EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0720931
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 sinter cooler parts on 07 December 2007.
Instrument
TCO No 0720931 was made on 29 February 2008. It declares that those certain sinter cooler 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. 0720931 is taken to have come into force on 07 December 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 collection of customs duty and other charges on goods imported into Australia, as well as the regulation of imports and exports. The Tariff Concession Instrument No. 0720931, enacted in 2008, addresses the need for tariff concessions on specific imported goods to encourage trade and investment. This instrument was introduced by the Parliament of Australia and aims to provide tariff relief to importers of certain goods by reducing or eliminating customs duty, thereby facilitating the import of these goods into Australia. In this case, the instrument grants a tariff concession to Bluescope Steel Ltd for certain sinter cooler parts, which now have a duty rate of free, as opposed to the general rate of 5%, to support the industry and ensure the availability of these goods within Australia.
Scope and Application
The Tariff Concession Instrument No. 0720931 under the Customs Act 1901 applies to individuals and entities seeking tariff concessions for specific goods, ensuring that the application criteria are met by the Chief Executive Officer of Customs (CEO). The application process involves determining whether the goods in question are not substitutable by goods produced in Australia and satisfy the core criteria as outlined in the Act. The instrument pertains to the sinter cooler parts applied for by Bluescope Steel Ltd, and it is effective from the date the application was lodged, 7 December 2007. The geographic scope of this legislation is national, as it operates under the federal framework of Australian customs law. The Act does not specify exclusions or exemptions other than those detailed in section 269SJ, which lists goods that cannot be subject to a tariff concession order. The CEO's decision to grant a tariff concession is final, and once made, it applies retroactively to the date of the application, provided it meets all stipulated conditions.
Key Provisions
The main operative sections of this Tariff Concession Order, under the Customs Act 1901, establish a framework for tariff concessions on specified goods. Specifically, section 269F outlines the process for applying for a Tariff Concession Order (TCO), while section 269C sets out the core criteria that must be met for an application to be approved. Section 269P(3) mandates that if these criteria are satisfied, the Chief Executive Officer of Customs (CEO) must issue a TCO. In this case, TCO No. 0720931 was made on 29 February 2008, and it declares that certain sinter cooler parts are subject to a reduced customs duty rate of free, as opposed to the general rate of 5% (section 269P(3) and Schedule 4 to the Customs Tariff Act 1995).
The Act imposes several obligations on the parties involved. For example, applicants for a TCO must ensure their application meets the core criteria, specifically that no substitutable goods are produced in Australia (section 269C). The CEO, on the other hand, is required to make a written order if the application meets these criteria and must publish a notice in the Gazette inviting submissions from any interested parties (subsection 269K(1)). Additionally, section 269S(1) stipulates that a TCO is deemed to come into force on the day the application is lodged.
Failure to comply with the provisions of the Customs Act 1901 and the associated regulations can lead to various penalties and consequences. For instance, if an entity knowingly or recklessly provides false or misleading information in an application for a TCO, they may face criminal charges under section 270 of the Act, which carries a maximum penalty of 2,000 penalty units or imprisonment for five years, or both. Additionally, any person who contravenes a TCO or fails to comply with the Act's provisions may be subject to civil penalties, including fines of up to 10,000 penalty units as stipulated in section 273 of the Act. These penalties underscore the importance of adherence to the legislative requirements.