Overview

The Customs Act 1901, enacted by the Commonwealth Parliament, provides for a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (CEO). This legislation was introduced to address the need for tariff concessions on certain imported goods that do not have Australian-made equivalents, thereby supporting economic efficiency and competitiveness. Specifically, the Act aims to provide lower rates of customs duty on goods that are the subject of a TCO, facilitating trade and reducing costs for businesses. In this context, Tariff Concession Instrument No. 0842547 was made on 27 February 2009, following an application by Hydraulink Australia for certain pipe tube and hose fittings and adaptors. The instrument declares that these goods are subject to a free rate of duty under the Customs Tariff Act 1995, as the CEO was satisfied that no substitutable goods were produced in Australia at the time of the application. The CEO received no objections to the application, and the concession is effective from 3 December 2008.

Scope and Application

The Tariff Concession Instrument No. 0842547, issued under the Customs Act 1901, applies to specific goods, in this case certain pipe tube and hose fittings and adaptors, which were the subject of an application by Hydraulink Australia on 03 December 2008. The instrument declares that these goods are subject to a tariff concession order (TCO) because no substitutable goods were produced in Australia on the day the application was lodged, thereby meeting the core criteria outlined in the Act. This concession allows these goods to be imported at a rate of duty of free, as opposed to the general rate of 5%. The instrument ensures that the rights of importers are beneficially affected, allowing them to apply for a refund of duty on goods imported since the TCO came into force on 03 December 2008, without imposing any liabilities on any person. The CEO of Customs did not receive any submissions in response to the published notice in the Gazette inviting objections to the TCO application. The Act applies to any person or entity that seeks to import goods eligible for a tariff concession, thereby reducing the customs duty applicable to these goods. The geographic reach of the Act is national, as it pertains to imports into Australia. The Act excludes certain goods specified in section 269SJ from being subject to a TCO. While the Act itself sets the framework for TCOs, the detailed application and specific concessions can be further defined through subordinate instruments. This particular TCO, No. 0842547, extends the application of the Act by specifically detailing the goods that benefit from the concession and the corresponding duty rates.

Key Provisions

The Customs Act 1901 (the Act) enables the Chief Executive Officer of Customs (the CEO) to issue Tariff Concession Orders (TCOs) under section 269F. If a person applies for a TCO in respect of certain goods, the CEO must consider whether the application meets the core criteria specified in section 269C. For an application to meet these criteria, the CEO must be satisfied that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269D defines "goods produced in Australia," section 269E defines "ordinary course of business," and section 269D defines "substitutable goods" as goods produced in Australia that can be used in the same way as the goods in question. Entities governed by the Act must ensure that their applications for TCOs are lodged in compliance with the legislative requirements. They must demonstrate that no substitutable goods were produced in Australia at the time of application. Once a TCO is issued, the reduced customs duty rates apply to the specified goods, which in this case are certain pipe tube and hose fittings and adaptors, as declared in TCO No. 0842547. Additionally, the CEO is required to publish a notice in the Gazette under subsection 269K(1), inviting submissions from any person who believes the TCO should not be made. In this case, no submissions were received. The Act does not specify any offences or penalties for the failure to comply with the requirements to apply for a TCO or for the CEO to issue one. However, 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 in respect of actions taken before the date of registration. Importers can apply for a refund of duty on goods imported since the date the TCO is taken to have come into force, as stipulated in paragraph 126(1)(r) of the Regulations.