EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0824629
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.
Alko International applied for a TCO in respect of certain trailer or caravan stablisers on 04 August 2008.
Instrument
TCO No 0824629 was made on 17 October 2008. It declares that those certain trailer or caravan stablisers 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 10%. 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. 0824629 is taken to have come into force on 04 August 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 Tariff Concession Instrument No. 0824629, made under the Customs Act 1901, was enacted in 2008 to address the need for tariff concessions for specific imported goods that do not have substitutable Australian-made alternatives. This legislation was developed to facilitate smoother import processes and reduce financial burdens on businesses importing these goods, thereby encouraging trade and economic efficiency. The instrument was created by the Chief Executive Officer of Customs, who has the authority to make such orders as provided under section 269F of the Act. The policy objective of this instrument is to provide relief to importers by granting them a tariff concession that effectively reduces the customs duty on certain trailer or caravan stabilisers from 10% to free, effective from the date the application was lodged, which is 4 August 2008.
Scope and Application
The Tariff Concession Instrument No. 0824629 under the Customs Act 1901 applies to specific goods, in this instance certain trailer or caravan stabilisers, and is directed at individuals or entities seeking tariff concessions on these goods. The Act allows the Chief Executive Officer of Customs to grant Tariff Concession Orders (TCO) which provide for a lower rate of customs duty on specified goods. The instrument extends to the entire Commonwealth of Australia and is applicable to anyone who imports the specified goods. The application of the Act is contingent upon meeting the core criteria, particularly that no substitutable goods are produced in Australia in the ordinary course of business. The Act also outlines that certain goods, as specified in section 269SJ, are ineligible for a TCO. Subordinate instruments may further define the application and criteria for TCOs, although no such instruments are mentioned in this context. The commencement of this particular TCO aligns with the date of the application, ensuring that the rights of importers are positively impacted from the date of application, while safeguarding the rights of any person from any disadvantage or liabilities incurred prior to the TCO's registration.
Key Provisions
The Tariff Concession Instrument No. 0824629 is a regulation made under section 269P of the Customs Act 1901 (the Act) that provides a tariff concession for certain trailer or caravan stabilizers. This regulation applies a free rate of customs duty on these goods, reducing the previously applicable 10% duty rate. The instrument was made on 17 October 2008 and is effective as of 4 August 2008, the date on which the application was lodged.
The obligations imposed by this regulation primarily concern the Chief Executive Officer (CEO) of Customs, who must assess applications for tariff concession orders (TCO) under section 269F. If the CEO is satisfied that the application meets the core criteria set out in sections 269C and 269D, they must make a written TCO. Section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions on the application as soon as practicable after accepting it as valid. In this case, no submissions were received, leading to the issuance of the TCO.
The TCO itself does not impose any liabilities on any person and does not affect the rights of persons as at the date of registration to disadvantage them or impose liabilities for actions taken prior to the registration date. Importers of the goods affected by the TCO can apply for a refund of duty on goods imported since the TCO came into effect, under paragraph 126(1)(r) of the Regulations.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the explanatory statement for breach of this TCO. However, general provisions under the Customs Act 1901 and related regulations would apply for non-compliance with customs duties and related obligations. These could include fines and imprisonment for serious breaches, as outlined in various sections of the Customs Act and other relevant legislation.