Overview

The Customs Act 1901, as amended, introduced a mechanism for the Chief Executive Officer of Customs (CEO) to make Tariff Concession Orders (TCOs), which provide for a lower rate of customs duty on specified goods. This was enacted to address the gap where certain imported goods might not have Australian-produced substitutes, thereby justifying tariff concessions to prevent domestic industry disadvantage. The policy objective of this legislative instrument is to ensure fair competition by allowing for reduced tariffs where necessary. The Tariff Concession Instrument No. 0703921, made under this Act, was introduced on 5 September 2007, in response to an application by Bluescope Steel (AIS) Pty Ltd for tariff concessions on certain dry film and/or solid film lubricants. The CEO determined that these goods were not produced in Australia, thus satisfying the core criteria for a TCO. This instrument provides a tariff-free rate for these specific lubricants, effective from the date the application was lodged, 13 March 2007, and does not impose any liabilities or disadvantage existing rights of parties other than the Commonwealth.

Scope and Application

The Tariff Concession Instrument No. 0703921 under the Customs Act 1901 applies specifically to certain dry film and/or solid film lubricants, and it is directed towards those entities or individuals involved in the importation of these goods into Australia. This legislative instrument provides a concessionary rate of customs duty for these goods, effectively reducing the tariff from the general rate of $0.05449 per kilogram to zero. The geographic reach of this Act extends across the Commonwealth of Australia, thereby impacting importers and relevant entities nationwide. However, it is pertinent to note that this concession does not apply to goods specified in section 269SJ of the Customs Act 1901, which explicitly lists goods that cannot be subject to such tariff concessions. The Act operates within the broader framework of the Customs Tariff Act 1995, with its application potentially extended or restricted through subordinate instruments. There were no submissions received in opposition to the Tariff Concession Order, indicating a lack of significant public or stakeholder objection to the measure.

Key Provisions

The primary sections of the Tariff Concession Instrument No. 0703921 (the Instrument) relate to the making of a Tariff Concession Order (TCO) under section 269F of the Customs Act 1901 (the Act). Section 269F allows a person to apply to the Chief Executive Officer of Customs (the CEO) for a TCO in respect of goods, provided the application is not in relation to goods specified in section 269SJ of the Act. If the CEO is satisfied that the application meets the core criteria outlined in section 269C, the CEO must make a written order (a TCO) that declares the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. This Instrument specifically relates to certain dry film and/or solid film lubricants, which are now subject to a duty rate of free, instead of the general rate of $0.05449/kg. Under the Act, the CEO has specific obligations when processing a TCO application. Firstly, the CEO must ensure that the application does not pertain to goods specified in section 269SJ of the Act, which are ineligible for a TCO. The CEO must then determine if the application meets the core criteria, which requires that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C). Definitions for terms such as "goods produced in Australia", "ordinary course of business" and "substitutable goods" are provided in sections 269D, 269E, and 269F of the Act, respectively. Once the CEO is satisfied that the application meets the core criteria, they must make a written order (the TCO) declaring the goods to which a prescribed item of Schedule 4 to the Tariff applies. In this case, the CEO determined that no substitutable goods were produced in Australia and subsequently issued TCO No. 0703921. The Instrument also imposes obligations on the CEO, including publishing a notice in the Gazette inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO (subsection 269K(1) of the Act). In this instance, the CEO did not receive any submissions in response to the notice. Additionally, the TCO is taken to have come into force on the day on which the application for the TCO was lodged (subsection 269S(1) of the Act). TCO No. 0703921 is taken to have come into force on 13 March 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 Instrument does not explicitly outline any offences, penalties, or consequences for breach. However, the Act and associated Regulations may contain provisions that address such matters. For instance, section 126(1)(r) of the Regulations allows importers of goods subject to the TCO to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. It is essential to refer to the relevant sections of the Act and Regulations for a comprehensive understanding of potential consequences for non-compliance.