EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0713614
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.
Vor Environmental Australia Pty Ltd applied for a TCO in respect of certain weir decanter box on 24 August 2007.
Instrument
TCO No 0713614 was made on 09 November 2007. It declares that those certain weir decanter box 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. 0713614 is taken to have come into force on 24 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 Australian Parliament, provides a legislative framework for managing customs duties and tariffs in Australia. One aspect of this framework involves the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can result in a lower rate of customs duty for specified goods. This process was designed to address economic and trade policy objectives, particularly by facilitating the import of goods that are not produced domestically and thus promoting competitive pricing and consumer benefit. The explanatory statement for Tariff Concession Instrument No. 0713614, made on 9 November 2007, illustrates this mechanism in action, where a concession was granted for certain weir decanter boxes, resulting in a reduction of the duty rate from 5% to free. This legislative approach allows for targeted tariff relief while ensuring that the broader economic policy objectives of the Customs Act are met.
Scope and Application
The Customs Act 1901, under Part XVA, establishes a scheme allowing the Chief Executive Officer (CEO) of Customs to issue Tariff Concession Orders (TCOs) that provide for a lower rate of customs duty on specified goods. This Act applies to individuals or entities seeking to import goods that are not produced in Australia and meet the specified criteria for tariff concessions. The geographic reach of the Act is national, encompassing the entire Commonwealth of Australia. The Act excludes goods specified in section 269SJ, which cannot be subject to a TCO. The application of the Act may be extended or restricted through subordinate instruments such as regulations. In the case of Tariff Concession Instrument No. 0713614, the CEO issued a TCO for certain weir decanter boxes, reducing the duty from 5% to free, effective from the date of the application, 24 August 2007. This TCO does not affect the rights of any person as at the date of registration or impose any liabilities on any person.
Key Provisions
The Customs Act 1901 (section 269F) allows for the application of Tariff Concession Orders (TCOs) to reduce customs duty on certain goods. If an application is made to the Chief Executive Officer of Customs (CEO) for a TCO, the CEO must assess whether the application meets the core criteria set out in section 269C. Specifically, the application will meet the criteria if, on the date it was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C). If the CEO is satisfied that the application meets these criteria, they must make a written order (section 269P(3)) that declares the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies, thereby reducing the duty rate for those goods.
The obligations under the Act require the CEO to ensure that any TCO application made is assessed against the specified criteria. This includes verifying that the goods in question are not substitutable by any goods produced in Australia, which is defined in section 269D as 'goods produced in Australia' and section 269E as 'ordinary course of business'. Furthermore, the CEO is mandated to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid (subsection 269K(1)). This notice must include an invitation for any interested parties to submit their reasons why the TCO should not be made. In the case of TCO No. 0713614, no submissions were received in response to the published notice.
The Act also outlines the consequences of non-compliance with the requirements set out for the imposition of TCOs. However, the specific offences, penalties, or civil/criminal consequences for breach are not detailed in the provided text. The TCO itself does not affect the rights of any person as at the date of registration, so as to disadvantage that person or impose liabilities on a person in respect of anything done or omitted to be done before the date of registration (subsection 269S(1)). The rights of importers, however, will be beneficially affected, as they will be able to apply for a refund of duty on goods imported since the day the TCO is taken to have come into force.