EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0806260
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.
CSR Building Products Limited applied for a TCO in respect of certain roof tiles turnstiles on 1 May 2008.
Instrument
TCO No 0806260 was made on 11 July 2008. It declares that those certain roof tiles turnstiles 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. 0806260 is taken to have come into force on 1 May 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 Order No. 0806260, made under the Customs Act 1901, was introduced to address the issue of providing tariff concessions for certain imported goods. Enacted by the Parliament of Australia, this legislation aims to facilitate trade by reducing customs duties on specific goods, in this case, certain roof tiles turnstiles, provided that no substitutable goods are produced in Australia. The policy objective is to ensure that Australian importers benefit from reduced duty rates, thereby making imported goods more competitive in the local market. The instrument was made on 11 July 2008 and came into force on 1 May 2008, the date the application was lodged. Importantly, the Tariff Concession Order does not disadvantage any person or impose liabilities on anyone for actions taken prior to its enactment.
Scope and Application
The Tariff Concession Instrument No. 0806260 is an instrument made under the Customs Act 1901 and applies to any person or entity that seeks to import goods specified in the instrument, which in this case are certain roof tiles turnstiles. The application of the Act is federal in nature, applying across Australia and is administered by the Chief Executive Officer of Customs. The instrument grants a tariff concession, reducing the duty on the specified goods from the general rate of 5% to free, provided that the applicant meets the core criteria specified in section 269C of the Act. This means that the goods must not have substitutable alternatives produced in Australia on the date the application was lodged. The Act also mandates that the CEO must publish a notice in the Gazette to invite submissions from any interested parties; however, in this instance, no submissions were received. The instrument extends its effect retroactively to the date the application was lodged, meaning that importers can apply for a refund of duty paid on the specified goods imported since 1 May 2008, the date the application was lodged.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0806260, made under the Customs Act 1901, concern the declaration of tariff concession orders (TCOs) for specific goods. According to section 269F of the Act, an application for a TCO can be made by any person to the Chief Executive Officer (CEO) of Customs. If the CEO is satisfied that the application pertains to goods not excluded by section 269SJ, and the application meets the core criteria as outlined in section 269C, the CEO is required to make a written TCO. The instrument itself, TCO No. 0806260, declares that certain roof tiles turnstiles are subject to a tariff concession, with the rate of duty being free, as opposed to the general rate of 5% (Schedule 4, item 50 of the Customs Tariff Act 1995).
The obligations imposed by the Act on the parties involved include the requirement for the CEO to assess applications for TCOs against the criteria specified in section 269C. This involves determining whether no substitutable goods were produced in Australia on the day the application was lodged. The CEO must also ensure that a notice inviting submissions is published in the Gazette as soon as practicable after accepting a valid TCO application, as per subsection 269K(1). Additionally, the CEO must consider any submissions received and make a decision on whether to proceed with the TCO. In this case, the CEO made TCO No. 0806260 on 11 July 2008, after satisfying themselves that no substitutable goods were produced in Australia and no submissions were received opposing the concession.
The Act also outlines consequences for breaches of its provisions. While the explanatory statement does not specify offences or penalties directly related to the making of TCOs, the general framework of the Customs Act 1901 includes provisions for penalties for non-compliance with customs regulations. For instance, section 234D of the Act provides for criminal penalties, including fines and imprisonment, for offences related to the importation of goods. However, in the specific context of TCOs, the primary consequence of a breach would be the invalidity of the TCO itself, potentially leading to the reapplication of the general duty rates to the goods in question.
In summary, Tariff Concession Instrument No. 0806260 facilitates a tariff concession for certain roof tiles turnstiles, contingent upon meeting the core criteria as defined by the Customs Act 1901. The CEO of Customs has the responsibility of assessing applications and ensuring the criteria are met before issuing a TCO. The rights of importers are protected under the Act, with potential benefits such as duty refunds for goods imported since the TCO came into effect. While specific penalties for breaches of TCO provisions are not detailed, general penalties for customs non-compliance apply under the broader framework of the Act.