EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0712902
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.
Contract Investments Pty Ltd applied for a TCO in respect of certain conveyor belt tapes on 13 August 2007.
Instrument
TCO No 0712902 was made on 19 October 2007. It declares that those certain conveyor belt tapes 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 7.5%. 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. 0712902 is taken to have come into force on 13 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 Tariff Concession Instrument No. 0712902, enacted under the Customs Act 1901, was introduced to address the need for a streamlined process to provide tariff concessions on specific goods that are not produced in Australia, thereby ensuring they are not subject to domestic competition. This instrument was developed in response to applications such as the one made by Contract Investments Pty Ltd for certain conveyor belt tapes, where it was necessary to confirm that no substitutable goods were produced domestically. The instrument was enacted by the Chief Executive Officer of Customs, who is empowered under section 269F of the Act to make Tariff Concession Orders if the application meets the core criteria set out in section 269C. The policy objective is to facilitate the importation of these goods without the imposition of customs duty, thereby supporting specific industries and potentially lowering costs for consumers.
The instrument was implemented on 19 October 2007, retroactive to the date of application on 13 August 2007, ensuring that the rights of importers are protected and that they can apply for refunds of duties paid on the goods since the effective date. This legislative action was taken without imposing any new liabilities on individuals or entities, and no submissions were received in opposition to the tariff concession, indicating broad acceptance of the measure.
Scope and Application
The Tariff Concession Instrument No. 0712902 under the Customs Act 1901 applies to individuals or entities seeking tariff concessions on imported goods, specifically in this instance, conveyor belt tapes. The Act mandates that the Chief Executive Officer of Customs (CEO) must consider applications for Tariff Concession Orders (TCOs) and determine if the goods in question meet the core criteria, which include ensuring that no substitutable goods are produced in Australia at the time of application. The geographic reach of this Act is national, impacting all importers across Australia who are subject to customs duties. The application of this legislation is not restricted by state or territory boundaries, but rather applies uniformly throughout the Commonwealth. Notably, the instrument does not disadvantage any person other than the Commonwealth and does not impose any new liabilities on individuals or entities. Subordinate instruments can further extend or restrict the application of the Act by defining terms such as 'substitutable goods' and 'ordinary course of business', ensuring clarity and consistency in its implementation.
Key Provisions
The Tariff Concession Instrument No. 0712902, under the Customs Act 1901, pertains to the granting of tariff concessions for specific goods. As per Section 269F, individuals or entities can apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) for particular goods. If the CEO is convinced that the application is valid and does not concern goods listed in Section 269SJ, they must assess whether the application meets the core criteria outlined in Section 269C. For a TCO to be granted, it must be established that, on the date the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. The definitions for these terms are further detailed in Sections 269D, 269E, and 269F of the Act.
The obligations imposed by the Act on the CEO include ensuring that applications are assessed against the core criteria and making a written order if the application meets these criteria. Section 269P(3) mandates that the CEO must issue a TCO if satisfied that the application meets the core criteria. Furthermore, Section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made, although in this case, no submissions were received.
The instrument also outlines the consequences of breaching the provisions of the Act. However, specific offences, penalties, or civil/criminal consequences are not detailed in the explanatory statement. Nonetheless, the general implication is that failure to comply with the terms of a TCO or the Act itself could potentially lead to legal repercussions, including fines or other penalties as prescribed by the relevant laws.
This legislation aims to streamline the process for obtaining tariff concessions, ensuring that the concessions are granted fairly and in accordance with the outlined criteria. It also ensures that the rights of importers are protected, allowing them to apply for duty refunds on goods imported since the effective date of the TCO. The process is designed to be transparent, with a requirement for public notice and an opportunity for submissions, although in this instance, no objections were received.