EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0700807
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.
W W Wedderburn Pty Ltd applied for a TCO in respect of certain weighing scale parts on 15 January 2007.
Instrument
TCO No 0700807 was made on 10 April 2007. It declares that those certain weighing scale parts 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. 0700807 is taken to have come into force on 15 January 2007.
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, establishes a framework for the regulation of imports and exports through the imposition of customs duty. To address the economic needs and trade policies of the nation, the Act allows for the creation of Tariff Concession Orders (TCOs) which provide relief from customs duty for certain goods. Specifically, the Act facilitates the application process for TCOs, enabling businesses to seek reductions in duty rates on specific imported goods under certain conditions, thereby supporting trade and economic development. This legislative measure ensures that Australia can adapt its trade policies to meet the evolving demands of the global market and domestic industries.
The explanatory statement for Tariff Concession Instrument No. 0700807 elucidates the process by which the Chief Executive Officer of Customs evaluates and approves applications for tariff concessions. The instrument, enacted on 10 April 2007, recognises the absence of substitutable goods produced in Australia for certain weighing scale parts, thereby qualifying them for a zero percent duty rate under item 50 of Schedule 4 to the Customs Tariff Act 1995. The policy objective of this instrument is to support the import of these specific goods by reducing the duty burden, thus encouraging trade and benefiting relevant businesses by lowering their costs.
Scope and Application
The Tariff Concession Instrument No. 0700807, made under the Customs Act 1901, applies to the specific category of weighing scale parts for which W W Wedderburn Pty Ltd made an application. The Act allows for the reduction of customs duty on certain goods if no substitutable goods are produced in Australia in the ordinary course of business. This particular instrument affects the importation of the specified weighing scale parts by reducing their customs duty rate from the general rate of 5% to 0%. The application of this concession is limited to those goods that meet the criteria outlined in section 269C of the Act, ensuring that the concession is granted only in the absence of domestic production of equivalent goods. The geographic reach of this legislation is national, as it pertains to customs duties levied at the federal level across Australia. The Act does not specify any exclusions or exemptions for this particular concession, and the thresholds for eligibility are defined within the Act itself, specifically in sections 269D, 269E, and 269F. The operation and scope of the concession can be further defined or extended through subordinate instruments, although no such extensions or restrictions are mentioned in this specific instance.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 0700807 are sections 269C, 269P, and 269SJ of the Customs Act 1901. Section 269C defines the core criteria that a Tariff Concession Order (TCO) application must meet, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P(3) mandates that if these criteria are satisfied, the Chief Executive Officer of Customs (CEO) must issue a TCO. Section 269SJ specifies the types of goods that are ineligible for a TCO.
The Act imposes several obligations on the parties involved. Firstly, any person seeking a TCO must apply to the CEO in accordance with section 269F. The CEO must then assess the application against the core criteria outlined in section 269C and decide whether to grant the TCO. If a TCO is granted, the CEO must publish a notice in the Gazette inviting any interested parties to lodge submissions opposing the TCO, as required by subsection 269K(1). In this case, no submissions were received. Additionally, once a TCO is issued, importers of the affected goods can apply for a refund of duty paid on imports since the TCO's effective date, under paragraph 126(1)(r) of the Regulations.
Failure to comply with the requirements of the Customs Act 1901 may result in various consequences. While the explanatory statement does not detail specific offences, breaches of the Act could potentially lead to civil or criminal penalties. Under section 284 of the Act, any person who makes a false statement or provides misleading information in an application for a TCO may be subject to fines or imprisonment. The exact penalties are not specified in the explanatory statement, but they can be found in the relevant sections of the Customs Act 1901. Additionally, any person adversely affected by the TCO may have the right to challenge the decision in an appropriate court or tribunal.