EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0802512
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.
Manildra Flour Mills Pty Ltd applied for a TCO in respect of certain centrifuge peelers on 18 February 2008.
Instrument
TCO No 0802512 was made on 02 May 2008. It declares that those certain centrifuge peelers 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. 0802512 is taken to have come into force on 18 February 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 Tariff Concession Instrument No. 0802512, enacted in 2008, amends the Customs Act 1901 to address the need for tariff concessions on specific goods that are not produced domestically and for which no suitable substitutes exist. This instrument allows for the application of lower rates of customs duty on certain goods, thereby reducing the financial burden on importers and potentially enhancing the competitiveness of imported goods in the Australian market. The instrument was created under the authority of the Chief Executive Officer of Customs, who must assess applications to ensure they meet the core criteria outlined in the Act, specifically that no substitutable goods are produced in Australia in the ordinary course of business. This legislative action aims to facilitate smoother trade operations and support economic efficiency by providing duty relief where appropriate.
This instrument was introduced by the Parliament of Australia with the policy objective of streamlining customs processes and providing economic benefits through tariff concessions. The Customs Act 1901, as amended, provides a framework for the application and assessment of tariff concession orders, ensuring that such concessions are granted fairly and in accordance with established criteria. The absence of submissions in response to the Gazette notice indicates broad acceptance or lack of opposition to the tariff concession for the specified goods, reflecting either a consensus on the need for the concession or limited stakeholder engagement on the matter.
Scope and Application
The Tariff Concession Instrument No. 0802512 under the Customs Act 1901 applies to entities or individuals who seek tariff concessions on certain goods that are not produced in Australia. Specifically, it relates to the application made by Manildra Flour Mills Pty Ltd for a Tariff Concession Order (TCO) concerning certain centrifuge peelers. This Act applies to the conduct of applying for tariff concessions and the subsequent issuance of such concessions by the Chief Executive Officer of Customs, provided the application meets the core criteria outlined in the Act. The geographic reach of this Act is national, as it pertains to the customs duties and tariffs regulated at the federal level in Australia. The instrument excludes any goods specified in section 269SJ of the Act, which cannot be subject to a TCO. Additionally, the Act allows for the extension or restriction of application through subordinate instruments, ensuring flexibility in its application across various industries and goods. The instrument became effective from 18 February 2008, the date the application was lodged, and does not impose any liabilities on persons other than the Commonwealth.
Key Provisions
The Tariff Concession Order (TCO) No. 0802512, as set out in the Customs Act 1901, establishes a lower rate of customs duty on certain centrifuge peelers. Section 269P(3) of the Act requires the Chief Executive Officer (CEO) of Customs to make this order if they determine that the application meets the core criteria, which includes ensuring that no substitutable goods were produced in Australia on the day the application was lodged (section 269C). This order came into force on 18 February 2008, the date the application was lodged (subsection 269S(1)). The CEO's decision to grant the concession was based on the absence of any submissions opposing the concession, indicating that no other party raised objections to the tariff reduction (subsection 269K(1)).
The obligations imposed by the TCO primarily concern the CEO’s duty to assess the application against the core criteria, including verifying the absence of substitutable goods produced in Australia, as defined in section 269D and 269E of the Act. The CEO must also ensure that the goods in question are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. Additionally, the CEO is required to publish a notice in the Gazette inviting any person who might oppose the TCO to lodge a submission, as per subsection 269K(1) of the Act.
Failure to comply with the provisions of the Customs Act 1901 or the terms of the TCO can result in legal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of the Act or the TCO could lead to civil or criminal consequences under the broader framework of the Customs Act, which may include fines and imprisonment. The specific penalties would depend on the nature and severity of the breach, as outlined in other sections of the Customs Act and related regulations.