EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0813346
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.
Power Imports and Distribution Pty Ltd applied for a TCO in respect of certain bleached paper on 18 June 2008.
Instrument
TCO No 0813346 was made on 17 October 2008. It declares that those certain bleached paper 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. 0813346 is taken to have come into force on 18 June 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 Parliament of Australia, provides a framework for the regulation of imports and exports through the imposition of customs duties. One particular feature of this Act is the ability to issue Tariff Concession Orders (TCOs) which can lower the duty rates on certain goods. The Tariff Concession Instrument No. 0813346 was introduced to address the issue of applying for tariff concessions on specific goods, in this instance, certain bleached paper. The instrument was enacted to ensure that the application process aligns with the core criteria set out in the Customs Act 1901, particularly ensuring that no substitutable goods are produced in Australia. The policy objective of this instrument is to facilitate smoother trade and economic benefits by reducing the duty rates on specific goods, thus encouraging imports and benefiting importers who can apply for duty refunds on previously imported goods.
Scope and Application
The Tariff Concession Instrument No. 0813346, made under the Customs Act 1901, applies to the concession of customs duty for certain bleached paper as specified in the instrument. The Act primarily applies to entities or individuals seeking tariff concessions for imported goods, particularly in cases where substitutable goods are not produced in Australia in the ordinary course of business. The geographic reach of this legislation is national, as it pertains to the Australian customs regime, affecting importers across the country. Exclusions are specified in section 269SJ of the Act, which lists goods that cannot be subject to a tariff concession order (TCO). The application process involves the Chief Executive Officer of Customs determining whether an application meets core criteria, as outlined in sections 269C, 269B, and 269D of the Act. The instrument itself, TCO No. 0813346, came into effect on the date the application was lodged, which was 18 June 2008. The TCO does not impose any liabilities on persons other than the Commonwealth and does not disadvantage any person's rights as at the date of registration.
Key Provisions
The primary sections of the Tariff Concession Instrument No. 0813346, as referenced in the Customs Act 1901, outline the conditions under which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO) (sections 269C, 269F, 269P(3)). Specifically, section 269F allows a person to apply for a TCO in respect of goods if the CEO is satisfied that the goods do not fall under the exclusions listed in section 269SJ. If the CEO is convinced that the application meets the core criteria, such as the absence of substitutable goods produced in Australia on the application day (section 269C), a TCO will be issued. This order, as stated in section 269P(3), will then specify a lower rate of customs duty applicable to the goods in question, as prescribed in Schedule 4 of the Customs Tariff Act 1995.
The obligations imposed by the Act on the parties include the requirement for applicants to ensure their goods meet the eligibility criteria for a TCO, particularly that no substitutable goods are being produced in Australia on the day of application. The CEO, on the other hand, must rigorously evaluate each application to determine if it meets the core criteria, including the publication of notices in the Gazette inviting objections or submissions from interested parties, and making a decision based on the evidence and submissions received (subsection 269K(1)). Additionally, the CEO must issue the TCO if the application satisfies all stipulated conditions.
In terms of breaches and consequences, the Act does not explicitly outline specific offences, penalties, or consequences for non-compliance with the provisions of a TCO. However, general provisions within the Customs Act 1901 and related regulations may apply to ensure compliance. Any failure to adhere to the terms of the TCO could potentially lead to the imposition of duties at the standard rate, or other administrative actions as prescribed by the Act. The TCO itself does not impose any liabilities on any person and protects the rights of importers by allowing them to apply for a refund of duty on goods imported since the TCO came into effect (paragraph 126(1)(r) of the Regulations).