Overview

The Tariff Concession Instrument No. 0712900 was enacted in 2007 under the Customs Act 1901 to address a specific need for tariff concessions on certain goods. This instrument was created to facilitate the application process for tariff concessions by allowing the Chief Executive Officer of Customs to grant lower rates of customs duty on goods that meet specific criteria, provided they are not substitutable by goods produced in Australia. This process is intended to support businesses by reducing the cost of importing specific goods, thereby encouraging trade and economic activity. The instrument was introduced by the Parliament of Australia and aims to streamline the application process for tariff concessions, ensuring that eligible goods benefit from reduced customs duties. The instrument was enacted in response to an application by Bluescope Steel Limited for tariff concessions on certain walking beam furnace gas burner parts. After reviewing the application, the CEO determined that no substitutable goods were produced in Australia, thus meeting the core criteria outlined in the Customs Act. Consequently, the CEO issued Tariff Concession Order No. 0712900, which applies a zero rate of duty on these specific goods, down from the general rate of 5%. This order came into effect on the date the application was lodged, 15 August 2007, and no submissions were received in opposition to the order. The policy objective is to provide relief to importers by allowing them to apply for a refund of duties paid on these goods since the effective date of the tariff concession.

Scope and Application

The Customs Act 1901, specifically Part XVA, authorises the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) for certain goods, thereby reducing the customs duty rate for those goods. The application for a TCO must be made by a person and can be for any goods except those specifically excluded under section 269SJ of the Act. To qualify for a TCO, the goods must not have any substitutable goods produced in Australia in the ordinary course of business, as defined by sections 269D, 269E, and 269F of the Act. If the CEO is satisfied that the application meets these criteria, a TCO is issued, specifying the lower duty rate applicable to the goods. In the case of Instrument TCO No. 0712900, Bluescope Steel Limited applied for and was granted a TCO for certain walking beam furnace gas burner parts, reducing the duty rate from 5% to free. The TCO applies nationally across Australia and does not impose any new liabilities or affect existing rights, except to provide benefits such as duty refunds to importers for goods imported since the TCO took effect on the date of application. The TCO process includes a requirement for the CEO to publish a notice in the Gazette inviting submissions from interested parties, although in this instance, no submissions were received.

Key Provisions

The main operative sections of the Customs Act 1901 in relation to Tariff Concession Orders (TCOs) are sections 269C, 269B, 269D, 269E, 269F, 269P, and 269S. Section 269F allows an application to be made to the Chief Executive Officer (CEO) of Customs for a TCO in respect of goods. Section 269C specifies that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Sections 269B and 269D provide definitions for 'goods produced in Australia' and 'ordinary course of business', while section 269E defines 'substitutable goods'. If the CEO is satisfied that the application meets the core criteria, section 269P(3) requires the CEO to make a TCO. 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 person who believes the TCO should not be made to lodge a submission with the CEO. This process ensures transparency and allows for objections to be raised. Secondly, the CEO is required to assess whether the TCO application meets the core criteria as outlined in section 269C. If the application is approved, the CEO must issue a written order, as stipulated in section 269P(3), declaring the goods subject to the TCO. In terms of offences, penalties, or consequences for breach, the Customs Act 1901 does not explicitly state penalties for failing to comply with the provisions related to TCOs. However, general provisions within the Act and associated regulations could apply to non-compliance, potentially including fines or other legal actions. For instance, under the Crimes Act 1914, penalties may be imposed for knowingly or recklessly making false statements or providing misleading information in the context of customs duty applications. The Tariff Concession Order No. 0712900, made under the Customs Act 1901, came into force on 15 August 2007. This order declares that certain walking beam furnace gas burner parts are subject to a zero rate of customs duty, rather than the general rate of 5%. This concession is based on the CEO's satisfaction that no substitutable goods were produced in Australia. The order also ensures that it does not affect the rights of any person as at the date of registration, except to the benefit of importers who can apply for a refund of duty on goods imported since the TCO's effective date.