EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0901467
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 blast furnace template on 19 January 2009.
Instrument
TCO No 0901467 was made on 03 April 2009. It declares that those certain blast furnace template 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. 0901467 is taken to have come into force on 19 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 Tariff Concession Instrument No. 0901467 was enacted under the Customs Act 1901 with the purpose of addressing the issue of facilitating tariff concessions for specific goods not produced in Australia. This instrument was developed to streamline the process by which certain goods could receive reduced customs duties, provided that there were no substitutable goods produced domestically. Enacted by the Australian government, the policy objective behind this measure is to support economic efficiency and competitiveness by ensuring that Australian industries do not incur unnecessary tariffs on goods that are not domestically produced.
The Customs Act 1901 allows for the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) to apply reduced customs duty rates to specific goods. Bluescope Steel Limited applied for such a concession for certain blast furnace templates, and the instrument was issued on 3 April 2009, effective from 19 January 2009. This concession provides a zero duty rate on these goods, which otherwise would attract a 5% duty. The instrument ensures that the rights of importers are positively affected, allowing them to apply for duty refunds on imports made since the concession came into force.
Scope and Application
The Tariff Concession Instrument No. 0901467, which pertains to Tariff Concession Orders (TCOs) under the Customs Act 1901, applies to the specific case of certain blast furnace templates. The application for this concession was made by Bluescope Steel Limited on 19 January 2009, and after a thorough assessment by the Chief Executive Officer of Customs (CEO), the instrument was issued on 3 April 2009. The TCO applies to those particular blast furnace templates and alters the customs duty rate to zero, which is otherwise set at 5% under the general tariff schedule. This concession is granted when the CEO determines that no substitutable goods are produced in Australia, aligning with the criteria set out in the Customs Act. The scope of the Act ensures that this concession does not affect any pre-existing rights or impose new liabilities on individuals or entities except for the Commonwealth. Additionally, the TCO's commencement date is retroactively applied to the date of the application, ensuring that importers can seek duty refunds for goods imported since 19 January 2009. The Act, therefore, provides a clear framework for granting tariff concessions while maintaining safeguards to protect the rights of stakeholders.
Key Provisions
The main operative sections of this legislation, specifically TCO No. 0901467 under the Customs Act 1901, pertain to the concession of tariff rates for certain goods. Under section 269F, an entity such as Bluescope Steel Limited can apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) regarding specific goods. If the CEO determines that the application meets the core criteria, outlined in sections 269C and 269P(3), they must issue a written order specifying the goods and the applicable tariff item, as stated in Schedule 4 of the Customs Tariff Act 1995. This particular TCO No. 0901467, issued on 3 April 2009, applies to certain blast furnace templates, reducing their duty from 5% to free under item 50 of Schedule 4.
The obligations imposed by this legislation on the parties involved are primarily on the CEO of Customs. They must ensure that any TCO application is assessed against the criteria specified in sections 269C and 269P(3) of the Customs Act 1901. This involves verifying that the goods in question are not substitutable by any products manufactured in Australia and that they meet the definition of 'goods produced in Australia' and 'ordinary course of business' as defined in sections 269D and 269E, respectively. Additionally, under section 269K(1), the CEO is mandated to publish a notice in the Gazette, inviting any interested parties to submit their views on the proposed TCO. This ensures transparency and provides an opportunity for stakeholders to voice any concerns or objections.
Any breaches of the requirements or provisions set forth by this TCO and the Customs Act 1901 may lead to various civil or criminal consequences. While the specific penalties are not detailed within the explanatory statement, the Act generally provides for penalties that can include fines and imprisonment for fraudulent activities or willful disregard of customs laws. The exact penalties would be determined based on the nature and severity of the breach, as outlined in the broader framework of the Customs Act 1901 and any relevant subsidiary legislation. The TCO itself does not impose any liabilities on any person, ensuring that its application does not disadvantage any party who was operating under the previous tariff regime before the TCO's effective date.