EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0810893
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.
Crane Hire Trust applied for a TCO in respect of certain modular platform trailers on 30 May 2008.
Instrument
TCO No 0810893 was made on 15 August 2008. It declares that those certain modular platform trailers 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. 0810893 is taken to have come into force on 30 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, enacted by the Australian Parliament, establishes a framework for the administration of customs and excise duties in Australia. Part XVA of the Act facilitates the implementation of Tariff Concession Orders (TCOs) which reduce customs duty on specified goods under certain conditions. Specifically, section 269F allows for applications to the Chief Executive Officer of Customs for TCOs, provided the goods in question are not excluded by section 269SJ and meet the core criteria outlined in section 269C. This mechanism aims to ensure that Australian consumers and businesses can access imported goods at a lower duty rate when no suitable domestic alternatives exist, thereby promoting competition and potentially lowering prices.
In response to an application by Crane Hire Trust, Tariff Concession Order No. 0810893 was enacted on 15 August 2008. This order applies to certain modular platform trailers, declaring them subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, effectively reducing their duty rate from 5% to free. The decision to grant the TCO was based on the determination that no substitutable goods were produced in Australia at the time of the application. The order was published in the Gazette, inviting any objections, none of which were received. Consequently, the TCO came into effect on 30 May 2008, the date the application was lodged, benefiting importers by potentially entitling them to duty refunds for goods imported since that date, without imposing any new liabilities.
Scope and Application
The Tariff Concession Instrument No. 0810893 applies to any person who has made an application for a Tariff Concession Order (TCO) under the Customs Act 1901 for specific modular platform trailers, as demonstrated by the case of Crane Hire Trust. This Act primarily concerns the regulation of customs duties and the facilitation of trade by potentially reducing the duty on certain imported goods. The geographic reach of this Act is national, applying across Australia, as it falls under the Commonwealth jurisdiction. The application of a TCO is contingent upon the Chief Executive Officer of Customs being satisfied that no substitutable goods are produced in Australia and that the application meets the core criteria set out in the Act. There are exclusions, such as goods specified in section 269SJ of the Act, which cannot be subject to a TCO. The application of this Act can be extended or restricted through subordinate instruments, allowing for the detailed regulation of which goods may qualify for tariff concessions and under what conditions.
Key Provisions
The Tariff Concession Instrument No. 0810893 under the Customs Act 1901 introduces a tariff concession for certain modular platform trailers (section 269C, 269F, and 269P). This concession applies a zero rate of customs duty on these goods, which contrasts with the general rate of 5% (section 269P(3)). To qualify for this concession, it is necessary for the Chief Executive Officer of Customs (CEO) to be satisfied that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged (section 269C). Additionally, the goods must not be of the type specified in section 269SJ of the Act, which lists those goods that cannot be subject to a tariff concession order (section 269SJ).
The obligations imposed by this legislation include the requirement for applicants to ensure their submissions meet the core criteria as outlined in section 269C. Specifically, the CEO must make a written order, known as a Tariff Concession Order (TCO), if satisfied that the application meets these criteria (section 269P(3)). Furthermore, the CEO is mandated to publish a notice in the Gazette inviting any interested party to lodge a submission if they believe there are reasons why the TCO should not be made (subsection 269K(1)). In the case of TCO No. 0810893, no submissions were received in response to the published notice.
Breaching the provisions of the Customs Act 1901 can lead to significant consequences. Although the specific penalties are not detailed in the explanatory statement, the Act generally provides for both civil and criminal penalties for non-compliance. These penalties can include fines, imprisonment, or both, depending on the severity and nature of the breach. The exact penalties would be in accordance with the relevant sections of the Customs Act and any associated regulations.