EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0703032
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.
Pacific Hoists Pty Ltd applied for a TCO in respect of certain magnetic lifters on 9 May 2007.
Instrument
TCO No 0703032 was made on 20 July 2007. It declares that those certain magnetic lifters 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. 0703032 is taken to have come into force on 9 May 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. 0703032, enacted in 2007, is an instrument made under the Customs Act 1901, aimed at providing tariff concessions for certain specified goods. The instrument was introduced to address the need for reducing the customs duty on particular imports, facilitating trade and potentially benefiting importers. The instrument was made by the Chief Executive Officer of Customs following an application by Pacific Hoists Pty Ltd for tariff concessions on certain magnetic lifters, effective from 9 May 2007. The core criteria for making such an order were met, as no substitutable goods were produced in Australia. The tariff rate was reduced from the general rate of 5% to 0%, providing a direct benefit to importers of these goods. The process of making this instrument involved publishing a notice in the Gazette inviting submissions, although none were received. The tariff concession is effective from the date the application was lodged, providing clarity and benefit to importers without imposing any new liabilities.
Scope and Application
The Customs Act 1901 provides a framework for the imposition of customs duties and includes provisions for Tariff Concession Orders (TCOs) under Part XVA. These orders can be applied for by any person and are granted by the Chief Executive Officer of Customs (CEO) if certain criteria are met, namely if the goods in question are not prohibited under section 269SJ and if no substitutable goods are produced in Australia. If the CEO determines that the application meets these criteria, they must issue a TCO, which applies a lower rate of customs duty to the specified goods. The application of TCOs is designed to benefit importers by potentially allowing them to claim refunds of duty paid on goods imported since the effective date of the TCO, without imposing any additional liabilities on persons other than the Commonwealth. The CEO is required to publish notices in the Gazette inviting submissions from any interested parties, although in this case, no submissions were received. TCOs are effective from the date the application is lodged and do not impact the rights of any person as at the date of registration concerning actions taken prior to the registration. The scope and application of this legislation are thus focused on facilitating tariff concessions for specific goods to benefit importers, while ensuring the process is transparent and open to public scrutiny.
Key Provisions
The Tariff Concession Instrument No. 0703032, made under section 269F of the Customs Act 1901 (the Act), applies a zero percent customs duty rate to certain magnetic lifters as of 9 May 2007, the date the application for the tariff concession order (TCO) was lodged (subsection 269S(1)). This order, which came into force on 20 July 2007, specifies that the magnetic lifters in question are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995 (the Tariff) (subsection 269P(3)). The general duty rate for these goods is five percent, but the TCO reduces this to zero percent.
The Act outlines obligations for both applicants and the Chief Executive Officer of Customs (the CEO). An applicant must submit an application for a TCO under section 269F, ensuring that the goods in question are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. The CEO must assess whether the application meets the core criteria specified in sections 269C and 269D of the Act. Specifically, the CEO must determine if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C). If the application satisfies these criteria, the CEO is required to make a written order declaring that the goods in question are subject to the specified tariff item (subsection 269P(3)).
The CEO must also publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid (subsection 269K(1)). This notice must invite any person who believes there are reasons why the TCO should not be made to lodge a submission with the CEO. In the case of TCO No. 0703032, no submissions were received in response to this invitation. 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 (subsection 269S(1)).
Under the Customs Act 1901, breaches of the provisions regarding TCOs may result in penalties. However, the specific offences, penalties, or civil/criminal consequences for breach are not detailed in the provided text. Typically, penalties for breaches of customs laws can include fines and imprisonment, with the severity of the penalty depending on the nature and extent of the breach. For precise details on penalties, one would need to consult the relevant sections of the Customs Act 1901 or associated regulations.