabilities on any person and does not affect the rights of any person as at the date of registration with respect to anything done or omitted to be done before the registration date. Furthermore, the Act allows for the extension of its application through subordinate instruments, which may specify additional criteria or processes for the issuance of TCOs.
Key Provisions
The Customs Act 1901 provides for the creation of Tariff Concession Orders (TCOs) through Part XVA, as seen in section 269F (2). This section outlines the process for applying for a TCO, which involves submitting an application to the Chief Executive Officer of Customs (CEO). The CEO then assesses whether the application meets the core criteria, as specified in sections 269C and 269P(3). A TCO application meets the core criteria if, at the time of application, no substitutable goods are produced in Australia in the ordinary course of business. This is further defined by sections 269D, 269E, and 269B. Once the CEO determines that the application meets these criteria, a TCO is issued, as per section 269P(3), effectively granting a lower rate of customs duty on the specified goods.
In the case of Tariff Concession Instrument No. 0619971, Bluescope Steel Limited applied for a TCO concerning certain blast furnace refractory bricks and/or shapes on 18 December 2006. The instrument was issued on 9 March 2007, declaring that the specified goods are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, resulting in a duty rate of free instead of the general rate of 5%. The CEO's decision to issue the TCO was based on the satisfaction that no substitutable goods were produced in Australia at the time of the application.
Under the Customs Act 1901, the CEO is mandated by section 269K(1) to publish a notice in the Gazette after accepting a TCO application as valid. This notice includes an invitation for any interested parties to submit objections or reasons why the TCO should not be issued. In this instance, the CEO did not receive any submissions opposing the TCO. The TCO, as specified in subsection 269S(1), is considered to have come into force on the date the application was lodged, which in this case was 18 December 2006. Importantly, the TCO does not affect the rights of any person other than the Commonwealth in a manner that would disadvantage them or impose liabilities for actions taken prior to the registration date.
The Act also addresses potential consequences of breaches. Although the specific provisions related to penalties for non-compliance or breaches of the TCO are not detailed in the Explanatory Statement, the overarching framework of the Customs Act 1901 provides for both civil and criminal penalties for breaches of customs regulations. These penalties can include fines and imprisonment, depending on the severity of the breach. The specifics of these penalties are typically outlined in the Customs Act itself and related regulations, which may impose significant fines and potential imprisonment for serious violations.