EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0716468
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.
Thyssen Krupp Lifts Pacific Pty Limited applied for a TCO in respect of certain aircraft passenger boarding telescopic apron drive bridges on 27 September 2007.
Instrument
TCO No 0716468 was made on 14 December 2007. It declares that those certain aircraft passenger boarding telescopic apron drive bridges 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. 0716468 is taken to have come into force on 27 September 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 Parliament of Australia, established a framework for the administration of customs duties and the regulation of imports and exports. This legislation sought to address the need for a structured approach to tariff concessions, ensuring that certain goods could benefit from reduced customs duties if specific criteria were met. Part XVA of the Act, which was introduced to manage tariff concessions, allows the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) for goods where no substitutable goods are produced in Australia. The policy objective is to facilitate trade by providing duty concessions on specific goods, thereby encouraging economic activity and supporting industries that rely on imported materials or components.
The Tariff Concession Instrument No. 0716468, made under the Customs Act 1901, addresses a specific case where Thyssen Krupp Lifts Pacific Pty Limited applied for a concession on certain aircraft passenger boarding telescopic apron drive bridges. The Chief Executive Officer of Customs was satisfied that no substitutable goods were produced in Australia, leading to the issuance of a TCO that reduced the duty on these goods from 5% to free. This concession is intended to benefit the rights of importers, who can apply for a refund of duty on these goods imported since the effective date of the TCO, without imposing any liabilities on other parties.
Scope and Application
The Tariff Concession Instrument No. 0716468, made under the Customs Act 1901, applies to specific aircraft passenger boarding telescopic apron drive bridges and is administered by the Chief Executive Officer of Customs. This instrument was established to provide tariff concessions for goods that do not have substitutable goods produced in Australia, ensuring that these goods attract a lower rate of customs duty as specified in the Customs Tariff Act 1995. The concession was granted following an application by Thyssen Krupp Lifts Pacific Pty Limited, and the CEO determined that no substitutable goods were produced in Australia, thereby meeting the core criteria under the Act. The instrument, which came into effect on 27 September 2007, provides a free rate of duty for the specified goods, down from the general rate of 5%. Importantly, the application of this TCO does not disadvantage any person, nor does it impose any liabilities on individuals other than the Commonwealth, ensuring that rights and obligations are preserved for all parties involved.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0716468 (referenced as TCO No. 0716468) involve the creation of tariff concession orders under the Customs Act 1901 (section 269F). This instrument, made on 14 December 2007, declares that certain aircraft passenger boarding telescopic apron drive bridges are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, with a rate of duty reduced from 5% to free. This concession is contingent upon the Chief Executive Officer of Customs (CEO) being satisfied that no substitutable goods are produced in Australia (section 269C). These sections establish the framework for tariff concessions and their specific application to the goods in question.
The obligations and requirements imposed by this Act on the parties or entities it governs are primarily centred around the application process for tariff concessions. An applicant, such as Thyssen Krupp Lifts Pacific Pty Limited, must submit an application to the CEO for a TCO, ensuring that the goods in question meet the criteria specified in sections 269B and 269C of the Customs Act 1901. The CEO must then assess the application and, if satisfied, make a written order declaring the applicable tariff concession (section 269P(3)). Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any interested parties, although in this case, no submissions were received (subsection 269K(1)).
Offences, penalties, or civil/criminal consequences for breach of the Customs Act 1901 are not explicitly detailed within the text of TCO No. 0716468. However, the general provisions of the Customs Act 1901 and associated regulations would apply. Non-compliance with customs regulations can lead to civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach. For instance, providing false information in an application for a tariff concession could result in penalties under the Customs Act 1901, although the specific maximum penalties are not detailed in this text. It is essential for applicants and the CEO to adhere strictly to the requirements set out in the Act to avoid any potential legal repercussions.