EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0840471
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.
Arnotts Biscuits Pty Ltd applied for a TCO in respect of certain dough wire extruders metering pumps parts on 20 November 2008.
Instrument
TCO No 0840471 was made on 27 February 2009. It declares that those certain dough wire extruders metering pumps parts 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. 0840471 is taken to have come into force on 20 November 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. 0840471, enacted under the Customs Act 1901, addresses the need for a concessionary tariff rate for specific goods imported into Australia. This legislation was introduced to facilitate tariff concessions for certain goods, thereby reducing the customs duty payable on them. The instrument was developed in response to an application by Arnotts Biscuits Pty Ltd for tariff concessions on certain dough wire extruders metering pumps parts, which was lodged on 20 November 2008. The instrument was subsequently issued by the Chief Executive Officer of Customs on 27 February 2009, following satisfaction that no substitutable goods were produced in Australia, thus meeting the core criteria outlined in the Act. This concessional tariff rate aims to support the importer's rights by potentially allowing them to apply for a refund of duty on goods imported since the date the concession was taken to have come into force, while ensuring no liabilities are imposed on any person as a result of the tariff concession.
Scope and Application
The Customs Act 1901 provides a framework for the administration of customs and excise duties in Australia. Specifically, Part XVA of the Act allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). These orders apply a reduced rate of customs duty to goods specified in the order, provided certain criteria are met. The process begins when an entity, such as Arnotts Biscuits Pty Ltd, applies to the CEO for a TCO concerning specific goods. If the CEO determines that the application is valid and meets the core criteria—namely, that no substitutable goods are produced in Australia—a TCO is issued. This particular TCO, No. 0840471, was made on 27 February 2009, applying to certain dough wire extruders metering pumps parts, and was backdated to the day of the application, 20 November 2008. This instrument effectively grants free duty on these parts, which would otherwise attract a 5% duty rate. Importantly, the TCO does not retroactively affect the rights of any person and does not impose new liabilities on any individual or entity, though it does allow for duty refunds for importers of the specified goods since the effective date of the TCO.
Key Provisions
The Customs Act 1901 (the Act) outlines a process for granting tariff concessions through Tariff Concession Orders (TCOs), which can reduce the duty on certain goods (section 269F). An applicant can request a TCO for goods, provided these goods are not specifically excluded by section 269SJ of the Act. The Chief Executive Officer of Customs (the CEO) evaluates whether the application meets the core criteria, which include verifying that no substitutable goods are produced in Australia in the ordinary course of business (section 269C). If the application satisfies these criteria, the CEO issues a TCO, specifying the goods and the applicable rate of duty (section 269P(3)).
Under this Act, the CEO is mandated to publish a notice in the Gazette, inviting submissions from any interested parties who may have objections to the TCO (subsection 269K(1)). This ensures transparency and provides an opportunity for stakeholders to voice their concerns. In this instance, the CEO received no submissions against the TCO for certain dough wire extruders metering pumps parts, leading to the issuance of TCO No. 0840471 on 27 February 2009.
Parties governed by this Act must adhere to the provisions for applying for a TCO and the criteria for its approval. They must ensure that the goods in question do not have substitutable alternatives produced in Australia and comply with any publication requirements for objections. Importers who benefit from a TCO can apply for a refund of duty on goods imported since the effective date of the TCO (paragraph 126(1)(r) of the Regulations). The Act also ensures that the rights of existing parties are protected, and no liabilities are imposed retroactively.
The Act stipulates potential consequences for non-compliance with the provisions related to TCOs. While specific offences and penalties are not detailed in the provided text, breaches of customs regulations generally carry significant penalties. These may include fines, imprisonment, or both, depending on the severity of the breach and other relevant laws. The exact penalties would be determined according to the broader legal framework governing customs and related offences.