EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0709590
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.
Queensland Department of Infrastructure applied for a TCO in respect of a certain water pipeline plant on 21 June 2007.
Instrument
TCO No 0709590 was made on 07 September 2007. It declares that those certain water pipeline 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. 0709590 is taken to have come into force on 21 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. 0709590 was enacted under the Customs Act 1901 to address the need for tariff concessions for specific goods, ensuring they receive preferential treatment in terms of customs duties. This instrument was introduced to facilitate the application process for tariff concessions by allowing the Chief Executive Officer of Customs to grant concessions under certain conditions, thereby promoting trade efficiency and economic benefits. The instrument was made on 7 September 2007, following an application by the Queensland Department of Infrastructure for a tariff concession on certain water pipeline plants, which was accepted on 21 June 2007. The instrument aims to ensure that no substitutable goods were produced in Australia, thereby qualifying for the concession. The policy objective of this instrument is to streamline the customs process and provide relief to importers by reducing the duty on specified goods from the general rate to free, enhancing the competitiveness of Australian industries in the global market.
Scope and Application
The Tariff Concession Instrument No. 0709590 is an instrument under Part XVA of the Customs Act 1901, which provides for the making of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This particular Instrument pertains to a water pipeline plant applied for by the Queensland Department of Infrastructure on 21 June 2007, and it was made on 7 September 2007. The Instrument applies to the goods specified in the application, which in this case are certain water pipeline plants. The scope of the Instrument is limited to the application of a reduced rate of customs duty, specifically item 50 of Schedule 4 to the Customs Tariff Act 1995, which sets the rate of duty for these goods at free, down from the general rate of 5%. The Instrument has a national reach, being a Commonwealth instrument under the Customs Act 1901. It does not impose any liabilities on any person and does not affect the rights of a person (other than the Commonwealth) as at the date of registration. The Instrument also does not extend to goods specified in section 269SJ of the Act, which are those that cannot be subject to a TCO. The Instrument may be extended or restricted through subordinate instruments, but this particular Instrument does not provide for any such extensions or restrictions.
Key Provisions
The Tariff Concession Order (TCO) No. 0709590 under the Customs Act 1901 (section 269F) allows for a concession on customs duty for certain goods, in this case, a specific type of water pipeline plant. The primary operative section, section 269C, stipulates that for an application to meet the core criteria, no substitutable goods should be produced in Australia on the date the application was lodged. If the Chief Executive Officer of Customs (CEO) is satisfied that the application meets these criteria, they are required to issue a written TCO (section 269P(3)). This specific TCO declares that the certain water pipeline plants are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, with a general rate of duty of 5% reduced to free under the concession.
The Act imposes several obligations on the parties involved. Firstly, section 269K(1) mandates that the CEO must publish a notice in the Gazette inviting any interested parties to submit objections if they believe the TCO should not be made. In this case, no submissions were received in response to the notice. Additionally, section 269S(1) stipulates that a TCO is deemed to come into force on the date the application was lodged, which for TCO No. 0709590 is 21 June 2007. The TCO also ensures that it does not affect the rights of any person as at the date of registration, thereby protecting existing rights and not imposing new liabilities on anyone other than the Commonwealth (subsection 269S(1)).
Section 126(1)(r) of the Regulations allows importers of the goods subject to the TCO to apply for a refund of duty on goods imported since the TCO came into force, which is beneficial for importers. The TCO, however, does not impose any new liabilities on any person. It is also essential to note that the TCO does not disadvantage any person or impose liabilities in respect of anything done or omitted to be done before the date of registration.
For breaches of the provisions under the Customs Act 1901, there are potential offences, penalties, or civil/criminal consequences. While the explanatory statement does not explicitly detail these consequences, under Australian law, non-compliance with customs regulations can lead to severe penalties, including fines and imprisonment, depending on the severity of the breach. The maximum penalties for customs-related offences can vary, but they often include substantial fines and/or imprisonment terms as determined by the relevant courts.