EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0804284
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.
Pipemakers applied for a TCO in respect of certain polyvinyl chloride compounding plant on 14 April 2008.
Instrument
TCO No 0804284 was made on 4 July 2008. It declares that those certain polyvinyl chloride compounding plant 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. 0804284 is taken to have come into force on 14 April 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. 0804284 was enacted in 2008 under the Customs Act 1901 to address the issue of tariff concessions for specific goods. This legislative instrument was introduced to facilitate the application process for Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, allowing for a lower rate of customs duty on certain goods if they meet specific criteria. The Customs Act 1901, enacted by the Australian Parliament, provides the legal framework for customs duties and tariff concessions. The policy objective is to support industries by ensuring they have access to necessary goods at a reduced duty rate when domestic alternatives are not available. In this instance, Pipemakers successfully applied for a TCO for certain polyvinyl chloride compounding plant, resulting in a concession that lowered the duty rate from the general 5% to free. The instrument took effect from the date of the application, 14 April 2008, without imposing any liabilities or disadvantaging any parties.
Scope and Application
The Tariff Concession Instrument No. 0804284, enacted under Part XVA of the Customs Act 1901, applies to any person or entity seeking a tariff concession order (TCO) for specific goods from the Chief Executive Officer of Customs. This legislation is applicable to the importation of polyvinyl chloride compounding plant, which falls under item 50 of Schedule 4 to the Customs Tariff Act 1995. The TCO applies nationally within Australia, impacting the importation process by providing a concessional rate of customs duty, effectively reducing it to zero for the specified goods. The Act ensures that the application of the TCO does not adversely affect any existing rights of individuals or entities, except for the Commonwealth, with respect to actions taken prior to the registration of the TCO. Importantly, this legislation does not extend to goods listed in section 269SJ of the Customs Act 1901, which are explicitly excluded from tariff concessions. The implementation of the TCO is further governed by the Customs Regulations 1993, which outline the process for duty refunds for importers of the specified goods since the TCO’s effective date.
Key Provisions
The Tariff Concession Instrument No. 0804284 under the Customs Act 1901, as explained in the accompanying explanatory statement, provides significant tariff concessions for certain goods. The primary operative sections of this legislation are sections 269C, 269F, and 269P. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO), while section 269C outlines the core criteria that the CEO must be satisfied with to approve such an application. If the CEO determines that the application meets these core criteria, section 269P mandates that the CEO must issue a written TCO, specifying the applicable tariff item from Schedule 4 of the Customs Tariff Act 1995.
The Act imposes certain obligations on the parties involved. For instance, the CEO is required to ensure that the application for a TCO is valid and meets the core criteria as stipulated in section 269C. Additionally, section 269K(1) mandates that the CEO must publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made. Although no submissions were received in response to the notice for TCO No. 0804284, the requirement to publish and invite submissions ensures a level of transparency and opportunity for public input.
The consequences for non-compliance or breaches of the conditions set out in the Customs Act 1901 and its related regulations are significant. Although the explanatory statement does not explicitly detail offences or penalties, it is reasonable to infer that breaches of the tariff concession provisions might result in legal consequences under the Act. Typically, such breaches could lead to the imposition of fines or other penalties as prescribed by the Customs Act and associated regulations. While the specific maximum penalties are not mentioned in the explanatory statement, they would generally align with the penalties for non-compliance with other provisions of the Customs Act.