EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0829792
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.
Onesteel Pty Ltd applied for a TCO in respect of certain billet caster on 05 September 2008.
Instrument
TCO No 0829792 was made on 28 November 2008. It declares that those certain billet caster 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. 0829792 is taken to have come into force on 05 September 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. 0829792, enacted in 2008, is an instrument under the Customs Act 1901 designed to provide tariff concessions for certain goods, specifically billet casters in this instance. This instrument was introduced to address the need for reduced customs duty rates on specific imported goods where no suitable domestic alternatives are produced. The Tariff Concession Order was made by the Chief Executive Officer of Customs, in accordance with section 269F of the Act, following an application by Onesteel Pty Ltd on 5 September 2008. The policy objective is to facilitate trade by lowering the duty burden on imported goods that do not have substitutable Australian-produced equivalents, thereby encouraging the importation of these goods and potentially stimulating economic activity. The Tariff Concession Order came into force on the date of the application, 5 September 2008, and no submissions were received in response to the published notice inviting objections to the order. This order benefits importers by allowing them to apply for refunds of duty paid on the goods since the order's effective date.
Scope and Application
The Tariff Concession Instrument No. 0829792 under the Customs Act 1901 applies to certain billet casters which are now exempt from customs duty, effective from the date the application was lodged on 5 September 2008. This instrument is applicable to Onesteel Pty Ltd, the entity that applied for the tariff concession, and to the goods specified in the application. The instrument pertains to the importation of these goods into Australia and ensures they are treated according to the terms outlined within the instrument, which includes a zero duty rate for the specified billet casters. The scope of the Act extends to any goods that meet the criteria for tariff concession, provided they are not specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. The geographic reach of this legislation is national, as it applies to the importation of goods into Australia under the Customs Act 1901. The application of this instrument is subject to certain exclusions and thresholds as defined in the Act, and the CEO's determination is final on whether the application meets the core criteria. The instrument does not affect any existing rights or liabilities of persons other than the Commonwealth, and it does not impose any new liabilities on any person.
Key Provisions
The key operative sections of the Tariff Concession Instrument No. 0829792 under the Customs Act 1901, as referenced in the explanatory statement, focus on the conditions and process for making Tariff Concession Orders (TCOs). Section 269F (1) allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods, provided the goods are not specified in section 269SJ of the Act (2). The CEO must determine if the application meets the core criteria set out in section 269C (3), which includes ensuring that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged, as defined in section 269D and section 269E (4). If the CEO is satisfied that the application meets these criteria, they must make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (5).
The obligations and requirements imposed by the Act on parties or entities it governs include ensuring that applications for TCOs are made in accordance with the specified criteria, which involve verifying that no substitutable goods were produced in Australia at the time of the application. The CEO has a duty to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting submissions from any person who believes the TCO should not be made (6). Additionally, the rights of importers are beneficially affected by the TCO, allowing them to apply for a refund of duty on goods imported since the day the TCO is taken to have come into force (7).
The legislation does not explicitly outline offences, penalties, or civil/criminal consequences for breach within the provided sections. However, any failure to comply with the requirements set out in the Customs Act 1901 or the Tariff Concession Instrument could potentially lead to legal repercussions under broader customs laws, including potential penalties for non-compliance with customs duties and regulations. These penalties can vary widely depending on the nature and severity of the breach but could include fines, imprisonment, or other civil or criminal consequences as prescribed by relevant laws.