EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0834686
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.
General Merchandise and Apparel Group applied for a TCO in respect of certain roller skates and or inline skates on 09 October 2008.
Instrument
TCO No 0834686 was made on 14 January 2009. It declares that those certain roller skates and or inline skates 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. 0834686 is taken to have come into force on 09 October 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 amended to introduce the Tariff Concession Orders (TCOs) scheme, allowing the Chief Executive Officer of Customs to reduce customs duty rates for specific goods. The Act addresses the gap in the duty structure by providing a mechanism for tariff reductions for certain goods where no substitutable Australian-made alternatives exist. The policy objective is to support industries and consumers by making certain goods more affordable and accessible. The Tariff Concession Instrument No. 0834686 was enacted by the Commonwealth to address an application by General Merchandise and Apparel Group for a tariff concession on certain roller skates and inline skates, effective from 9 October 2008. This instrument, which was published in the Gazette with no submissions received against it, reduces the duty rate from 5% to free for the specified goods, benefiting importers who can now claim refunds for duties paid on these goods since the effective date of the concession.
Scope and Application
The Customs Act 1901, under its Part XVA, facilitates the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders allow for a reduced rate of customs duty on specified goods. The legislation applies to any person who can demonstrate that the goods they seek to import are not substitutable with goods produced in Australia in the ordinary course of business. This includes both individuals and corporate entities engaged in import activities within Australia's jurisdiction. The act's geographic reach is nationwide, applying across all states and territories within the Commonwealth of Australia. Excluded from this concession are goods specified in section 269SJ of the Act, which outlines items that cannot be subject to a TCO. Additionally, the Act allows for the extension and restriction of application through subordinate instruments, ensuring flexibility in the implementation of tariff concessions.
Key Provisions
The Tariff Concession Instrument No. 0834686, issued under the Customs Act 1901, pertains to the application of tariff concessions for certain roller skates and inline skates. Section 269F of the Act allows individuals to apply for a Tariff Concession Order (TCO) if certain criteria are met. Section 269C specifies that an application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. If the Chief Executive Officer (CEO) of Customs is satisfied that the application meets these criteria, they must make a written order declaring that the goods in question are subject to a prescribed rate of customs duty, as outlined in Schedule 4 to the Customs Tariff Act 1995.
Under the Act, the CEO has the obligation to assess whether an application for a TCO meets the core criteria as outlined in section 269C. If the application is deemed valid, the CEO must proceed to make a written TCO. Section 269K(1) requires the CEO to publish a notice in the Gazette, inviting any interested parties to lodge submissions if they believe there are reasons why the TCO should not be made. In this case, the CEO did not receive any submissions. The TCO is considered to have come into force on the date the application was lodged, as specified in subsection 269S(1).
Should there be a breach of any of the conditions or requirements outlined in the Customs Act 1901 or the associated regulations, there are potential civil and criminal consequences. However, the specific penalties are not detailed in this explanatory statement. It is important to note that the TCO does not affect the rights of any person, other than the Commonwealth, as at the date of registration in a manner that would disadvantage them or impose liabilities for actions taken prior to the registration date. Importers of the affected goods may benefit from applying for a refund of duty under paragraph 126(1)(r) of the Regulations for goods imported since the TCO came into force.