Overview

The Tariff Concession Instrument No. 0843788 was enacted in 2009 under the Customs Act 1901 to facilitate the reduction of customs duty rates on specific goods, in this case, certain wine bottling lines. This instrument was introduced to address the issue of applying for tariff concessions where no substitutable goods were being produced domestically, thereby ensuring that Australian importers are not disadvantaged. The instrument was developed in accordance with the provisions of the Customs Act 1901, specifically section 269F, which allows for applications to the Chief Executive Officer of Customs for tariff concession orders. The policy objective behind this legislation is to encourage the import of goods by reducing associated costs, thus potentially boosting economic activity and competition within the relevant sectors. The instrument came into force on 12 December 2008, the date the application was lodged, and provides significant tariff relief to importers of the specified wine bottling lines by setting the duty rate at free, as opposed to the general rate of 5%.

Scope and Application

The Tariff Concession Instrument No. 0843788 applies to goods specified in the instrument, specifically certain wine bottling lines, and is administered under Part XVA of the Customs Act 1901. This Act allows the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) that apply a lower rate of customs duty to goods that meet certain criteria, such as the absence of substitutable goods produced in Australia. The application process requires an applicant to demonstrate that the goods in question are not specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO, and that the application meets the core criteria outlined in sections 269C, 269B, and 269D of the Act. The instrument, which came into effect on 12 December 2008, benefits importers by allowing them to apply for a refund of duty on goods imported since the TCO's effective date, as stipulated in the Regulations. The application process also includes a public consultation period where objections can be raised, although no submissions were received for this particular TCO. The geographic reach of the Act is national, as it pertains to the importation of goods into Australia.

Key Provisions

The primary operative sections of the Tariff Concession Instrument No. 0843788, as mentioned in the explanatory statement, revolve around the granting of tariff concessions for certain goods under the Customs Act 1901 (section 269F). Specifically, this instrument allows for a lower rate of customs duty on goods that are subject to a Tariff Concession Order (TCO). The CEO of Customs must decide whether to grant a TCO based on whether the application meets the core criteria outlined in section 269C, which requires that no substitutable goods are produced in Australia in the ordinary course of business on the day the application was lodged (section 269P(3)). This instrument declares that certain wine bottling lines are subject to a TCO and that these goods will be exempt from customs duty. The Act imposes specific obligations on the parties involved, primarily the applicant and the CEO of Customs. The applicant, such as ANZ Winemakers in this case, must submit an application to the CEO for a TCO, ensuring that it meets the core criteria as specified in section 269C. The CEO, upon receiving a valid application, is obligated to assess whether the application meets the criteria, consult with relevant parties if necessary, and if satisfied, make a written order declaring the goods to which the TCO applies. Additionally, the CEO must publish a notice in the Gazette inviting submissions from any person who may object to the TCO, as required by section 269K(1). In terms of consequences for breach, the explanatory statement does not explicitly mention any offences or penalties under the Customs Act 1901. However, any breach of the terms set out in the TCO could potentially lead to civil or administrative penalties. These penalties might include fines, penalties for incorrect declarations, or other civil remedies available under the Act. The specific penalties would depend on the nature and severity of the breach, and they are not detailed in the explanatory statement. The TCO does not affect the rights of any person other than the Commonwealth, ensuring that no individual is disadvantaged or imposed liabilities for actions taken before the TCO was registered. This means that the rights of importers will be beneficially affected, allowing them to apply for refunds of duty on goods imported since the TCO came into force, as provided under paragraph 126(1)(r) of the Regulations. Importantly, the TCO does not impose any new liabilities on any person, ensuring that there are no additional burdens placed on individuals or entities due to the concession.