EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0833070
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.
Oztent Aust Pty Ltd applied for a TCO in respect of certain tent accessories on 26 September 2008.
Instrument
TCO No 0833070 was made on 12 December 2008. It declares that those certain tent accessories 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. 0833070 is taken to have come into force on 26 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 Customs Act 1901 was enacted to provide a comprehensive framework for the regulation of customs and excise in Australia. This Act establishes a scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs, allowing for lower rates of customs duty on certain goods. The Tariff Concession Instrument No. 0833070, made in 2008, is a specific instance of such an order, aimed at addressing a particular application from Oztent Aust Pty Ltd for tariff concessions on certain tent accessories. This instrument was introduced to ensure that the application process and its outcomes align with the core criteria set out in the Act, particularly by confirming that no substitutable goods were produced in Australia at the time of application, thereby justifying the tariff concession. The instrument was subject to a period of public consultation as required by the Act, though no submissions were received against the proposed concession. The policy objective underlying this instrument is to facilitate trade by reducing the duty burden on specific goods, thereby potentially enhancing competitiveness and consumer benefits.
Scope and Application
The Tariff Concession Instrument No. 0833070 under the Customs Act 1901 applies to entities or individuals seeking tariff concessions on imported goods. Specifically, the instrument pertains to Oztent Aust Pty Ltd's application for certain tent accessories, which the Chief Executive Officer of Customs (CEO) assessed and approved. The instrument sets out the conditions under which these goods are eligible for a tariff concession, reducing the customs duty from the general rate of 5% to free, provided that no substitutable goods are produced in Australia. This concession is effective from the date the application was lodged, 26 September 2008. The application process and the CEO’s decision are governed by the provisions of the Customs Act 1901, particularly sections 269C, 269F, and 269SJ, which outline the criteria for TCO eligibility and exclusions. The CEO is required to consult and publish notices inviting submissions, though in this case, no objections were received. The instrument does not disadvantage any person other than the Commonwealth and imposes no new liabilities, thereby benefiting the rights of importers who can apply for duty refunds on eligible goods imported since the TCO's effective date.
Key Provisions
The Tariff Concession Instrument No. 0833070 pertains to the Customs Act 1901 and establishes provisions for Tariff Concession Orders (TCOs). Section 269F allows individuals to apply to the Chief Executive Officer of Customs (CEO) for a TCO concerning specific goods. If the application does not pertain to goods that are excluded by section 269SJ, the CEO must evaluate whether the application satisfies the core criteria as outlined in section 269C. According to this section, a TCO application meets the criteria if, on the date the application was submitted, there were no substitutable goods produced in Australia in the ordinary course of business. Definitions for "goods produced in Australia," "ordinary course of business," and "substitutable goods" are provided in sections 269D, 269E, and 269F, respectively.
The obligations imposed by this legislation on the parties involved include the CEO's duty to assess TCO applications and ensure they meet the core criteria as outlined in section 269C. Additionally, the CEO must publish a notice in the Gazette inviting submissions from any individual who believes the TCO should not be granted, as stipulated in section 269K(1). In the case of TCO No. 0833070, no submissions were received by the CEO in response to this invitation. Moreover, the TCO does not impact the rights of any person, other than the Commonwealth, as of the date of registration, nor does it impose any liabilities on any person concerning actions or omissions prior to the registration date.
Regarding potential offences and penalties, the Customs Act 1901 does not explicitly outline specific offences or penalties related to TCOs in this context. However, it is important to note that any breach of the Act or Regulations may result in civil or criminal consequences, as per the general provisions of the Customs Act 1901. In the case of TCO No. 0833070, no specific penalties are mentioned, but any breach of the Act or Regulations may lead to consequences as outlined in the general provisions of the Act.