EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0708875
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.
Bluescope Steel Limited applied for a TCO in respect of certain tundish sprayer parts on 12 June 2007.
Instrument
TCO No 0708875 was made on 31 August 2007. It declares that those certain tundish sprayer parts 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 10%. 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. 0708875 is taken to have come into force on 12 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 Customs Act 1901 was enacted to provide for the collection of customs duty and the regulation of customs and excise. It was introduced to address the need for a systematic approach to managing the importation of goods into Australia, including the collection of appropriate duties and the regulation of goods entering the country. The Act was enacted by the Parliament of Australia, with the intent to facilitate trade while ensuring revenue collection and the enforcement of regulatory standards. The Tariff Concession Instrument No. 0708875, made under the authority of the Customs Act 1901, aims to provide tariff concessions for specific goods by reducing or eliminating customs duty, thus supporting industry competitiveness and economic efficiency. This instrument was created following an application from Bluescope Steel Limited, which sought concessions for certain tundish sprayer parts, and was processed without any objections, leading to the reduction of duty on these goods from 10% to free.
Scope and Application
The Customs Act 1901, specifically through Part XVA, outlines the procedure for Tariff Concession Orders (TCOs) which can be applied for by any person seeking a lower rate of customs duty on certain goods. The Act applies to individuals or entities that import goods which may qualify for tariff concessions, provided they meet the core criteria stipulated in the Act, such as the absence of substitutable goods produced in Australia. The geographic reach of the Act is national, as it operates under the purview of the Commonwealth of Australia. The Act does not impose any liabilities on individuals or entities other than the Commonwealth and does not disadvantage anyone who had rights as of the date of registration. The application of the Act may be extended or further defined through subordinate instruments such as the Customs Tariff Act 1995, which specifies the rates of duty applicable to the goods in question. In the case of TCO No. 0708875, the concession applies to certain tundish sprayer parts, reducing the duty rate from 10% to free, and was effective from the date the application was lodged, 12 June 2007.
Key Provisions
The Tariff Concession Instrument No. 0708875, made under the Customs Act 1901, outlines the process and criteria for the application of Tariff Concession Orders (TCOs) (section 269F). An application for a TCO can be submitted by a person to the Chief Executive Officer of Customs (CEO) (section 269F). The CEO must assess the application to determine whether it meets the core criteria, which include the absence of substitutable goods produced in Australia (section 269C). If the CEO is satisfied that the application meets these criteria, they must issue a written order, the TCO, which specifies the applicable tariff concession (subsection 269P(3)). In this case, the TCO No. 0708875 applies to certain tundish sprayer parts, granting them a free rate of duty as opposed to the general 10% duty (item 50 of Schedule 4 to the Customs Tariff Act 1995).
The obligations imposed on the parties by this legislation primarily involve the process of applying for a TCO and the CEO's role in assessing and granting these concessions. The applicant must ensure their application is valid and meets the core criteria, particularly demonstrating that no substitutable goods are produced in Australia (section 269C). The CEO, on the other hand, is obligated to assess the application, make a decision based on the core criteria, and publish a notice in the Gazette inviting submissions from interested parties (subsection 269K(1)). The CEO must also ensure that any TCO does not disadvantage any person or impose liabilities on them in respect of actions taken before the TCO's registration (subsection 269S(1)).
Any failure to comply with the requirements set out in the Customs Act 1901 and the related regulations may result in civil or criminal consequences. However, the explanatory statement does not specify the exact nature of these penalties. For breaches of the Customs Act, penalties can include fines, imprisonment, or both, depending on the severity of the offence. The specific penalties are detailed in the relevant sections of the Customs Act and the Customs Regulations 1993. In this case, since no submissions were received in response to the CEO's Gazette notice, it is presumed that all procedural requirements were met without incident.