EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0719767
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.
Brisbane Airport Corporation Pty Limited applied for a TCO in respect of certain blast containment unit on 22 November 2007.
Instrument
TCO No 0719767 was made on 08 February 2008. It declares that those certain blast containment unit 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. 0719767 is taken to have come into force on 22 November 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, provides for the regulation of customs and excise duties and the control of the import and export of goods. The Tariff Concession Instrument No. 0719767 was introduced to address the problem of ensuring that essential goods that are not produced domestically can enter Australia at a reduced tariff rate, thereby promoting economic efficiency and competitiveness. This particular instrument was made under section 269F of the Act, which allows for the application of tariff concessions on goods not produced in Australia in the ordinary course of business. The policy objective is to facilitate the importation of goods that are critical for certain industries or sectors, provided no suitable domestic alternatives exist. In this case, the Brisbane Airport Corporation Pty Limited successfully applied for tariff concessions on certain blast containment units, resulting in a tariff rate of free instead of the general rate of 5%. The instrument was published in the Gazette with no objections received, and it came into force on the date the application was lodged, 22 November 2007.
Scope and Application
The Tariff Concession Instrument No. 0719767, made under the Customs Act 1901, applies to the specific blast containment units for which Brisbane Airport Corporation Pty Limited applied, and it is administered by the Chief Executive Officer of Customs. The application of this Instrument is confined to those goods for which a Tariff Concession Order (TCO) has been approved, in this case, certain blast containment units that meet the criteria set out in the Act, and it comes into effect from the date the application was lodged, 22 November 2007. The primary purpose of this Instrument is to allow for a lower rate of customs duty on these specified goods, with the general duty rate being reduced to free, provided that no substitutable goods were produced in Australia at the time the application was made. The Instrument does not extend to any other goods unless specifically mentioned and does not affect the rights of any person other than the Commonwealth, ensuring that no pre-existing liabilities or disadvantages are imposed on any party as a result of its implementation.
Key Provisions
The primary operative sections of this Tariff Concession Order (TCO) revolve around the approval and application of tariff concessions on specific goods. Section 269F of the Customs Act 1901 allows an application for a TCO to be made to the Chief Executive Officer (CEO) of Customs. If the CEO determines that the application is not in respect of goods excluded under section 269SJ and meets the core criteria outlined in section 269C, the CEO must make a written order granting the concession. Section 269P(3) further stipulates that if the CEO is satisfied that the application meets the core criteria, the CEO must declare the goods to which a specific item of Schedule 4 to the Customs Tariff Act 1995 applies, effectively granting the tariff concession.
The Act imposes several obligations on the parties involved. The CEO must ensure that the application for a TCO does not pertain to goods specified in section 269SJ and meets the core criteria. Once an application is deemed valid, the CEO is required to publish a notice in the Gazette, inviting any person who believes there are reasons why the TCO should not be made to lodge a submission (subsection 269K(1)). Additionally, the TCO itself does not affect the rights of any person, other than the Commonwealth, as at the date of registration, ensuring that no person is disadvantaged or imposed with liabilities in relation to actions taken prior to the registration of the TCO.
The Act also delineates consequences for breaches, although specific offences and penalties are not detailed in the provided text. Generally, under Australian legislation, breaches of customs regulations can result in civil or criminal penalties, depending on the severity and intent of the breach. Civil penalties may include fines, while criminal penalties might include imprisonment. The maximum penalties can vary significantly based on the specific breach and relevant provisions of other applicable laws. However, in this particular TCO, no specific penalties are mentioned for non-compliance with the terms of the concession.