EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0807302
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.
Woodside Energy Ltd applied for a TCO in respect of certain nickel alloy steel plates or sheets on 09 May 2008.
Instrument
TCO No 0807302 was made on 08 August 2008. It declares that those certain nickel alloy steel plates or sheets 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. 0807302 is taken to have come into force on 09 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 Instrument No. 0807302, made under the Customs Act 1901, was enacted to address the issue of tariff concessions for specific goods, in this case, certain nickel alloy steel plates or sheets. This instrument was developed to facilitate the reduction of customs duty on these particular goods, thereby encouraging their import by providing financial relief. The Customs Act 1901, enacted by the Australian Parliament, provides a legislative framework for the administration of customs and excise duties, and includes provisions for tariff concessions. The policy objective of this specific instrument is to ensure that the importation of these goods is facilitated by reducing the duty rate, in line with the broader aims of the Customs Act to regulate and promote trade. The instrument was created following an application by Woodside Energy Ltd, and it came into effect on the date the application was lodged, 09 May 2008, with no submissions received against the application.
Scope and Application
The Customs Act 1901, through the Tariff Concession Instrument No. 0807302, applies to any person or entity that applies for a Tariff Concession Order (TCO) for goods not specified in section 269SJ of the Act, which excludes certain goods from being subject to a TCO. The Act mandates that the Chief Executive Officer of Customs (CEO) must consider whether an application meets the core criteria specified under sections 269C, 269D, and 269E, which require that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. This instrument specifically pertains to certain nickel alloy steel plates or sheets for which Woodside Energy Ltd applied for tariff concessions, and it was effective from 9 May 2008. The CEO's decision to grant the TCO, effective from the date of application, resulted in these particular goods being subject to a zero rate of duty as opposed to the general rate of 5%. The instrument does not affect any pre-existing rights or impose any liabilities on persons other than the Commonwealth.
Key Provisions
The main operative sections of Tariff Concession Instrument No. 0807302 (TCO No. 0807302) under the Customs Act 1901 (section 269F) establish the framework for applying for a Tariff Concession Order (TCO). If a person applies for a TCO for certain goods and the Chief Executive Officer of Customs (CEO) is satisfied that the application is valid and does not pertain to goods specified in section 269SJ, they must then assess if the application meets the core criteria (section 269C). The CEO must make a written TCO if no substitutable goods are produced in Australia in the ordinary course of business on the day the application was lodged (section 269P(3)).
The Act imposes several obligations on the parties involved. The CEO must review the application to ensure it meets the core criteria and consider any submissions from the public before making a decision (section 269K(1)). Once a TCO is made, it comes into effect on the date the application was lodged (subsection 269S(1)). The TCO ensures that the rights of importers are positively affected, and they can apply for a refund of duty on goods imported since the TCO’s effective date (paragraph 126(1)(r) of the Regulations). The TCO also ensures that no person (other than the Commonwealth) is disadvantaged or imposed with new liabilities due to the TCO's implementation.
Any breach of the provisions outlined in the Customs Act 1901 can result in various consequences. While the explanatory statement does not detail specific penalties, breaches of customs laws generally can lead to civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach. The maximum penalties for customs-related offences can vary, but they can include substantial fines and imprisonment terms that reflect the seriousness of the offence. The exact penalties would be determined in the context of the specific breach and under the relevant sections of the Customs Act 1901.