EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0620095
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.
Major Projects Victoria applied for a TCO in respect of certain synchrotron beamline refrigerated water recirculators on 28 December 2006.
Instrument
TCO No 0620095 was made on 16 March 2007. It declares that those certain synchrotron beamline refrigerated water recirculators 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. 0620095 is taken to have come into force on 28 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 Instrument No. 0620095, enacted in 2007, is an instrument under the Customs Act 1901. It was introduced to address the need for tariff concessions for specific goods, allowing for a lower rate of customs duty. This instrument was enacted by the Commonwealth Parliament and aims to facilitate the importation of goods by reducing their customs duty rates when certain conditions are met, thereby supporting the efficient operation of major projects within Australia. The instrument was made following an application by Major Projects Victoria for tariff concessions on certain synchrotron beamline refrigerated water recirculators, which were determined to be non-substitutable goods not produced in Australia at the time of application. This instrument ensures that the rights of importers are positively impacted while not imposing any new liabilities on individuals or entities.
Scope and Application
The Customs Act 1901, specifically under Part XVA, establishes a framework for the Chief Executive Officer (CEO) of Customs to issue Tariff Concession Orders (TCOs) which provide lower rates of customs duty on certain goods. This process is initiated when a person applies to the CEO for a TCO for goods that are not specified in section 269SJ of the Act, which lists goods ineligible for tariff concessions. An application is deemed to meet the core criteria if no substitutable goods are produced in Australia in the ordinary course of business, as per sections 269C and 269S of the Act. Once the CEO is satisfied with the application, they must issue a written order, or TCO, specifying that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. This instrument applies to specific entities or persons who apply for and meet the criteria for a TCO, such as Major Projects Victoria in the case of synchrotron beamline refrigerated water recirculators. The geographic reach of this Act is national, as it pertains to the Commonwealth of Australia, and the instrument extends its application through subordinate instruments, ensuring compliance and enforcement across the country.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0620095 (section 269C and 269P) require the Chief Executive Officer of Customs (CEO) to assess the application for a Tariff Concession Order (TCO) against certain criteria. Specifically, section 269C stipulates that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269P(3) mandates that if the CEO is satisfied that the application meets these criteria, a written TCO must be issued. This instrument was made on 16 March 2007, declaring that certain synchrotron beamline refrigerated water recirculators are subject to a lower rate of customs duty, in this case, free of charge, as no substitutable goods were produced in Australia.
The obligations imposed by the Act on parties or entities it governs include the requirement for applicants to ensure that their applications meet the core criteria, particularly the condition that no substitutable goods were produced in Australia. The CEO has the duty to assess these applications and, if satisfied, to issue a TCO. Additionally, the CEO must publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made, although no submissions were received in response to this particular notice. Importers of the affected goods are also granted the right to apply for a refund of duty on goods imported since the TCO was taken to have come into force, as per paragraph 126(1)(r) of the Regulations.
Any breach of the provisions within the Customs Act 1901 could lead to civil or criminal consequences. For instance, providing false information in an application for a TCO could be considered an offence, potentially leading to penalties. While the specific penalties are not detailed in the explanatory statement, under Australian law, penalties for customs-related offences can include substantial fines and, in serious cases, imprisonment. The precise penalties would depend on the nature and severity of the breach, as determined by the relevant authorities.