EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0710146
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.
Yatala Plastics Pty Ltd applied for a TCO in respect of certain pipe extrusion line vacuum calibrators on 28 June 2007.
Instrument
TCO No 0710146 was made on 14 September 2007. It declares that those certain pipe extrusion line vacuum calibrators 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. 0710146 is taken to have come into force on 28 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. 0710146, enacted in 2007, is an instrument made under the Customs Act 1901, which facilitates the application of reduced customs duty rates on specific goods. This particular instrument was introduced to address the need for tariff concessions on certain pipe extrusion line vacuum calibrators, as applied for by Yatala Plastics Pty Ltd. The instrument was made by the Chief Executive Officer of Customs (CEO) following an application and after determining that no substitutable goods were produced in Australia, thus meeting the core criteria set out in section 269C of the Act. The objective of this instrument, as per the policy embedded in the Customs Act, is to ensure that Australian businesses can access necessary goods at reduced costs, thereby enhancing their competitiveness and encouraging the use of specific industrial equipment.
The instrument was published in the Gazette, inviting any objections, but none were received, leading to its effective implementation from 28 June 2007. The application of this tariff concession is retrospective to the date of the application, ensuring that importers can claim refunds for duties paid on the specified goods since that date. This legislative measure aims to provide economic benefits to importers and align with the broader policy objective of facilitating smoother and more cost-effective trade practices within Australia.
Scope and Application
The Tariff Concession Instrument No. 0710146, made under Part XVA of the Customs Act 1901, pertains to the application of tariff concession orders (TCO) concerning certain pipe extrusion line vacuum calibrators. This instrument applies to the specific goods identified in the application made by Yatala Plastics Pty Ltd and to any other entities that import or intend to import similar goods. The geographic scope of the Act is national, as it applies across Australia and is governed by the Commonwealth. The Act excludes goods specified in section 269SJ of the Customs Act 1901, which cannot be subject to a TCO, and requires that no substitutable goods are produced in Australia in the ordinary course of business for the application to meet the core criteria. The Act may extend its application through subordinate instruments, such as regulations, which can provide further detail on the specific conditions and procedures for TCOs. The commencement of this particular TCO is effective from 28 June 2007, the date the application was lodged, without any retrospective effect on the rights or liabilities of any person other than the Commonwealth.
Key Provisions
The key operative sections of the Tariff Concession Instrument No. 0710146, made under the Customs Act 1901, include sections 269C, 269B, 269D, 269E, 269F, 269P, and 269S. Section 269F allows an application to be made to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) for certain goods. If the application meets the core criteria specified in section 269C, such as no substitutable goods being produced in Australia, the CEO must make a TCO (section 269P(3)). The TCO is then published in the Gazette (subsection 269K(1)), and the concession comes into force on the date the application was lodged (subsection 269S(1)). This means that any goods subject to the TCO, such as the pipe extrusion line vacuum calibrators, will be eligible for a tariff concession, in this case, a free rate of duty instead of the general 5% rate.
The Act imposes certain obligations on the parties involved. The applicant, in this case, Yatala Plastics Pty Ltd, must ensure that their application is valid and that the goods in question meet the criteria for a TCO. The CEO has the responsibility of reviewing the application, determining whether it meets the core criteria, and if so, making a TCO. The CEO must also publish a notice in the Gazette inviting any interested parties to submit objections or reasons why the TCO should not be made. In this instance, no submissions were received. The Customs Tariff Act 1995 also plays a role by setting the duty rates for the goods, which are specified in Schedule 4.
The Act outlines consequences for non-compliance with the provisions of the TCO. While the explanatory statement does not explicitly mention specific offences, penalties, or consequences for breach, it is implied that any misuse or misapplication of the TCO could lead to legal action. The TCO itself does not impose any liabilities on any person, but the general provisions of the Customs Act 1901 may still apply in cases of fraudulent or improper use of the concession. Any breaches of the Customs Act could result in criminal or civil penalties, depending on the severity of the offence. The exact penalties would be determined by the relevant sections of the Customs Act 1901 and the circumstances of the breach.