EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0718205
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.
Bluescope Steel Ltd applied for a TCO in respect of certain roll grinder parts on 24 October 2007.
Instrument
TCO No 0718205 was made on 30 January 2008. It declares that those certain roll grinder parts 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. 0718205 is taken to have come into force on 24 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 Parliament of Australia, establishes a framework through which the Chief Executive Officer of Customs may grant Tariff Concession Orders (TCOs). These orders facilitate a reduced rate of customs duty on specified goods, provided they meet the core criteria outlined in the Act. The legislation was introduced to address the need for flexible tariff arrangements that could support specific industries by reducing the cost of imported goods necessary for production and design uses not met by local alternatives. The Tariff Concession Instrument No. 0718205, made under this Act, was enacted in response to an application from Bluescope Steel Ltd for tariff concessions on certain roll grinder parts. The instrument declares that these parts are subject to a free rate of duty as no substitutable goods are produced in Australia, thereby promoting cost efficiency and competitiveness in the industry without disadvantaging existing rights or imposing new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0718205, under the Customs Act 1901, applies to entities and individuals involved in the importation of certain roll grinder parts, specifically those for which Bluescope Steel Ltd applied for a tariff concession order. This Act is part of the Commonwealth legislation, thus it extends its jurisdictional reach across Australia. The Act aims to provide relief from customs duty for specific goods when certain conditions are met, particularly when those goods are not substitutable by Australian-produced alternatives. The application of this particular Instrument is effective from the date the application was lodged, 24 October 2007, and it does not disadvantage any party with pre-existing rights or impose liabilities for actions taken prior to its effective date. Exemptions and exclusions from the application of the Tariff Concession Order are governed by the specific criteria outlined in the Customs Act 1901, and any additional rules or specifications may be detailed in subordinate instruments associated with the Act.
Key Provisions
The main sections of the Tariff Concession Instrument No. 0718205 under the Customs Act 1901, as referenced, are sections 269C, 269F, 269P, and 269SJ. Section 269F allows for the application to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of certain goods. Section 269C outlines the core criteria for a TCO application, specifically that no substitutable goods were produced in Australia on the day the application was lodged. Section 269P(3) mandates that if the CEO is satisfied that an application meets the core criteria, a TCO must be issued. Section 269SJ specifies the goods that cannot be subject to a TCO. The Instrument declares that certain roll grinder parts are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, with a duty rate of free as opposed to the general rate of 5%.
The Act imposes several obligations on the parties it governs. The CEO must ensure that the application for a TCO complies with section 269F and that the application does not pertain to goods specified in section 269SJ. The CEO must also assess whether the application meets the core criteria as per section 269C, specifically confirming that no substitutable goods were produced in Australia on the day of the application. Additionally, under section 269K(1), the CEO must publish a notice in the Gazette inviting submissions from interested parties and consider any submissions received.
Breaches of the provisions under the Customs Act 1901, as governed by the Tariff Concession Instrument No. 0718205, may result in civil or criminal consequences. The Act does not explicitly state the penalties for non-compliance with the TCO provisions; however, general provisions of the Customs Act 1901 may apply. These may include fines and imprisonment for offences related to customs duty evasion or incorrect declarations. For civil penalties, breaches could lead to financial penalties or administrative actions as per the general customs regulations. It is also essential to note that any misleading or false information provided in the TCO application could lead to additional scrutiny and potential legal actions against the applicant.