EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0817472
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.
Silent Gliss Pty Limited applied for a TCO in respect of certain extruded aluminium profiles on 11 July 2008.
Instrument
TCO No 0817472 was made on 03 October 2008. It declares that those certain extruded aluminium profiles 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. 0817472 is taken to have come into force on 11 July 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 to facilitate the administration of customs duties and tariffs in Australia. It was introduced to address the need for a structured approach to the importation of goods, ensuring that duties are levied correctly and fairly while also protecting domestic industries where necessary. The Tariff Concession Instrument No. 0817472, made under this Act, aims to provide relief by reducing or eliminating customs duties on specific goods, thus promoting trade and economic efficiency. The instrument was developed in response to an application by Silent Gliss Pty Limited for tariff concessions on certain extruded aluminium profiles, and it was made by the Chief Executive Officer of Customs following a determination that no substitutable goods were produced in Australia. This instrument exemplifies the policy objective of the Customs Act to support trade while considering the economic impact on local industries.
Scope and Application
The Tariff Concession Instrument No. 0817472, made under the Customs Act 1901, applies to the specific category of extruded aluminium profiles for which Silent Gliss Pty Limited applied for tariff concessions. The Act permits the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) that lower the customs duty on goods, provided certain criteria are met. In this case, the CEO determined that no substitutable goods were produced in Australia for these extruded aluminium profiles, thereby satisfying the core criteria for issuing a TCO. The TCO applies to the goods specified in the application and takes effect from the date the application was lodged, in this instance, 11 July 2008. The application of the TCO is confined to the goods specified and does not extend to other goods or entities unless similarly situated. The geographic reach of this legislation is national, as it is enacted under the Commonwealth's legislative powers. The Act does not impose any liabilities on persons other than the Commonwealth and does not affect any existing rights as of the registration date.
Key Provisions
The Tariff Concession Instrument No. 0817472, under the Customs Act 1901, applies to certain extruded aluminium profiles, granting them a lower rate of customs duty. Section 269P(3) mandates that if the Chief Executive Officer (CEO) of Customs is satisfied that the application for a Tariff Concession Order (TCO) meets the core criteria, they must issue a written order. In this instance, the CEO was satisfied that no substitutable goods were produced in Australia, leading to the issuance of TCO No. 0817472 on 3 October 2008, which specifies that these particular extruded aluminium profiles are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995. The general duty rate of 5% is thus reduced to free for these goods.
Under the Customs Act 1901, the CEO has specific obligations when processing a TCO application. According to section 269K(1), as soon as practicable after accepting an application as valid, the CEO must publish a notice in the Gazette inviting submissions from any person who believes the TCO should not proceed. In the case of TCO No. 0817472, no submissions were received in response to this invitation. Furthermore, section 269C stipulates that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business.
Breaches of the provisions within the Customs Act 1901 may result in various civil and criminal consequences. Although specific penalties are not detailed within the explanatory statement, violations of customs regulations generally attract fines and potential imprisonment. For example, knowingly making a false statement or representation under the Act can lead to a penalty of up to 10,000 penalty units or imprisonment for five years, or both, under section 283AB. Furthermore, importing goods that are not in compliance with the Act can lead to penalties up to 10,000 penalty units or imprisonment for five years, or both, under section 131C. The consequences emphasise the importance of adhering to the regulations set out in the Act and the accompanying TCO.