EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0709464
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.
Water Corporation applied for a TCO in respect of certain wastewater treatment surface aerators on 03 July 2007.
Instrument
TCO No 0709464 was made on 14 September 2007. It declares that those certain wastewater treatment surface aerators 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. 0709464 is taken to have come into force on 03 July 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. 0709464, enacted in 2007 under the Customs Act 1901, aims to address the issue of providing tariff concessions on specific goods that are not produced domestically, thereby ensuring fair competition and potentially lowering costs for entities importing these goods. This instrument was introduced to streamline the process of applying for and granting tariff concessions, facilitating trade by offering reduced customs duty rates on goods that are not manufactured within Australia and for which no suitable substitute is available. The enacting body responsible for this legislation is the Chief Executive Officer of Customs, who must ensure that the application for a tariff concession order aligns with the criteria set forth in the Act, particularly concerning the non-production of substitutable goods in Australia.
The policy objective of this instrument is to support Australian businesses and consumers by making imported goods more affordable, which in turn can stimulate economic activity and competition within the market. By providing a tariff concession, the Customs Act 1901 allows for the importation of certain wastewater treatment surface aerators at a reduced duty rate, enhancing accessibility and potentially leading to advancements in environmental technology and practices. The instrument ensures that the application process is transparent, with an opportunity for public input, and that the rights of existing stakeholders are preserved, thus maintaining the integrity of the legislative framework.
Scope and Application
The Tariff Concession Instrument No. 0709464 under the Customs Act 1901 applies to the specific goods for which a Tariff Concession Order (TCO) is granted by the Chief Executive Officer of Customs (CEO). In this instance, the Act applies to the certain wastewater treatment surface aerators specified in the TCO. The legislation is applicable to the entities or individuals involved in the importation of these goods, providing them with tariff concessions as specified. The geographic reach of this Act is national, as it is an instrument under the Commonwealth’s Customs Act 1901. It applies across Australia, ensuring uniform treatment of the goods subject to the TCO. The Act excludes goods specified in section 269SJ, which cannot be subject to a TCO, and any applications concerning these excluded goods are not eligible for the tariff concessions. The Act’s application can be extended or restricted through subordinate instruments, although this particular TCO does not impose any new liabilities and does not affect the rights of persons as at the date of registration.
Key Provisions
The primary operative sections of this legislation are sections 269C, 269B, 269D, 269E, 269F, 269P, 269SJ, and 269K. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of specific goods. Section 269C outlines the core criteria that the CEO must be satisfied with before a TCO can be issued. It states that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Sections 269B, 269D, and 269E define key terms such as "goods produced in Australia," "ordinary course of business," and "substitutable goods." Section 269P(3) mandates that if the CEO is satisfied with the application, they must issue a written TCO. Section 269SJ specifies the goods that cannot be subject to a TCO, and section 269K requires the CEO to publish a notice in the Gazette inviting submissions if a TCO application is deemed valid.
The Act imposes several obligations and requirements on the parties involved. The CEO of Customs must ensure that the application for a TCO meets the core criteria as outlined in section 269C. This involves verifying that no substitutable goods were produced in Australia in the ordinary course of business at the time the application was lodged. The CEO must also publish a notice in the Gazette inviting submissions if the application is accepted as valid, as per section 269K. Once the CEO is satisfied that the application meets the core criteria, they must issue a written TCO under section 269P(3). The TCO will then come into effect on the day the application was lodged, as stated in section 269S(1).
There are no explicit offences, penalties, or consequences mentioned for breach of this legislation. However, the failure to adhere to the prescribed process for applying for and issuing a TCO could potentially result in the TCO not being issued, thereby leaving the applicant without the tariff concession. Additionally, any person who considers that there are reasons why a TCO should not be made has the opportunity to lodge a submission with the CEO under section 269K. This process ensures that all interested parties have a chance to voice their concerns, which can influence the CEO’s decision.