EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0708754
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.
Department of Infrastructure, Queensland applied for a TCO in respect of a certain wastewater treatment plant on 07 June 2007.
Instrument
TCO No 0708754 was made on 24 August 2007. It declares that those certain wastewater treatment plants 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. 0708754 is taken to have come into force on 07 June 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. 0708754, enacted in 2007, is a legislative measure under the Customs Act 1901, aimed at facilitating the importation of specific goods by providing tariff concessions. This instrument was introduced to address the issue of ensuring that essential goods, which are not produced domestically, can be imported without incurring prohibitive customs duties, thereby supporting economic activities and potentially aiding in the provision of services or products that are crucial for public or industrial use. The instrument was created by the Chief Executive Officer of Customs following an application from the Department of Infrastructure, Queensland, for a wastewater treatment plant. This process underscores the objective of the Customs Act to streamline the importation of necessary goods by reducing or eliminating customs duties where appropriate. The instrument came into effect on the date the application was lodged, ensuring that any duties paid before its registration are eligible for a refund, while also protecting the rights of parties involved.
Scope and Application
The Tariff Concession Instrument No. 0708754, issued under the Customs Act 1901, applies to specific wastewater treatment plants and is designed to provide tariff concessions on these goods. This legislation is applicable to the entities and individuals involved in the import of these particular wastewater treatment plants, aiming to reduce the customs duty on such goods. The instrument was made by the Chief Executive Officer of Customs (CEO) after the Department of Infrastructure, Queensland, applied for the tariff concession on 7 June 2007. The CEO determined that a tariff concession order (TCO) was appropriate since no substitutable goods were produced in Australia, thus meeting the core criteria under section 269C of the Act. The geographic reach of this Act is national, as it pertains to customs duties across Australia. The TCO does not affect any existing rights or impose liabilities on individuals or entities other than the Commonwealth, and it does not disadvantage anyone in respect of actions taken before the registration date. Importers of these wastewater treatment plants can benefit from this concession by applying for a refund of duty on goods imported from the effective date of the TCO, which is taken to be 7 June 2007.
Key Provisions
The Tariff Concession Order (TCO) No. 0708754, made under section 269F of the Customs Act 1901, sets out the specific concessions for a certain wastewater treatment plant (section 269P(3)). This order was issued on 24 August 2007 and came into effect on the date the application was lodged, 7 June 2007 (subsection 269S(1)). The key provision of the TCO is that it declares these wastewater treatment plants as goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, thereby reducing the duty rate from the general rate of 5% to free (section 269P(3)). This is contingent upon the Chief Executive Officer (CEO) of Customs being satisfied that no substitutable goods were produced in Australia at the time the application was lodged (section 269C).
The obligations imposed by this Act primarily rest on the CEO of Customs, who must consider applications for TCOs under section 269F and determine whether they meet the core criteria outlined in section 269C. This involves assessing whether there were any substitutable goods produced in Australia in the ordinary course of business at the time the application was lodged. If the CEO determines that the application meets the criteria, they must issue a written TCO (section 269P(3)). The CEO is also required to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting any interested parties to lodge submissions if they believe the TCO should not be made (subsection 269K(1)). In this case, no submissions were received.
Failure to comply with the requirements of the Customs Act 1901 or the specific provisions of a TCO can result in civil or criminal penalties. While the explanatory statement does not explicitly state the penalties for breach, the Act generally provides for fines and imprisonment for offences related to customs duties and the importation of goods. The maximum penalties can vary depending on the specific offence, but they can include substantial fines and imprisonment terms. It is important to note that these penalties apply to those who fail to comply with the requirements of the Act or the terms of a TCO, such as by importing goods without proper documentation or attempting to evade duty. The CEO of Customs plays a critical role in enforcing these provisions and ensuring compliance.