Overview

The Tariff Concession Instrument No. 0708945 was enacted under the Customs Act 1901 to provide relief to importers by reducing the customs duty on certain tableware imported by Ikea Pty Ltd. This instrument, issued by the Chief Executive Officer of Customs, addresses the gap in duty relief for goods that are not produced domestically and have no substitutable Australian-made alternatives. The CEO was satisfied that no such domestic alternatives existed for the specified tableware, fulfilling the core criteria under section 269C of the Act. This tariff concession reduces the duty on these goods from 5% to 0%, effective from 13 June 2007, the date of the application. The policy objective is to support the importation of these goods by easing financial burdens on importers, thereby potentially lowering the retail prices for consumers. The instrument was published in the Gazette, inviting submissions, but none were received, leading to its enactment on the date of application.

Scope and Application

The Tariff Concession Instrument No. 0708945 under the Customs Act 1901 applies to the goods specified in the instrument, in this case, certain tableware, and to Ikea Pty Ltd as the applicant of the Tariff Concession Order (TCO). The Act allows for a lower rate of customs duty on goods that are the subject of a TCO, provided the application meets the core criteria set out in the Act, such as the absence of substitutable goods produced in Australia. This mechanism benefits importers by potentially reducing their customs duty liabilities for the specified goods. The instrument's application is national in scope, administered by the Chief Executive Officer of Customs, and does not affect the rights of any person other than the Commonwealth, ensuring that no pre-existing rights or liabilities are adversely impacted by the concession. The instrument extends its application through subordinate instruments, which are detailed in the Customs Tariff Act 1995 and associated regulations.

Key Provisions

The Customs Act 1901 (the Act) under which the Tariff Concession Instrument No. 0708945 was made, permits the Chief Executive Officer of Customs (the CEO) to grant Tariff Concession Orders (TCO) that apply a lower rate of customs duty to specified goods (s 269F). A TCO can only be granted if the CEO is satisfied that the application for the concession meets the core criteria (s 269C), and the goods are not specified in section 269SJ as those that cannot be subject to a TCO. Section 269C sets out that the core criteria is met if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Once the CEO is satisfied that the application meets the core criteria, they 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 (s 269P(3)). The obligations and requirements imposed by the Act on the parties it governs include the requirement for a person to apply to the CEO for a TCO in respect of goods, and for the CEO to decide whether the application meets the core criteria (s 269C). Once the CEO is satisfied that the application meets the core criteria, they 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 (s 269P(3)). The CEO is also required to publish a notice in the Gazette inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO (s 269K(1)). The Tariff Concession Instrument No. 0708945 was made on 12 October 2007 and declares that the certain tableware 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 (s 269P(3)). The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is 0%. 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. There are no offences, penalties, or civil/criminal consequences for breach of the Tariff Concession Instrument No. 0708945. However, failure to comply with the requirements of the Act, such as failing to 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, may result in civil or criminal consequences. The maximum penalty for a civil offence under the Customs Act 1901 is a fine of up to $22,200, or imprisonment for up to two years, or both (s 283). The maximum penalty for a criminal offence under the Customs Act 1901 is a fine of up to $222,000, or imprisonment for up to 10 years, or both (s 283).