EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0805145
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.
Uranium One Australia Pty Ltd applied for a TCO in respect of certain solvent extraction plant parts on 03 April 2008.
Instrument
TCO No 0805145 was made on 27 June 2008. It declares that those certain solvent extraction plant 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. 0805145 is taken to have come into force on 03 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. 0805145, enacted in 2008 under the Customs Act 1901, was introduced to address the need for tariff concessions on specific goods that were not produced in Australia. The Tariff Concession Orders (TCO) scheme, as outlined in Part XVA of the Act, allows the Chief Executive Officer of Customs to reduce the customs duty on goods that are not substituted by domestic production. The Act was enacted by the Australian Parliament and aims to provide economic benefits by facilitating the import of goods that cannot be locally produced, thereby supporting industries that rely on imported components. In this particular case, Uranium One Australia Pty Ltd applied for a TCO on certain solvent extraction plant parts, which were granted a duty-free status as no substitutable goods were being produced in Australia at the time of application. The instrument came into force on the date of the application, 3 April 2008, and ensures that importers can apply for a refund of duty paid on these goods since that date.
Scope and Application
The Tariff Concession Instrument No. 0805145 under the Customs Act 1901 applies to specific goods, in this case certain solvent extraction plant parts, and pertains to the application of a lower rate of customs duty as determined by a Tariff Concession Order (TCO). This Act is applicable to any person or entity seeking to import these goods into Australia, thus affecting the importation process and the associated customs duties. The geographic reach of this legislation is national, given that it operates within the framework of the Commonwealth’s customs laws. The Act does not specify any exclusions or exemptions beyond those already outlined in section 269SJ, which excludes certain goods from being subject to a TCO. The application of this Act may be extended or restricted through subordinate instruments, although the primary regulation is contained within the Customs Act 1901 itself. The TCO does not disadvantage any person other than the Commonwealth and imposes no liabilities on anyone except the Commonwealth, ensuring that it only beneficially affects the rights of importers who may apply for a refund of duty on the affected goods.
Key Provisions
The Tariff Concession Instrument No. 0805145 under the Customs Act 1901 applies to certain solvent extraction plant parts (section 269C, 269P). The instrument was made on 27 June 2008 by the Chief Executive Officer of Customs (CEO) in response to an application by Uranium One Australia Pty Ltd, dated 3 April 2008. The TCO declares that these specific goods are subject to a prescribed item in Schedule 4 of the Customs Tariff Act 1995, with the rate of duty reduced from 5% to free (subsection 269P(3)). This concession was granted as the CEO determined that no substitutable goods were produced in Australia on the date of the application.
The Act imposes specific obligations on the CEO when considering an application for a Tariff Concession Order (TCO). According to section 269F, the CEO must assess whether the application meets the core criteria, which includes verifying that no substitutable goods were produced in Australia in the ordinary course of business (section 269C). Definitions for key terms such as 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are provided in sections 269D, 269E, and 269B respectively. Once the CEO is satisfied that the application meets these criteria, they are required to make a written order declaring the goods eligible for the tariff concession (subsection 269P(3)).
In addition to these obligations, the Act mandates that the CEO publish a notice in the Gazette inviting any person who believes the TCO should not be granted to submit their reasons (subsection 269K(1)). For TCO No. 0805145, no submissions were received. The TCO is deemed to have come into force on the date the application was lodged, which is 3 April 2008 (subsection 269S(1)). Importantly, the TCO does not affect the rights of any person other than the Commonwealth and does not impose any liabilities on anyone in relation to actions taken before the TCO's effective date.
Failure to comply with the requirements of the Customs Act 1901 may result in legal consequences. However, the explanatory statement does not specify any offences, penalties, or civil or criminal consequences related to the issuance or breach of a TCO. The focus is primarily on the procedural aspects of applying for and granting tariff concessions, ensuring that the process is transparent and allows for public input where necessary.