EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0815096
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.
Onesteel Manufacturing Pty Limited applied for a TCO in respect of certain continuous cast square steel billets on 27 June 2008.
Instrument
TCO No 0815096 was made on 19 September 2008. It declares that those certain continuous cast square steel billets 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. 0815096 is taken to have come into force on 27 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 Australian Parliament, provides a framework for the regulation of customs and excise within Australia. This Act was introduced to address the need for streamlined and efficient customs processes, allowing for the imposition of duties on imported goods while facilitating trade. Specifically, the Act establishes the conditions under which Tariff Concession Orders (TCOs) may be issued, providing relief from certain customs duties under specific circumstances. Instrument No. 0815096 was made under this Act on 19 September 2008, providing a tariff concession for certain continuous cast square steel billets, as applied for by Onesteel Manufacturing Pty Limited on 27 June 2008. This concession was granted as the Chief Executive Officer of Customs was satisfied that no substitutable goods were produced in Australia, thus meeting the core criteria set out in the Act. The instrument aims to provide a policy objective of facilitating trade by reducing duty burdens on specific imported goods.
Scope and Application
The Tariff Concession Instrument No. 0815096, under the Customs Act 1901, applies to the specific case of certain continuous cast square steel billets, which are subject to a Tariff Concession Order (TCO). This instrument is pertinent to Onesteel Manufacturing Pty Limited, the entity that applied for the concession. The scope of this Act is limited to the goods specified in the application, which in this instance are the continuous cast square steel billets. The instrument does not extend to other entities or goods unless explicitly included in a subsequent application and approval process. The application of this Act is governed by the Commonwealth, ensuring a uniform approach across Australia.
The geographical application of this legislation is national, affecting all importers of the specified steel billets within Australia. The TCO provides a tariff concession, setting the duty rate at free, in contrast to the general rate of 5%. This Act does not include any stated exclusions or exemptions beyond the specific goods outlined in the TCO. However, the Act's application may be further refined or extended through subordinate instruments, allowing for adjustments or additional specifications as needed. Importantly, the TCO does not disadvantage any person or impose liabilities for actions taken before its registration, ensuring that only future transactions benefit from the tariff concession.
Key Provisions
The Customs Act 1901, under Part XVA, outlines the process for issuing Tariff Concession Orders (TCOs) through the Chief Executive Officer (CEO) of Customs. Section 269F of the Act allows an application to be made to the CEO for a TCO concerning specific goods. The CEO is required to assess whether the application meets the core criteria specified in section 269C, which include the absence of substitutable goods produced in Australia on the day the application was lodged, as defined by section 269D and section 269E. If the application meets these criteria, the CEO must issue a written TCO as per section 269P(3), specifying that the goods are subject to a particular rate of duty outlined in Schedule 4 of the Customs Tariff Act 1995.
The obligations imposed by the Act on parties include the requirement for the CEO to publish a notice in the Gazette after accepting a valid TCO application, inviting any interested parties to submit reasons why the TCO should not be granted. This is mandated by subsection 269K(1) of the Act. Additionally, the CEO must ensure that the TCO does not disadvantage any person or impose liabilities on them in respect of actions taken before the TCO's registration date, as stated in subsection 269S(1). The Act also provides that the TCO will come into force on the day the application was lodged.
In terms of offences, penalties, or consequences, the Act does not specify any criminal penalties for breaches related to TCOs. However, failure to comply with the obligations and requirements outlined by the Act could result in the TCO not being granted or in potential disputes regarding the rights and duties of the parties involved. For example, if a TCO is issued incorrectly, it may be subject to judicial review, and the CEO could face legal challenges regarding the validity of the TCO. Additionally, any person adversely affected by the TCO may seek a refund of duty under the Customs Act 1901, as provided by paragraph 126(1)(r) of the Regulations.