EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0712664
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.
Worksmart Equipment Pty Ltd applied for a TCO in respect of certain track laying dumpers on 8 August 2007.
Instrument
TCO No 0712664 was made on 19 October 2007. It declares that those certain track laying dumpers 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. 0712664 is taken to have come into force on 8 August 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 was enacted by the Australian Parliament to regulate the importation and exportation of goods, including the imposition of customs duties and other charges. The Act provides a framework for the administration of customs and excise and for the collection of revenue. The Tariff Concession Instrument No. 0712664 was introduced to address the specific need for tariff concessions on certain goods, in this case, track laying dumpers. This instrument allows for a reduction in customs duty on these goods from the general rate to a concessional rate of 0%, provided that the core criteria under the Customs Act are met, specifically that no substitutable goods are produced in Australia. The objective of this legislation is to facilitate the import of these goods by reducing their duty, thereby potentially lowering costs for importers and supporting the availability of these goods in the Australian market.
Scope and Application
The Tariff Concession Instrument No. 0712664 under the Customs Act 1901 applies to the specific category of track laying dumpers as requested by Worksmart Equipment Pty Ltd, with the aim of providing a lower rate of customs duty on these goods. The Act applies to the Chief Executive Officer of Customs (CEO) who has the authority to make Tariff Concession Orders (TCOs) based on applications from persons or entities seeking to reduce the customs duty on specified goods. This concession is applicable only if the goods are not substitutable by any goods produced in Australia and meet the criteria outlined in the Act. The instrument's geographic reach is Commonwealth, impacting the importation of these goods across Australia. The application of this TCO does not disadvantage any person other than the Commonwealth and does not impose any new liabilities on individuals or entities. The instrument's commencement date aligns with the date the application was lodged, ensuring that the tariff concession is effective from 8 August 2007.
Key Provisions
The primary sections of this legislation, specifically sections 269C, 269F, and 269P of the Customs Act 1901, establish the framework for Tariff Concession Orders (TCOs). Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO concerning certain goods. If the application is not disqualified under section 269SJ and meets the core criteria outlined in section 269C, the CEO must issue a TCO, as per section 269P(3). Section 269C stipulates that an application meets the core criteria if, on the application date, no substitutable goods were produced in Australia in the ordinary course of business. For TCO No. 0712664, the CEO determined that no substitutable goods were produced in Australia for certain track laying dumpers, leading to a TCO declaration that these goods are subject to a 0% duty rate under item 50 of Schedule 4 to the Customs Tariff Act 1995.
The obligations imposed by the Act on parties and entities primarily concern the application and approval process for TCOs. The applicant must ensure that the application for a TCO complies with the Act's requirements, particularly the core criteria regarding the absence of substitutable goods produced in Australia. The CEO has the duty to review the application and make a decision based on the criteria outlined in section 269C. Additionally, the CEO must publish a notice in the Gazette inviting submissions from interested parties if the application is deemed valid. In this case, the CEO did not receive any submissions opposing the TCO for the track laying dumpers. Once the TCO is issued, it comes into effect on the date the application was lodged, as specified in section 269S(1) of the Act.
In terms of consequences for breach, the Customs Act 1901 does not explicitly detail offences, penalties, or civil/criminal consequences for failing to comply with the TCO provisions. However, general compliance with customs regulations is crucial, and non-compliance can lead to penalties under other sections of the Customs Act or related legislation. For instance, incorrect declarations or fraudulent activities related to customs duties can attract significant penalties, including fines and imprisonment, depending on the severity of the offence. While specific penalties for TCO non-compliance are not outlined in this particular legislation, adherence to the Act's provisions is essential to avoid potential legal repercussions.