EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0713588
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.
Bose Pty Ltd applied for a TCO in respect of certain stereo amplifiers on 27 August 2007.
Instrument
TCO No 0713588 was made on 2 November 2007. It declares that those certain stereo amplifiers 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. 0713588 is taken to have come into force on 27 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. 0713588, enacted under the Customs Act 1901, was introduced to provide relief to importers by reducing the customs duty on certain goods, specifically Bose Pty Ltd's stereo amplifiers. This measure was enacted to ensure that the importation of these goods does not incur duty charges, thus facilitating smoother trade operations and potentially reducing costs for importers. The instrument was issued by the Chief Executive Officer of Customs (CEO) following an application by Bose Pty Ltd and after verifying that no substitutable goods were being produced in Australia at the time of the application. This legislative action aims to promote fair trade practices by ensuring that imported goods are not subject to duties if they are not being produced domestically, thereby encouraging competition and market efficiency.
The instrument was made in accordance with the provisions of the Customs Act 1901, which allows the CEO to grant tariff concessions if certain criteria are met. No submissions opposing the concession were received, indicating broad acceptance of the application. The tariff concession is effective from the date the application was lodged, 27 August 2007, and does not affect any existing rights or impose new liabilities on individuals or entities other than the Commonwealth. This legislative approach underscores the policy objective of supporting importers by reducing their financial burden, thus fostering a more competitive import market.
Scope and Application
The Customs Act 1901, as amended by Tariff Concession Instrument No. 0713588, applies to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs (CEO). This legislation is specifically tailored to goods for which an application has been successfully lodged under section 269F, provided they do not fall under the exclusions listed in section 269SJ. A TCO application is considered valid if, on the date of application, there are no substitutable goods produced in Australia in the ordinary course of business, as per section 269C. The instrument was applied to Bose Pty Ltd's application for certain stereo amplifiers, resulting in a concession that reduced the customs duty rate from 5% to 0%. The CEO is required to publish a notice in the Gazette, inviting submissions against the TCO application, though in this case, no submissions were received. The TCO applies retroactively from the date the application was lodged, in this instance, 27 August 2007, without affecting the rights of any person as at the date of registration or imposing any liabilities for actions taken prior to the registration date.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Order No. 0713588, revolve around the Customs Act 1901, and they provide for the concession of customs duties on certain goods. Under section 269F (2), a person may apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of goods. If the application is deemed valid and meets the core criteria outlined in sections 269C and 269P(3), the CEO must make a written order, effectively granting a TCO for those goods. This particular TCO, No. 0713588, applies to certain stereo amplifiers and reduces the duty rate from 5% to 0%.
The obligations imposed by this Act on the parties involved are primarily on the CEO of Customs. Once a TCO application is accepted as valid, the CEO must publish a notice in the Gazette, as per subsection 269K(1), inviting submissions from any interested parties who might have reasons why the TCO should not be made. This ensures a degree of transparency and allows for stakeholder input. Additionally, the CEO must ensure that the application meets the core criteria before issuing a TCO. The applicant, in this case Bose Pty Ltd, must provide sufficient information to satisfy the CEO that the goods in question do not have substitutable goods produced in Australia, as outlined in section 269C.
Should there be a breach of the conditions or requirements set out by the Customs Act 1901, there could be both civil and criminal consequences. However, the Explanatory Statement does not provide specific details on offences, penalties, or maximum penalties for breach in this particular context. Generally, under Australian law, breaches of customs regulations can lead to penalties including fines and imprisonment, depending on the severity and intent of the breach. The specific legal repercussions would be determined in the context of the broader customs legislation and related case law.