EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0716883
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.
Hunter Douglas Ltd applied for a TCO in respect of certain window furnishing fabrics on 5 October 2007.
Instrument
TCO No 0716883 was made on 14 December 2007. It declares that those certain window furnishing fabrics 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 10%. 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. 0716883 is taken to have come into force on 5 October 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, establishes a framework through which Tariff Concession Orders (TCOs) may be issued by the Chief Executive Officer of Customs. These orders provide for lower rates of customs duty on specified goods. The primary purpose of this legislation is to ensure that goods imported into Australia benefit from reduced tariffs, thereby promoting trade and economic efficiency. The Tariff Concession Instrument No. 0716883, made under this Act, addresses the specific case of certain window furnishing fabrics, for which a lower rate of customs duty has been applied. This legislative instrument was introduced to provide tariff relief to Hunter Douglas Ltd, the applicant, and aligns with the policy objective of facilitating trade by reducing the cost of imported goods.
Scope and Application
The Customs Act 1901, through its Part XVA, facilitates the implementation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders, applicable to goods specified in a TCO, lower the customs duty rate for those goods. Any person can apply to the CEO for a TCO, provided the goods are not listed in section 269SJ of the Act, which excludes certain items from tariff concessions. The CEO must determine if the application meets the core criteria, including whether substitutable goods are produced in Australia in the ordinary course of business. If satisfied, a TCO is issued, reducing the duty rate for the specified goods. The application process includes a requirement for the CEO to publish a notice in the Gazette, inviting submissions from interested parties, although no submissions were received for TCO No 0716883. The commencement date of a TCO is the date the application is lodged, and it does not affect any rights or liabilities of individuals other than the Commonwealth as of the registration date. This legislative framework is intended to benefit importers by allowing them to apply for duty refunds on goods imported since the effective date of the TCO.
Key Provisions
The Tariff Concession Instrument No. 0716883, as stated under the Customs Act 1901, provides a lower rate of customs duty for certain window furnishing fabrics. The main operative sections (269C, 269B, 269D, 269E, and 269P) outline the criteria for making a Tariff Concession Order (TCO). Specifically, section 269C states that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B further defines key terms such as 'goods produced in Australia', 'ordinary course of business', and'substitutable goods'. Under section 269P(3), if the Chief Executive Officer of Customs (CEO) is satisfied that the application meets the core criteria, they must make a written order 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 applies.
The Act imposes several obligations on the parties it governs. Firstly, any person seeking a TCO must apply to the CEO and ensure that the goods in question are not specified in section 269SJ of the Act, which lists those goods that cannot be subject to a TCO. The CEO must then determine if the application meets the core criteria, specifically if no substitutable goods were produced in Australia in the ordinary course of business. If the CEO is satisfied with the application, they must make a TCO and publish a notice in the Gazette inviting any interested party to lodge a submission against the TCO. In this case, the CEO did not receive any submissions against the TCO application.
There are potential consequences for breach of the provisions within this legislation. While the explanatory statement does not specify criminal or civil penalties, it is implied that non-compliance with the Act’s requirements could result in legal action. For instance, any person who fails to adhere to the terms of the TCO or the Customs Act 1901 could face legal consequences, though specific penalties are not detailed in the provided text. The statutory framework suggests that the Act is designed to protect and regulate the importation process, ensuring that only eligible goods benefit from tariff concessions. The rights of importers are protected, and they can apply for a refund of duty on goods imported since the TCO came into force, as per paragraph 126(1)(r) of the Regulations.