EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0704129
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.
National Ceramic Industries Australia Pty Limited applied for a TCO in respect of certain ceramic tiles presses and dryers on 20 March 2007.
Instrument
TCO No 0704129 was made on 15 June 2007. It declares that those certain ceramic tiles presses and dryers 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. 0704129 is taken to have come into force on 20 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 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. 0704129, enacted in 2007 under the Customs Act 1901, addresses the need to provide tariff concessions for specific imported goods, ensuring that Australian businesses can remain competitive by reducing the duty on necessary imports. The instrument was developed and enacted by the Australian Government, aiming to facilitate smoother trade practices and economic efficiency by providing a lower customs duty rate for specified goods. In this particular instance, the instrument was applied to certain ceramic tiles presses and dryers, which were granted a tariff concession to boost the ceramics industry in Australia. The policy objective is to support domestic industries by ensuring that they do not face undue competition from locally produced substitutes, thereby promoting fair trade practices and economic growth.
Scope and Application
The Tariff Concession Instrument No. 0704129 under the Customs Act 1901 applies specifically to the goods identified in the instrument, namely certain ceramic tiles presses and dryers, which are declared to be subject to a reduced rate of customs duty as specified in the order. This instrument pertains to entities involved in the import and production of these goods within Australia. The instrument was enacted to provide tariff concessions for goods that are not substitutable by locally produced alternatives, thereby promoting the importation of these specific items without incurring the usual customs duty. The instrument’s jurisdiction is national, as it is governed under the Commonwealth’s legislative authority. Importantly, the application of this concession does not extend to goods specified in section 269SJ of the Act, which includes items such as firearms, tobacco products, and certain types of alcohol, that are ineligible for tariff concessions. The instrument further stipulates that it does not affect the rights of any person other than the Commonwealth, ensuring that no one is disadvantaged or imposed with new liabilities as a result of its enactment. The instrument also clarifies that it does not impose any liabilities on any person, and it comes into effect on the date the application was lodged, 20 March 2007.
Key Provisions
The primary sections of the Customs Act 1901 relevant to Tariff Concession Orders (TCOs) are sections 269F, 269C, 269B, and 269P. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a TCO in respect of goods. If the application is not in respect of goods specified in section 269SJ, which includes goods that cannot be subject to a TCO, the CEO must determine whether the application meets the core criteria under section 269C. This involves ensuring that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged, as defined by section 269B. If the application meets these criteria, the CEO must make a written order declaring that the goods are subject to a prescribed rate of duty, as outlined in section 269P(3).
The Act imposes specific obligations on the CEO when handling a TCO application. The CEO must promptly publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made, as required by subsection 269K(1). The CEO is also obligated to ensure that the application meets the core criteria and to make the written order if the criteria are satisfied. Furthermore, the Act requires that a TCO does not affect the rights of any person as at the date of registration, except to the benefit of the importers who can apply for a refund of duty on goods imported since the TCO came into force.
In terms of penalties and consequences, the Customs Act 1901 does not specify particular offences or penalties for breaches of TCO regulations within the provided sections. However, any general provisions within the Act or related legislation may apply to breaches of customs duties or regulations. For example, section 287 of the Act generally penalises offences related to customs and excise with fines and imprisonment, but these are not explicitly tied to the TCO process in the provided text. The focus is on ensuring that the TCO process is transparent and that the rights of importers are protected.