EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0825247
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.
Paperlinx Limited applied for a TCO in respect of certain label base paper pigment coated on 06 August 2008.
Instrument
TCO No 0825247 was made on 31 October 2008. It declares that those certain label base paper pigment coated 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. 0825247 is taken to have come into force on 06 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 Customs Act 1901 was enacted to provide a comprehensive regulatory framework for the administration of customs and excise duties in Australia. The Act aims to facilitate international trade by ensuring the efficient collection of duties and taxes while protecting the economic interests of the nation. One significant aspect of the Customs Act is the provision for Tariff Concession Orders (TCOs) under Part XVA, which allows for the application of reduced customs duty rates on certain goods. This legislative instrument, F2009L00414, addresses the gap in the tariff structure by allowing for the exemption of specific goods from the standard duty rates if certain conditions are met. The Tariff Concession Instrument No. 0825247, made by the Chief Executive Officer of Customs, is a practical application of this scheme. The policy objective here is to ensure that businesses importing goods that are not produced domestically are not unduly burdened by high customs duties, thereby promoting competitive and fair trade practices. The instrument was introduced by the relevant legislature to provide clarity and facilitate the application process for tariff concessions.
Scope and Application
The Tariff Concession Instrument No. 0825247, made under the Customs Act 1901, applies specifically to the goods in respect of which Paperlinx Limited submitted an application on 6 August 2008, namely certain label base paper pigment coated. This instrument was created to provide a lower rate of customs duty on these goods, as authorised by the Chief Executive Officer of Customs, who determined that no substitutable goods were produced in Australia on the date the application was lodged. The Act applies to the goods specified in the application and only affects those involved in the importation of such goods, thereby potentially benefiting importers who may apply for duty refunds. The geographic scope of this instrument is national, as it pertains to the Customs Act, which has jurisdiction across Australia. The application of this Tariff Concession Order is not subject to any exclusions or exemptions beyond what is stipulated in section 269SJ of the Act, which excludes certain goods from being subject to a Tariff Concession Order. The instrument itself does not impose any liabilities on any person and does not affect the rights of any person other than the Commonwealth concerning actions taken prior to the registration date of the TCO.
Key Provisions
The Tariff Concession Instrument No. 0825247 primarily focuses on the process and provisions for Tariff Concession Orders (TCOs) under the Customs Act 1901 (section 269F). This instrument was made in response to an application by Paperlinx Limited for a TCO concerning certain label base paper pigment coated. The CEO of Customs has determined that no substitutable goods were produced in Australia, satisfying the core criteria set out in section 269C. As a result, a lower rate of customs duty applies to these goods, with the general rate being 5% and the rate under the TCO being free (section 269P(3)).
Under this legislation, the obligations on the CEO include considering the application for a TCO, ensuring that the application does not pertain to goods specified in section 269SJ of the Act, and verifying that the core criteria are met (section 269C). If the CEO is satisfied with the application, they must make a written order declaring that the specified goods are subject to the prescribed item of Schedule 4 to the Customs Tariff Act 1995 (section 269P(3)). Additionally, the CEO must publish a notice in the Gazette inviting any person who believes the TCO should not be made to submit their reasons (subsection 269K(1)).
The instrument specifies that the TCO is effective from the date the application was lodged, which in this case was 06 August 2008 (subsection 269S(1)). Importantly, the TCO does not affect the rights of any person other than the Commonwealth, meaning it does not disadvantage or impose liabilities on anyone regarding actions taken before the TCO's effective date (subsection 269S(2)). Importers of the affected goods can benefit by applying for a refund of duty on goods imported since the TCO's effective date (paragraph 126(1)(r) of the Regulations).
In terms of potential breaches, the Customs Act 1901 does not explicitly detail offences or penalties related to the improper application or misuse of a TCO within this specific context. However, any general breaches of the Customs Act or associated regulations could result in civil or criminal penalties. These penalties may include fines and imprisonment, depending on the severity of the breach. The specific penalties would be determined according to the relevant sections of the Customs Act and any associated regulations.