EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0717414
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.
G James Australia Pty Ltd applied for a TCO in respect of certain lifting bridges on 12 October 2007.
Instrument
TCO No 0717414 was made on 30 January 2008. It declares that those certain lifting 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. 0717414 is taken to have come into force on 12 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 was enacted to provide for the administration of customs and excise duties, as well as other import and export controls, to ensure the efficient and effective collection of revenue and to protect the economic interests of Australia. The Act was introduced to address the need for a comprehensive legislative framework governing the administration of customs duties and the regulation of imports and exports. The explanatory statement for Tariff Concession Instrument No. 0717414, which was made by the Chief Executive Officer of Customs under section 269P of the Customs Act 1901, demonstrates the practical application of the Act in providing tariff concessions for specific goods. The instrument was enacted by the relevant legislature, in this case, the CEO of Customs, and aims to provide tariff relief for importers of specified goods, thereby facilitating trade and promoting economic growth.
Scope and Application
The Tariff Concession Instrument No. 0717414 under the Customs Act 1901 applies to the specific goods identified in the application by G James Australia Pty Ltd, namely certain lifting bridges. The instrument is targeted at entities or individuals involved in the importation of these goods, aiming to provide a tariff concession by reducing the customs duty from the general rate of 5% to free. The Act applies to these goods within the Commonwealth of Australia and is administered by the Chief Executive Officer of Customs (CEO), who has the authority to make Tariff Concession Orders (TCOs) as per section 269F of the Act. The geographic reach of this legislation is national, affecting all entities involved in the import of the specified lifting bridges across Australia. The TCO does not affect pre-existing rights or liabilities of any person other than the Commonwealth, ensuring that no existing rights are disadvantaged or new liabilities imposed by the concession. This Act extends its application through the subordinate instrument, TCO No. 0717414, which specifically declares the lifting bridges as goods to which a lower rate of duty applies, aligning with the customs tariff provisions outlined in the Customs Tariff Act 1995.
Key Provisions
The main operative sections of the Customs Act 1901, as it pertains to Tariff Concession Orders (TCOs), include sections 269C, 269F, 269P, and 269S. Section 269F allows for an application to be made to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods. If the application is not in respect of goods specified in section 269SJ, which lists goods that cannot be subject to a TCO, the CEO must assess whether the application meets the core criteria set out in section 269C. If the CEO is satisfied that the application meets these criteria, they are required to make a written order under section 269P(3), declaring that the goods are subject to a specified item of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations on the parties involved. The CEO must assess the validity of TCO applications and determine whether they meet the core criteria, including confirming that no substitutable goods were produced in Australia at the time of application. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made, although no submissions were received in response to the notice for TCO No. 0717414.
Under section 269S(1) of the Act, a TCO is deemed to have come into force on the day the application for the TCO was lodged. For TCO No. 0717414, this means the order is effective from 12 October 2007. The TCO does not affect the rights of any person, other than the Commonwealth, in a way that would disadvantage them or impose liabilities for actions taken before the registration date. Importers, however, benefit from the TCO as they can apply for a refund of duty on goods imported since the effective date of the TCO.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the Act regarding breaches of the TCO provisions. However, the Act ensures that the rights of importers are protected and that no new liabilities are imposed on any person as a result of the TCO. This means that any party affected by the TCO must comply with the terms and conditions as set out in the order without fear of incurring additional liabilities or penalties beyond those specified in the Act.