EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0900425
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.
Bluescope Steel Limited applied for a TCO in respect of certain ramming mixture on 12 January 2009.
Instrument
TCO No 0900425 was made on 03 April 2009. It declares that those certain ramming mixture 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. 0900425 is taken to have come into force on 12 January 2009.
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 enacted to provide a comprehensive framework for the administration of customs duties in Australia, among other things. In 2009, Tariff Concession Instrument No. 0900425 was introduced by the Parliament of Australia to address a specific issue concerning the importation of certain ramming mixtures. This instrument was designed to provide tariff concessions for these goods, effectively reducing the customs duty from the general rate of 5% to free, thereby addressing the gap for non-Australian production of substitutable goods as per the core criteria outlined in the Customs Act. The policy objective was to encourage the importation of these goods by removing the financial barrier of customs duty, thereby potentially benefiting the market and consumers within Australia.
Scope and Application
The Tariff Concession Instrument No. 0900425, issued under the Customs Act 1901, applies to the application process for Tariff Concession Orders (TCO) concerning specific goods, administered by the Chief Executive Officer of Customs (CEO). This instrument is specifically tailored for entities, such as Bluescope Steel Limited, seeking a concession on customs duty for particular goods, in this case, ramming mixture. The instrument's scope is national, aligning with the Commonwealth's regulatory authority. The Act excludes certain goods, as defined in section 269SJ, from being subject to a TCO. The CEO's decision to issue a TCO hinges on the absence of substitutable goods produced in Australia, as outlined in sections 269C and 269D of the Act. Once a TCO is granted, the specified goods, previously subject to a 5% duty rate, are now duty-free, effective from the date of the application, as per subsection 269S(1) of the Act. The rights of entities other than the Commonwealth remain unaffected, and importers can apply for duty refunds under the Customs Tariff Act 1995.
Key Provisions
The Tariff Concession Instrument No. 0900425, made under section 269F of the Customs Act 1901, provides a lower rate of customs duty for certain goods specified in the instrument. Section 269P(3) of the Act mandates that if the Chief Executive Officer of Customs (CEO) is satisfied that an application for a Tariff Concession Order (TCO) meets the core criteria set out in section 269C, the CEO must issue a written TCO. In this case, TCO No. 0900425 applies to certain ramming mixture, declaring that these goods are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, with a duty rate of free, as opposed to the general rate of 5%.
The Act imposes specific obligations on applicants for a TCO, requiring them to ensure that the goods in question meet the core criteria, specifically that no substitutable goods are produced in Australia on the day the application is lodged. This is detailed in section 269C of the Act, which defines substitutable goods as those produced in Australia that are put, or are capable of being put, to a use corresponding to the goods in the TCO application. Furthermore, the CEO has a duty to publish a notice in the Gazette, inviting submissions on the application as soon as practicable after accepting it as valid, as outlined in subsection 269K(1). If the CEO does not receive any submissions, this absence of objections can expedite the TCO process.
For breaches of the provisions in the Customs Act 1901, various penalties may apply. While the explanatory statement does not detail specific penalties under this particular TCO, general provisions in the Customs Act 1901 provide for both civil and criminal penalties for breaches, including fines and imprisonment, depending on the nature and severity of the offence. The maximum penalties are typically outlined in the relevant sections of the Act or in associated regulations, though they are not specified in this explanatory statement.
The Tariff Concession Instrument No. 0900425 comes into effect on the date the application was lodged, as per subsection 269S(1) of the Act, in this case, 12 January 2009. Importantly, this TCO does not affect the rights of any person, other than the Commonwealth, in respect of anything done or omitted before the date of registration. Importers of the specified goods will benefit from the duty concessions, and under paragraph 126(1)(r) of the Regulations, they can apply for a refund of duty on goods imported since the effective date of the TCO. The TCO also ensures that no new liabilities are imposed on any person as a result of its enactment.