EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0705020
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.
Visy Industries Australia Pty Ltd applied for a TCO in respect of certain paper making dewatering boxes and/or elements on 04 April 2007.
Instrument
TCO No 0705020 was made on 29 June 2007. It declares that those certain paper making dewatering boxes and/or elements 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. 0705020 is taken to have come into force on 04 April 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. 0705020, enacted in 2007, pertains to the Customs Act 1901 and aims to provide tariff concessions for specific goods by reducing or eliminating customs duty. This instrument was introduced to address the need for a streamlined process under which businesses could apply for and obtain tariff concessions on certain imported goods, provided they meet specified criteria. The Australian Government, through the Chief Executive Officer of Customs, is the enacting body, with a policy objective to facilitate trade by reducing the financial burden on businesses importing specific goods, thereby promoting economic efficiency and competitiveness. The instrument allows for tariff concessions on certain paper-making dewatering boxes and elements, which will benefit importers by potentially lowering their duty costs and improving their ability to compete in the market.
Scope and Application
The Tariff Concession Instrument No. 0705020 under the Customs Act 1901 applies specifically to the concessions granted on customs duties for certain paper making dewatering boxes and elements. This instrument was enacted to facilitate a tariff concession order (TCO) for these goods, which was applied for by Visy Industries Australia Pty Ltd on 04 April 2007. The scope of the Act encompasses any entity or individual who imports or plans to import these goods, thereby directly impacting the import duties on such items. The TCO applies at a national level across Australia, governed by the Commonwealth under the Customs Act 1901. The application of this TCO is contingent on the CEO of Customs determining that no substitutable goods are produced in Australia, thereby meeting the core criteria set forth in section 269C of the Act. The TCO does not affect any existing rights of persons as of the registration date and does not impose any new liabilities. It is noteworthy that this instrument extends its application through subordinate instruments such as the Customs Tariff Act 1995, which specifies the applicable duty rates.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0705020, as referenced in the Customs Act 1901, include section 269C, which sets out the criteria for determining if a Tariff Concession Order (TCO) application meets the core requirements, and section 269P(3), which mandates that a TCO must be issued if the application is found to meet these criteria. Specifically, the application must demonstrate that no substitutable goods were produced in Australia on the day the application was lodged, as per section 269C. This instrument declares that certain paper making dewatering boxes and/or elements are subject to a zero percent duty rate, effective from the date the application was lodged, 04 April 2007, as stipulated in section 269S(1) of the Act.
The Customs Act 1901 imposes several obligations on the parties involved. The CEO of Customs is required to ensure that the application meets the core criteria outlined in section 269C before issuing a TCO. This involves verifying that no substitutable goods were produced in Australia at the time of the application. Furthermore, under subsection 269K(1), the CEO must publish a notice in the Gazette, inviting submissions from any interested parties who might oppose the TCO. Additionally, importers of the goods subject to the TCO are entitled to apply for a refund of duty paid on goods imported since the effective date of the TCO, as per the Regulations under section 126(1)(r).
The Act also delineates the consequences for non-compliance with its provisions. While the explanatory statement does not explicitly state any offences, penalties, or specific consequences for breaching the terms of the TCO, it is implied that any misuse or improper application of the TCO could lead to legal action. The Customs Act 1901 generally includes provisions for penalties related to incorrect declarations, fraud, and other forms of non-compliance, which could potentially apply if the TCO is misused. However, the specific penalties for such breaches are not detailed in the explanatory statement provided. The general expectation is that any misuse would be subject to the broader penalties outlined within the Customs Act 1901 and associated regulations.