EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0712048
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 Ltd applied for a TCO in respect of certain blast furnace stave fitting parts on 25 July 2007.
Instrument
TCO No 0712048 was made on 9 October 2007. It declares that those certain blast furnace stave fitting 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 5%. The rate of duty for the goods subject to the TCO is 0%.
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. 0712048 is taken to have come into force on 25 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. 0712048 was enacted in 2007 under the Customs Act 1901 to address a specific gap in the tariff concession scheme. The Customs Act 1901 establishes a framework where the Chief Executive Officer of Customs can issue Tariff Concession Orders (TCOs), which apply lower rates of customs duty on certain goods. The primary objective of this legislation is to ensure that tariff concessions are granted when appropriate, particularly when no substitutable goods are produced in Australia. In this instance, Bluescope Steel Ltd applied for a TCO for certain blast furnace stave fitting parts, which was subsequently granted as no substitutable goods were being produced in Australia. The instrument, which was published in the Gazette with no objections received, effectively reduces the duty rate from 5% to 0% for these specific goods. The Tariff Concession Instrument No. 0712048 was enacted by the relevant legislature to streamline the application process for tariff concessions and ensure fair treatment of applicants and importers.
Scope and Application
The Tariff Concession Instrument No. 0712048 under the Customs Act 1901 applies to the specific goods identified in the instrument, in this case certain blast furnace stave fitting parts, which have been granted a tariff concession order (TCO) by the Chief Executive Officer of Customs (CEO). The instrument is designed to provide a lower rate of customs duty for these goods, thereby benefiting importers who purchase them. The application and operation of this instrument are confined to the geographic and jurisdictional reach of the Commonwealth of Australia, as it pertains to the administration of customs duties under federal law. The Act does not specify any exclusions or exemptions for this particular TCO, provided that the application meets the core criteria, which include the absence of substitutable goods being produced in Australia in the ordinary course of business on the day the application was lodged. The instrument also extends its application through subordinate instruments, which may further define the scope and conditions under which the TCO operates.
Key Provisions
The Tariff Concession Instrument No. 0712048, made under the Customs Act 1901, addresses the application and granting of Tariff Concession Orders (TCOs) for specific goods. Section 269F of the Act permits a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO concerning certain goods. The CEO must consider if the application meets the core criteria as outlined in section 269C, which requires that no substitutable goods were produced in Australia on the date the application was lodged. If satisfied, the CEO must issue a TCO, as per section 269P(3), that reduces the customs duty on the specified goods, in this case, to 0% (section 269S(1)).
The obligations under the Customs Act 1901 for the CEO include ensuring that a TCO application meets the specified criteria before making a decision. Section 269K(1) mandates the CEO to publish a notice in the Gazette inviting submissions from any person who might oppose the making of a TCO. In the case of TCO No. 0712048, no submissions were received. Furthermore, the Act ensures that the rights of persons, other than the Commonwealth, are not adversely affected by the TCO, aligning with the provision in section 269S(1) that a TCO is considered effective from the date the application was lodged.
Failure to comply with the requirements of the Customs Act 1901 can lead to various consequences. While the explanatory statement does not specify particular offences, breaches of the Act may incur penalties as outlined in the Customs Act and associated regulations. Civil and criminal penalties can be imposed, depending on the nature and severity of the breach. However, the specific maximum penalties are not detailed within the explanatory statement. Importers, however, have the right to apply for a refund of duty on goods imported since the TCO came into force, as per paragraph 126(1)(r) of the Regulations.