EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0825894
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.
State Sports Centre Trust applied for a TCO in respect of certain moveable swimming pool boom bulkhead on 11 August 2008.
Instrument
TCO No 0825894 was made on 31 October 2008. It declares that those certain moveable swimming pool boom bulkhead 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. 0825894 is taken to have come into force on 11 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. 0825894, made under the Customs Act 1901, was enacted to provide tariff concessions for specific goods by reducing or eliminating the customs duty on them. The instrument was introduced to address the need for tariff relief on certain imported goods, ensuring they are competitively priced in the Australian market, thereby facilitating trade and economic efficiency. The instrument was enacted by the Chief Executive Officer of Customs in response to an application by the State Sports Centre Trust for tariff concessions on certain moveable swimming pool boom bulkheads, effective from 11 August 2008. The underlying policy objective is to support the economic viability of businesses by reducing the cost of imported goods, thus encouraging trade and investment in Australia.
Scope and Application
The Tariff Concession Instrument No. 0825894 applies to the import of certain moveable swimming pool boom bulkheads, granting tariff concessions in accordance with the Customs Act 1901. This legislation targets specific goods that are subject to a Tariff Concession Order (TCO) applied for by entities such as the State Sports Centre Trust. The TCO mechanism is designed to lower the rate of customs duty on goods for which no substitutable products are produced in Australia, thereby encouraging the importation of these specific goods. The instrument applies nationally as it falls under the Commonwealth jurisdiction and is not limited to a particular state or territory. There are, however, specific exclusions as outlined in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. The application of the TCO is further governed by subordinate instruments, such as the Customs Tariff Act 1995, which specifies the applicable duty rates in Schedule 4. The instrument comes into effect from the date the application was lodged, and it does not retroactively disadvantage any person or impose new liabilities on individuals other than the Commonwealth.
Key Provisions
The Tariff Concession Instrument No. 0825894 under the Customs Act 1901 (sections 269C, 269F, 269K, 269P, 269S, and 269SJ) applies to certain moveable swimming pool boom bulkheads, establishing a lower rate of customs duty for these goods. Specifically, section 269F allows a person to apply for a Tariff Concession Order (TCO) in respect of goods. If the Chief Executive Officer (CEO) of Customs is satisfied that the application meets the core criteria (section 269C), they must make a written order (section 269P). In this case, the CEO determined that no substitutable goods were produced in Australia, satisfying the core criteria, and hence, the TCO was issued on 31 October 2008. The instrument declares that the specified moveable swimming pool boom bulkheads are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, with a general duty rate of 5%, reduced to free under the TCO.
The Act imposes several obligations on the parties involved. Firstly, the CEO must ensure that any TCO application does not pertain to goods specified in section 269SJ, which are ineligible for a TCO. Secondly, the CEO must assess whether the application meets the core criteria, as outlined in sections 269B, 269C, 269D, and 269E. Upon meeting these criteria, the CEO must issue a written TCO (section 269P(3)). Additionally, section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from any interested parties, although in this instance, no submissions were received. Lastly, the TCO does not disadvantage any person or impose liabilities for actions taken before its registration.
The Act provides for potential consequences for non-compliance with its provisions. However, the explanatory statement does not detail specific offences or penalties related to the issuance or application of TCOs. The primary focus of the Act is on facilitating tariff concessions for eligible goods, ensuring that importers can benefit from reduced customs duties where applicable. The instrument's primary impact is on the rights of importers, who can apply for duty refunds on goods imported since the TCO's effective date, as per paragraph 126(1)(r) of the Regulations.