EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0832748
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.
Lisec Australia applied for a TCO in respect of certain glass handling equipment on 25 September 2008.
Instrument
TCO No 0832748 was made on 19 December 2008. It declares that those certain glass handling equipment 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. 0832748 is taken to have come into force on 25 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. 0832748 was enacted under the Customs Act 1901, aimed at addressing the need for tariff concessions on specific goods imported into Australia. The instrument was introduced to provide lower rates of customs duty for certain goods, in this case, glass handling equipment, by allowing the Chief Executive Officer of Customs to make a Tariff Concession Order (TCO). This legislation facilitates the import of goods that are not produced domestically, ensuring that Australian consumers and businesses have access to a broader range of products at potentially reduced costs. The policy objective is to support industries by making essential goods more affordable, thereby fostering economic growth and efficiency. The enactment of this instrument was carried out by the Parliament of Australia, reflecting the legislative process and commitment to streamline customs duties for specific imported goods.
Scope and Application
The Customs Act 1901 provides a framework for the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) which apply lower rates of customs duty on specific goods. Section 269F of the Act allows for applications for a TCO from any person, provided that the goods in question are not those specified in section 269SJ which are ineligible for a TCO. The CEO must assess if the application meets the core criteria outlined in section 269C, which is satisfied if no substitutable goods are produced in Australia in the ordinary course of business. If the application meets these criteria, the CEO must issue a TCO specifying the prescribed item of Schedule 4 to the Customs Tariff Act 1995 applicable to the goods. The TCO applies from the date the application was lodged, as per subsection 269S(1) of the Act. The TCO does not affect the rights of any person as at the date of registration, nor does it impose any liabilities on any person, although it may benefit importers by allowing them to apply for a refund of duty on goods imported since the TCO came into force. This legislative instrument operates on a national level and is not restricted by state or territory boundaries.
Key Provisions
The main operative sections of the Customs Act 1901, as referenced in Tariff Concession Instrument No. 0832748, include sections 269F, 269C, 269B, and 269P. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of certain goods. If the CEO determines that the application meets the core criteria (section 269C), they must make a written order (section 269P(3)). Section 269B defines key terms such as "goods produced in Australia" and "substitutable goods," which are crucial in determining whether an application meets the core criteria. Specifically, an application meets the core criteria if, on the day it was lodged, no substitutable goods were produced in Australia in the ordinary course of business.
The Act imposes several obligations and requirements on the parties involved. The CEO of Customs must assess whether an application for a TCO meets the core criteria as outlined in section 269C. This involves determining whether there are any substitutable goods produced in Australia that could be used in place of the goods for which the TCO is being applied. If the CEO is satisfied that the application meets these criteria, they must make a written TCO as per section 269P(3). Additionally, the CEO must publish a notice in the Gazette inviting any interested parties to submit any objections to the TCO, as required by subsection 269K(1). In the case of TCO No. 0832748, the CEO did not receive any submissions in response to the published notice.
Under the Customs Act 1901, there are specific civil and criminal consequences for breaches related to Tariff Concession Orders. Although the explanatory statement does not explicitly outline penalties for breaches, it is understood that breaches of the Customs Act can result in significant legal consequences. Typically, penalties for breaches of customs legislation can include fines and imprisonment, depending on the severity of the breach. In the case of TCO No. 0832748, there are no stated penalties for breaches within the explanatory statement, but the potential legal ramifications for non-compliance with customs laws are severe. Importers who do not adhere to the terms of the TCO may face financial penalties or other legal actions.