EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0804838
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.
DCK Australia Pty Ltd applied for a TCO in respect of certain imitation jewellery on 11 April 2008.
Instrument
TCO No 0804838 was made on 4 July 2008. It declares that those certain imitation jewellery 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. 0804838 is taken to have come into force on 11 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 Customs Act 1901 was enacted by the Parliament of Australia to regulate customs and excise duties and administer associated compliance matters. A significant component of this legislation is Part XVA, which establishes a framework for Tariff Concession Orders (TCOs) that the Chief Executive Officer of Customs can issue to provide tariff concessions on specific goods. Enacted to address the gap in providing tariff relief for imported goods where no substitutable Australian-made products exist, this mechanism ensures that industries can access necessary imports without the burden of high customs duties. The policy objective behind this legislation is to promote fair competition and economic efficiency by allowing for tariff reductions where appropriate, facilitating the import of goods that are not domestically produced. The instrument, Tariff Concession Instrument No. 0804838, exemplifies this by reducing the duty on certain imitation jewellery to zero, reflecting the absence of substitutable Australian-made products in the market.
Scope and Application
The Tariff Concession Instrument No. 0804838 under the Customs Act 1901 applies to any person or entity that imports certain imitation jewellery into Australia. This Act is applicable on a Commonwealth level and operates within the framework of the Customs Tariff Act 1995. The instrument provides for a tariff concession, effectively granting a tariff reduction from the general rate of 5% to free duty for the specified imitation jewellery. This concession applies to goods imported from the date the application for the tariff concession was lodged, which is 11 April 2008. The instrument does not affect the rights of any person, except for the Commonwealth, in a manner that would disadvantage them or impose liabilities for actions taken before the date of registration. The instrument was made effective as of the date the application was lodged and does not impose any liabilities on any person.
Key Provisions
The Tariff Concession Instrument No. 0804838 under the Customs Act 1901 provides specific concessions for certain imitation jewellery (section 269F). Under this instrument, the Chief Executive Officer of Customs (CEO) has made an order (section 269P) that the specified imitation jewellery are subject to a concession, meaning the general customs duty of 5% is reduced to free duty (section 269P(3)). This applies from the date the application was lodged, 11 April 2008 (subsection 269S(1)).
The Act imposes certain obligations on applicants and the CEO. An applicant must submit a valid application for a Tariff Concession Order (TCO) to the CEO (section 269F). The CEO must then determine if the application meets the core criteria, which includes verifying that no substitutable goods are produced in Australia (section 269C). If the CEO is satisfied, they must make a written TCO order (section 269P(3)). Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any interested parties who may object to the TCO (subsection 269K(1)).
The legislation does not explicitly state any specific offences or penalties for breaches related to TCO applications or the concession itself. However, any breach of the Customs Act 1901 or associated regulations could result in civil or criminal penalties as outlined in other sections of the Act or relevant regulations. These penalties could include fines and imprisonment, depending on the nature and severity of the breach. It is essential to refer to the broader provisions of the Customs Act and associated regulations for detailed information on penalties.