EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0806361
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.
Bluescope Steel Pty Ltd applied for a TCO in respect of certain sinter pallet car strand feeder on 02 May 2008.
Instrument
TCO No 0806361 was made on 18 July 2008. It declares that those certain sinter pallet car strand feeders 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. 0806361 is taken to have come into force on 02 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 Customs Act 1901 was amended with the introduction of the Customs (Tariff Concession) Order No. 0806361, enacted in 2008. This legislation was developed to address the need for tariff concessions on specific imported goods, in this instance certain sinter pallet car strand feeders, where no substitutable goods are produced in Australia. The instrument was enacted by the Parliament of Australia and aims to provide relief from customs duties for imported goods where there is no domestic production of equivalent goods. This facilitates fairer competition and potentially lower costs for businesses importing these specific goods. The Customs (Tariff Concession) Order No. 0806361 was made under the authority of the Chief Executive Officer of Customs, who determined that the application by Bluescope Steel Pty Ltd met the core criteria, resulting in a tariff concession that exempts these goods from the general duty rate of 5%, effectively setting it to free.
Scope and Application
The Customs Act 1901, specifically Part XVA, establishes the framework for Tariff Concession Orders (TCOs) that can be issued by the Chief Executive Officer of Customs (CEO). This legislation applies to any person or entity that seeks to apply for a TCO in respect of goods, provided the goods are not specified in section 269SJ of the Act as those that cannot be subject to a TCO. The CEO assesses applications to ensure that the goods in question are not substitutable by any goods produced in Australia in the ordinary course of business, as defined by sections 269D, 269E and 269F. If the CEO determines that the application meets the core criteria, they must make a written order granting the tariff concession. The geographic reach of the Act is national, with the CEO's decisions affecting all entities within Australia. The Act does not specify exclusions or exemptions beyond those listed in section 269SJ, and the scope of the TCO is limited to the goods specified in the order. The commencement of a TCO is effective from the date the application is lodged, and it does not disadvantage any person or impose liabilities on anyone in respect of actions taken prior to the order's registration.
Key Provisions
The main provisions of Tariff Concession Instrument No. 0806361, under the Customs Act 1901 (sections 269C, 269F, and 269P), concern the process and criteria for granting Tariff Concession Orders (TCOs). Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods. If the CEO is satisfied that the application meets the core criteria set out in section 269C, they must make a written order declaring that the goods are subject to a prescribed rate of duty specified in the Customs Tariff Act 1995. For this TCO, the CEO was satisfied that no substitutable goods were produced in Australia, hence the application met the core criteria and the TCO was granted, making the rate of duty on certain sinter pallet car strand feeders free, down from 5%.
The obligations imposed by the Act on the CEO include considering applications for TCOs and deciding whether they meet the core criteria. This involves assessing whether the goods are not substitutable by any goods produced in Australia. The CEO must also publish a notice in the Gazette inviting submissions from any interested parties once a TCO application is accepted as valid. For this particular TCO, no submissions were received, indicating public acceptance or lack of objection to the concession.
There are no specific offences or penalties outlined in the Act regarding the TCO process itself. However, any breach of the Customs Act 1901 or related regulations could result in civil or criminal penalties. For instance, false statements or fraudulent claims regarding the goods or the circumstances of the application could lead to fines or imprisonment. The exact penalties would depend on the nature and severity of the breach, as outlined in the relevant sections of the Customs Act 1901 and associated regulations. It is essential for all parties to comply with the legislative requirements to avoid any legal repercussions.