EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0713108
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.
Bluescope Steel Limited applied for a TCO in respect of certain continuous caster on 17 August 2007.
Instrument
TCO No 0713108 was made on 19 October 2007. It declares that those certain continuous caster sealants 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 free.
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. 0713108 is taken to have come into force on 17 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 and provides the framework for administering customs and excise in Australia. One of the mechanisms under this Act is the ability to issue Tariff Concession Orders (TCOs) which grant preferential rates of customs duty on certain goods. The problem or gap that this legislation addresses is the potential for Australian businesses to be disadvantaged when importing certain goods, particularly if those goods are not produced domestically or if there are no suitable substitutes. The Tariff Concession Instrument No. 0713108 was introduced to provide a specific tariff concession to Bluescope Steel Limited for certain continuous caster sealants, thereby reducing the duty rate from the general rate of 5% to free, effective from the date of the application on 17 August 2007. The policy objective is to ensure that Australian businesses have access to necessary goods at a reduced cost, fostering competitiveness and potentially lowering costs for consumers.
Scope and Application
The Tariff Concession Instrument No. 0713108 applies to specific goods subject to an application for a Tariff Concession Order (TCO) under the Customs Act 1901, facilitating a reduced rate of customs duty. This legislative instrument pertains to any entity or person seeking to import certain continuous caster sealants into Australia, provided these goods are not specified in section 269SJ of the Act as ineligible for a TCO. The geographic reach of the Act extends across the Commonwealth of Australia, encompassing all states and territories. The application of the Act is limited by the core criteria outlined in sections 269C, 269B, and 269D, which must be met for a TCO to be considered by the Chief Executive Officer of Customs (CEO). Notably, the TCO does not disadvantage any person other than the Commonwealth and does not impose any liabilities on individuals or entities for actions taken before the TCO's effective date. The TCO came into force on the date the application was lodged, 17 August 2007, and no submissions were received in response to the notice published in the Gazette.
Key Provisions
The main operative sections of this legislation include sections 269C, 269F, 269K, and 269P, which provide the framework for Tariff Concession Orders (TCOs) under the Customs Act 1901 (the Act). Section 269F allows an application to be made to the Chief Executive Officer of Customs (the CEO) for a TCO in respect of goods. If the application meets the core criteria specified in section 269C, the CEO must make a written order (a TCO). Section 269K requires the CEO to publish a notice in the Gazette after accepting a TCO application as a valid application, inviting any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. Finally, section 269P(3) outlines the process for the CEO to make a TCO if satisfied that the application meets the core criteria.
The Act imposes several obligations and requirements on the parties it governs. For example, section 269C stipulates that a TCO application must meet the core criteria, 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 also publish a notice in the Gazette (subsection 269K(1)) and consider any submissions received in response to the notice. If the CEO is satisfied that the application meets the core criteria, they must make a TCO (subsection 269P(3)). Additionally, the TCO does not affect the rights of any person, other than the Commonwealth, as at the date of registration (subsection 269S(1)).
Breaching the requirements of the Act may result in various civil or criminal consequences. However, the explanatory statement does not explicitly outline specific offences, penalties, or consequences for breach. The Act generally provides for compliance mechanisms and enforcement actions through the Customs Act 1901 and associated regulations. For instance, section 126 of the Customs Act 1901 includes provisions for penalties in relation to breaches of the Act and its regulations, which could include fines or imprisonment. Nevertheless, the precise penalties for breach of this particular legislation would need to be referred to within the broader Customs Act 1901 and its regulations.