EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0835298
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.
Zambelli Rainwater Prodcuts applied for a TCO in respect of certain galvanized steel roof fittings on 14 October 2008.
Instrument
TCO No 0835298 was made on 14 April 2009. It declares that those certain galvanized steel roof fittings 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. 0835298 is taken to have come into force on 14 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 Tariff Concession Instrument No. 0835298, enacted in 2009, amends the Customs Act 1901 to provide tariff concessions for certain goods, specifically certain galvanized steel roof fittings. This legislative instrument was introduced to address the gap in the availability of substitutable goods produced in Australia, thus allowing for tariff concessions under the scheme outlined in Part XVA of the Customs Act 1901. The Tariff Concession Orders (TCOs) scheme was established to provide lower rates of customs duty on goods that meet certain criteria, such as the absence of substitutable goods produced domestically. The policy objective of this instrument, as set out in the Customs Act, is to ensure that tariff concessions are granted when it is in the public interest and when the application meets the core criteria specified in the Act. The instrument was enacted by the Commonwealth Parliament and provides for a free rate of duty on the specified goods, benefiting importers by potentially allowing them to apply for a refund of duty on goods imported since the effective date of the concession.
Scope and Application
The Tariff Concession Instrument No. 0835298 under the Customs Act 1901 applies to specific goods for which a Tariff Concession Order (TCO) has been granted, in this case certain galvanized steel roof fittings. The TCO is administered by the Chief Executive Officer of Customs (the CEO), who is responsible for determining whether an application for a TCO meets the core criteria as outlined in the Act. The concession applies to goods that are not substitutable with products manufactured in Australia and for which a lower rate of customs duty is prescribed. This particular TCO benefits importers by allowing them to apply for a refund of duty on the specified goods imported since the day the TCO came into force. The geographic reach of this Act and the associated TCO is national, applying across Australia as per Commonwealth legislation. There are no stated exclusions or exemptions within the scope of this specific TCO, and the Act does not impose any liabilities on any person as a result of its implementation. The application of this TCO may be further refined or extended through subordinate instruments, which are not detailed in the explanatory statement.
Key Provisions
The main operative sections of the Customs Act 1901, specifically under Tariff Concession Instrument No. 0835298, include sections 269F, 269C, and 269P. Section 269F allows for an application to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of goods. Section 269C stipulates that a TCO 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. Section 269P mandates that if the CEO is satisfied that a TCO application meets the core criteria, they must make a written order declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations on the parties involved. The CEO must ensure that any application for a TCO is valid and does not concern goods specified in section 269SJ of the Act, which excludes certain goods from TCO eligibility. The CEO is also required to assess whether the application meets the core criteria, specifically checking if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Once satisfied, the CEO must make a written order specifying the applicable duty rate under the Customs Tariff Act 1995. Additionally, the CEO must publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made, though in this case, no submissions were received.
Failure to comply with the provisions of the Customs Act 1901 can result in various civil and criminal consequences. Breaches of the Act may lead to penalties, including fines and imprisonment, depending on the severity of the violation. For instance, under subsection 269K(1), if the CEO fails to publish a notice in the Gazette as required, there could be repercussions for not adhering to the statutory obligations. Additionally, under the general provisions of the Act, any person found to be in violation of the Customs Act 1901 may face penalties as specified in the Act, which could include fines and imprisonment for more serious infractions.
The Tariff Concession Instrument No. 0835298, which came into effect on 14 October 2008, specifically exempts certain galvanized steel roof fittings from the general rate of duty, reducing it to free. This benefit applies to importers who have imported such goods since the TCO was taken to have come into force. Importers can apply for a refund of duty on goods imported from the effective date of the TCO under paragraph 126(1)(r) of the Regulations. It is crucial to note that the TCO does not impose any liabilities on any person and does not affect the rights of individuals as at the date of registration.