EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0815260
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.
Robert Bosch Pty Ltd applied for a TCO in respect of certain dc motors 12 volt on 30 June 2008.
Instrument
TCO No 0815260 was made on 19 September 2008. It declares that those certain dc motors 12 volt 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. 0815260 is taken to have come into force on 30 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 was enacted by the Parliament of Australia and provides the legal framework for the regulation of customs and excise in Australia. The Act was introduced to address the need for a comprehensive and effective system to control the importation and exportation of goods, ensuring compliance with national and international trade laws. One of the mechanisms within the Customs Act is the Tariff Concession Orders (TCO) scheme, which allows the Chief Executive Officer of Customs to provide tariff concessions on certain goods. This scheme aims to support Australian industries by reducing the customs duty on specified goods, provided that no substitutable goods are produced in Australia. The Explanatory Statement for Tariff Concession Instrument No. 0815260, made under this Act, clarifies the process and criteria for making TCOs, ensuring transparency and fairness in the application process. The policy objective of this legislative measure is to facilitate the import of goods that are not domestically produced, thereby supporting the competitive landscape of Australian industries and encouraging economic growth.
Scope and Application
The Tariff Concession Instrument No. 0815260, made under the Customs Act 1901, applies to individuals or entities seeking tariff concessions for specific goods, in this case certain DC motors 12 volt. The Act allows the Chief Executive Officer of Customs to make Tariff Concession Orders that provide a lower rate of customs duty for goods specified in the order. The application of this legislation is national, operating within the Commonwealth of Australia, and it does not discriminate between states or territories. The scope of the Act is limited to goods that are not specified in section 269SJ of the Act, which excludes certain items from being subject to a Tariff Concession Order. Moreover, the application must meet the core criteria as outlined in sections 269C and 269P of the Act, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The Instrument was made on 19 September 2008, and it came into force on 30 June 2008, the date the application was lodged. Notably, this Instrument does not impose any liabilities on any person and does not disadvantage any person other than the Commonwealth.
Key Provisions
The main operative sections of the Tariff Concession Instrument No. 0815260 under the Customs Act 1901 (section 269C) and Customs Tariff Act 1995 (section 269P) allow for the application and granting of Tariff Concession Orders (TCOs) for specific goods, such as the dc motors 12 volt in this case. If an application is made and the Chief Executive Officer of Customs (CEO) is satisfied that the application meets the core criteria, which includes verifying that no substitutable goods are produced in Australia, a TCO can be made (section 269P(3)). This TCO allows for a lower rate of customs duty to apply to the specified goods, in this case resulting in a rate of zero duty for the dc motors 12 volt.
The Act imposes certain obligations on the parties involved. Firstly, section 269K(1) requires the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid. This notice includes an invitation for any person to lodge a submission with the CEO if they believe there are reasons why the TCO should not be made. In this instance, no submissions were received. Additionally, section 269S(1) specifies that a TCO is to be taken as coming into force on the day the application was lodged, ensuring that any benefits of the concession are applied retroactively from that date.
Failure to comply with the requirements set out in the Customs Act 1901 could result in various consequences. While specific offences and penalties are not detailed in the explanatory statement, the Act generally provides for both civil and criminal penalties for breaches, including fines and imprisonment, depending on the severity and nature of the breach. The maximum penalties for contraventions of the Customs Act can vary, but they often include significant financial penalties and potential imprisonment for serious or repeated offences.
In summary, the Tariff Concession Instrument No. 0815260 facilitates the reduction of customs duty for specific goods, provided certain criteria are met. The obligations under the Act include the requirement for the CEO to publish a notice of the application and allow for public submissions. While the explanatory statement does not detail specific penalties, general provisions of the Customs Act 1901 provide for both civil and criminal consequences for non-compliance, including fines and imprisonment for serious breaches.