EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0720913
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.
W.W. Wedderburn Pty Limited applied for a TCO in respect of certain c wrap labelling machines on 07 December 2007.
Instrument
TCO No 0720913 was made on 29 February 2008. It declares that those certain c wrap labelling machines 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. 0720913 is taken to have come into force on 07 December 2008.
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 for the imposition of customs duties on imported goods. One notable feature of this Act is the provision for Tariff Concession Orders (TCOs), which were introduced to address the problem of imposing excessive customs duties on goods for which no Australian-made substitutes exist, thereby potentially encouraging local production and innovation. The instrument F2008L00682, Tariff Concession Instrument No. 0720913, exemplifies the application of this framework by granting tariff concessions on certain c wrap labelling machines, reducing the duty from 5% to free. The policy objective here is to support Australian industries by mitigating the impact of high import duties on goods where local alternatives are not available. This approach is intended to foster economic growth and efficiency by making imported goods more competitive with locally produced items.
Scope and Application
The Tariff Concession Instrument No. 0720913 under the Customs Act 1901 applies to the concession of customs duty on specific goods, in this case, certain c wrap labelling machines. The Act enables the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) that provide a lower rate of customs duty for goods that are the subject of such orders. The application for a TCO can be made by any person, and the process involves meeting certain criteria, including the absence of substitutable goods produced in Australia at the time of application. The geographic reach of this legislation is national, as it applies to all imports into Australia. The instrument does not affect the rights of any person, except to the benefit of importers who can apply for a refund of duty on goods imported since the TCO came into force. Any exclusions or exemptions are outlined in section 269SJ of the Act, which specifies goods that cannot be subject to a TCO. The application and effect of the TCO may be further extended or restricted through subordinate instruments as necessary.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0720913, pursuant to section 269F of the Customs Act 1901, allow for the application of a Tariff Concession Order (TCO) in respect of certain goods. A TCO may be applied for by a person, and if the Chief Executive Officer (CEO) of Customs determines that the application is valid and meets the core criteria under section 269C, a TCO is issued. Specifically, section 269P(3) requires the CEO to make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995, with a specified rate of duty. In this case, TCO No. 0720913 applies to certain c wrap labelling machines, which now have a duty rate of free, as opposed to the general rate of 5%.
The obligations and requirements imposed by the Act on the parties involved are primarily centred on the process for applying for and issuing a TCO. An applicant must ensure that their application is not in respect of goods specified in section 269SJ, which prohibits certain goods from being subject to a TCO. The CEO must then assess whether the application meets the core criteria, which include ensuring that no substitutable goods were produced in Australia on the day the application was lodged, as defined in sections 269D and 269E of the Act. Once a TCO is issued, the CEO is required to publish a notice in the Gazette inviting any person to submit reasons why the TCO should not be made. In this instance, no submissions were received in response to the notice published for TCO No. 0720913.
The Act also outlines the consequences for breaches of its provisions. While specific offences and penalties are not detailed within the explanatory statement, it is implied that any breaches of the Act, such as submitting an invalid application or failing to comply with a TCO, could lead to legal consequences. These may include fines, penalties, or other legal actions as prescribed by the Customs Act 1901 or any related regulations. However, the exact penalties would depend on the nature and severity of the breach, as well as any additional provisions in related legislation.