EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0701867
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.
Hydro Aluminium Kurri Kurri Pty Ltd applied for a TCO in respect of certain exhaust ramp assembly parts on 05 February 2007.
Instrument
TCO No 0701867 was made on 01 May 2007. It declares that those certain exhaust ramp assembly 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 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. 0701867 is taken to have come into force on 05 February 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 Tariff Concession Instrument No. 0701867, enacted in 2007 under the Customs Act 1901, was introduced to provide tariff concessions on specific goods to encourage their importation where there is no domestic production. This instrument was created to address the gap in the existing tariff structure that may have discouraged the import of certain goods if they could be produced domestically. The instrument was developed by the Chief Executive Officer of Customs in response to an application by Hydro Aluminium Kurri Kurri Pty Ltd for tariff concessions on certain exhaust ramp assembly parts. The instrument was published in the Gazette, inviting any interested party to submit objections, although none were received. The tariff concession order came into effect on the date the application was lodged, 5 February 2007, and benefits importers by allowing them to apply for a refund of duty on the goods imported since the effective date. Importantly, the order does not impose any liabilities on any person and does not affect the rights of any person as at the date of registration.
Scope and Application
The Tariff Concession Instrument No. 0701867 under the Customs Act 1901 applies to entities or individuals who seek tariff concessions for specific goods imported into Australia. This legislative instrument enables the Chief Executive Officer of Customs to grant concessions on customs duties for particular goods, provided they meet the criteria outlined in the Act. The application of the Act is national, applying across all states and territories of Australia as it is a Commonwealth Act. The Act specifically excludes goods listed in section 269SJ, which are not eligible for tariff concessions. The instrument is effective from the date of the application for the tariff concession order, in this case, 05 February 2007, and applies to the particular exhaust ramp assembly parts specified in the order. The scope of the Act can be further refined or extended through subordinate instruments, allowing for detailed regulations and conditions to be set out for specific types of goods or industries.
Key Provisions
The main operative sections of the Customs Act 1901, as applied by Tariff Concession Instrument No. 0701867, involve the application and issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). Specifically, section 269F allows for the application of a TCO for certain goods, while section 269C outlines the core criteria that the application must meet, such as the absence of substitutable goods produced in Australia at the time of application. If these criteria are met, the CEO is mandated by section 269P(3) to issue a written order, a TCO, that specifies the reduced customs duty applicable to the goods in question. In this instance, the TCO No. 0701867, made on 1 May 2007, specifies that certain exhaust ramp assembly parts are subject to a free rate of duty, down from the general rate of 5%.
The Customs Act 1901 imposes several obligations on the parties involved in the TCO process. Firstly, section 269K(1) requires the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application, inviting submissions from any interested parties who might oppose the concession. This was done for TCO No. 0701867, although no submissions were received. Additionally, section 269S(1) specifies that a TCO is effective from the date the application was lodged, which in this case was 5 February 2007. Importers of the affected goods are also granted certain rights, such as the ability to apply for a refund of duty paid on those goods since the effective date of the TCO, as per paragraph 126(1)(r) of the Regulations.
Failing to comply with the provisions of the Customs Act 1901 or the terms of a TCO can result in various consequences. Although specific offences, penalties, or civil/criminal consequences are not detailed in the provided text, it is clear that non-compliance could potentially lead to legal actions. The Act does not impose liabilities on any person for actions taken before the TCO's effective date, protecting individuals from retroactive penalties. However, any breach of the terms set by the TCO or the Act could lead to legal scrutiny, including possible financial penalties or other enforcement actions as deemed necessary by the relevant authorities.