Overview

The Tariff Concession Instrument No. 0706915 was enacted under the Customs Act 1901 to address the need for tariff concessions for specific goods, thereby reducing the customs duty applied to those goods. This legislation was introduced to facilitate easier importation of certain goods by providing a lower rate of duty, which can stimulate trade and economic activity by making imported goods more affordable. The instrument was enacted by the Chief Executive Officer of Customs, in accordance with section 269F of the Customs Act, which allows for the application of tariff concession orders based on the core criteria outlined in the Act. The objective of this instrument is to ensure that the tariff concessions are granted only when there are no substitutable goods produced in Australia, thus preventing any negative impact on local industries. The Tariff Concession Instrument No. 0706915 specifically concerns Bluescope Steel Limited's application for certain sinter plant waste gas fan AC motors, for which a lower duty rate was approved, making the importation of these goods more economical. This particular measure was implemented to support the efficient operation of sinter plants by ensuring that the necessary equipment can be imported without incurring high customs duties, thereby aiding industrial processes and potentially lowering costs for businesses reliant on these imports. The instrument came into force on the date of application, 09 May 2007, and does not affect any pre-existing rights or impose new liabilities on any party except the Commonwealth.

Scope and Application

The Customs Act 1901, through Part XVA, establishes a framework under which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO). This Act applies to any person or entity that applies for a TCO in respect of goods, subject to the criteria outlined within the Act. The Act's jurisdiction covers the Commonwealth of Australia, and its application is limited to goods that are not specified in section 269SJ, which lists those goods that cannot be subject to a TCO. A TCO can be applied for under section 269F, and if the CEO determines that the application meets the core criteria, a lower rate of customs duty applies to the goods specified in the order. The CEO must ensure that no substitutable goods are produced in Australia on the day the application was lodged, as stipulated in section 269C. Additionally, section 269K(1) mandates the CEO to publish a notice in the Gazette inviting submissions from any interested parties, although in the case of TCO No. 0706915, no such submissions were received. The TCO, once issued, has retroactive effect from the date the application was lodged, as per subsection 269S(1), and it does not disadvantage any person or impose liabilities for actions prior to its issuance.

Key Provisions

The Customs Act 1901 establishes a framework through which the Chief Executive Officer of Customs can make Tariff Concession Orders (TCOs) to provide lower rates of customs duty on specific goods (s 269F). Section 269C stipulates that a TCO application will meet the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Under section 269D, 'goods produced in Australia' means goods that were made in Australia, and under section 269E, 'ordinary course of business' means a business activity that is not done on an occasional or experimental basis. Section 269P(3) mandates that if the CEO is satisfied that a TCO application meets the core criteria, a written order (a TCO) must be made declaring that the goods subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. The obligations imposed by the Customs Act 1901 on parties include the requirement that the CEO must decide whether a TCO application meets the core criteria, as outlined in section 269C. If the application is for goods that are not specified in section 269SJ and no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged, the CEO must make a TCO. Additionally, under section 269K(1), the CEO is required to publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application. This notice must include an invitation for any person who considers there are reasons why the TCO should not be made to lodge a submission with the CEO. In terms of breaches and penalties, the Customs Act 1901 does not specify particular offences or penalties for failing to comply with the provisions relating to TCOs. However, the Act provides that a 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 (s 269S(2)). Importers of goods subject to a TCO may apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force (Reg 126(1)(r)). Failure to adhere to the procedural requirements, such as not publishing a notice in the Gazette when required, may result in legal consequences under the broader framework of the Customs Act 1901.