EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0712978
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.
Robert Bosch Australia Pty Ltd applied for a TCO in respect of certain fascia control panels on 21 August 2007.
Instrument
TCO No 0712978 was made on 29 October 2007. It declares that those certain fascia control panels 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. 0712978 is taken to have come into force on 21 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, enacted by the Commonwealth Parliament, outlines a framework for the application and administration of customs duties, including the creation of Tariff Concession Orders (TCOs). These orders can reduce the customs duty on specified goods if certain criteria are met. TCO No. 0712978, made under this Act, was introduced on 29 October 2007 in response to an application by Robert Bosch Australia Pty Ltd for tariff concessions on certain fascia control panels. The policy objective of this concession is to encourage the importation of goods that are not produced in Australia, thereby benefiting consumers and potentially promoting competition and innovation in the market. The Tariff Concession Instrument specifies that the duty on these particular fascia control panels is reduced from 5% to 0%, effective from 21 August 2007, the date the application was lodged. The process involved publishing a notice in the Gazette and inviting submissions, though none were received.
Scope and Application
The Tariff Concession Instrument No. 0712978 under the Customs Act 1901 applies to goods for which a Tariff Concession Order (TCO) has been made by the Chief Executive Officer of Customs (CEO). Specifically, the instrument pertains to certain fascia control panels for which Robert Bosch Australia Pty Ltd applied for a TCO on 21 August 2007. The instrument, issued on 29 October 2007, declares that the specified fascia control panels are subject to a 0% duty rate, as opposed to the general 5% duty rate. The Act governs this process by allowing applications for TCOs if the goods are not specified in section 269SJ and if the CEO determines that the application meets the core criteria, specifically that no substitutable goods were produced in Australia. The instrument applies on a national level across Australia, governed by the Commonwealth. There are no exclusions or exemptions mentioned in the Act regarding the application of this TCO, and the CEO did not receive any submissions opposing the issuance of the TCO. The instrument does not affect any rights of persons other than the Commonwealth and does not impose any liabilities on persons other than the Commonwealth.
Key Provisions
The Tariff Concession Instrument No. 0712978 under the Customs Act 1901 (the Act) sets out provisions that allow for the application of a lower rate of customs duty on specific goods. The instrument was made by the Chief Executive Officer of Customs (the CEO) on 29 October 2007, following an application by Robert Bosch Australia Pty Ltd for certain fascia control panels. Section 269F of the Act enables a person to apply to the CEO for a Tariff Concession Order (TCO). If the CEO is satisfied that the application meets the criteria set out in section 269C, which includes the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged, the CEO must make a written order declaring the goods to which the concession applies. In this instance, the CEO declared that the fascia control panels are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, with a duty rate of 0%, down from the general rate of 5%.
Under the Act, the CEO has certain obligations when processing a TCO application. Firstly, the CEO must ensure that the application does not pertain to goods specified in section 269SJ of the Act, which are ineligible for a TCO. If the application is deemed valid, the CEO must then determine if it meets the core criteria, as outlined in section 269C. This involves assessing whether substitutable goods were produced in Australia in the ordinary course of business on the day the application was made. If the CEO is satisfied that the application meets the criteria, they must proceed to make a TCO, as stipulated in subsection 269P(3) of the Act. Additionally, under subsection 269K(1), the CEO is required to publish a notice in the Gazette, inviting any interested parties to lodge submissions if they believe there are reasons why the TCO should not be made.
Failure to comply with the requirements of the Customs Act 1901 or the regulations can result in various consequences. Section 284 of the Act provides for the imposition of penalties for offences, which can include fines and imprisonment. Specifically, under section 284(1)(a), any person who knowingly makes a false statement or representation in an application for a TCO can be fined up to 10,000 penalty units or imprisoned for up to five years, or both. Similarly, under section 284(1)(b), any person who wilfully neglects to comply with a requirement of the Act can be fined up to 10,000 penalty units or imprisoned for up to two years, or both. These penalties reflect the seriousness with which the law treats breaches of customs regulations and the importance of adhering to the statutory requirements.