EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0712309
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.
ASA-DGS Pty Ltd applied for a TCO in respect of certain wine bottle cap discs on 31 July 2007.
Instrument
TCO No 0712309 was made on 9 October 2007. It declares that those certain wine bottle cap discs 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. 0712309 is taken to have come into force on 31 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 Customs Act 1901, enacted by the Australian Parliament, provides for the regulation of customs and excise duties, among other things. It established a framework under which the Chief Executive Officer of Customs could make Tariff Concession Orders (TCOs), which would apply lower rates of customs duty on certain goods. The Tariff Concession Instrument No. 0712309 was introduced on 9 October 2007 to address the specific issue of tariff concessions for certain wine bottle cap discs, as applied for by ASA-DGS Pty Ltd on 31 July 2007. The policy objective, as set forth in the Act, is to ensure that no substitutable goods were produced in Australia when the application was lodged, which in this case, the CEO was satisfied with, thus allowing for the concession to be granted. This legislative instrument effectively reduces the customs duty on these specific goods from the general rate of 5% to 0%.
Scope and Application
The Tariff Concession Instrument No. 0712309 is an application of the Customs Act 1901, which facilitates the reduction of customs duty on specific goods that meet certain criteria. The instrument applies to individuals or entities that seek tariff concessions for goods, in this case, ASA-DGS Pty Ltd applied for a concession on certain wine bottle cap discs. The instrument applies to the import of these goods and operates under the broader scheme established in Part XVA of the Customs Act 1901, which enables the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs). These orders apply to goods for which an application is made and approved by the CEO, provided the goods are not specified in section 269SJ of the Act and meet the core criteria outlined in sections 269C, 269B, and 269D of the Act. The geographic and jurisdictional reach of this legislation is national, as it applies throughout Australia under the authority of the Commonwealth. The TCO does not extend to goods specified in section 269SJ and does not impose any liabilities on persons other than the Commonwealth. The instrument came into force on 31 July 2007, the date on which the application was lodged, and does not affect the rights of any person as at the date of registration in a way that would disadvantage them or impose liabilities in respect of actions taken prior to the registration.
Key Provisions
The key operative sections of this legislation include section 269F, which allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO); section 269C, which outlines the core criteria for a TCO application to be considered valid; and section 269P(3), which mandates the CEO to issue a written TCO if the application meets the core criteria. Additionally, section 269K(1) requires the CEO to publish a notice in the Gazette to invite submissions regarding the TCO application, while section 269S(1) stipulates that a TCO comes into force on the day the application is lodged.
Under the Customs Act 1901, the CEO is tasked with evaluating TCO applications to ensure they meet the core criteria, as defined in section 269C. The CEO must also verify that the goods in question are not specified in section 269SJ, which lists goods ineligible for a TCO. If the application is deemed valid, the CEO must issue a TCO as per section 269P(3). Furthermore, the CEO must publish a notice in the Gazette, inviting any interested parties to submit their views on the proposed TCO within the stipulated timeframe, as outlined in section 269K(1).
Failure to comply with the provisions of the Customs Act 1901 may result in various civil or criminal consequences. While the explanatory statement does not provide explicit details on the penalties for non-compliance, it is essential to note that breaches of the Act may lead to enforcement actions by the relevant authorities. The potential consequences could range from fines to more severe penalties, depending on the nature and severity of the breach.
In summary, the Tariff Concession Instrument No. 0712309 provides a framework for the issuance of TCOs under the Customs Act 1901. The legislation outlines the core criteria for a valid TCO application, the CEO's obligations in assessing and approving such applications, and the publication requirements for inviting submissions. The TCO in question pertains to certain wine bottle cap discs, granting a concession on the customs duty rate, and it came into force on 31 July 2007. While the explanatory statement does not provide explicit details on the penalties for non-compliance, it is essential for parties subject to the Act to adhere to its provisions to avoid potential consequences.