EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0908466
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.
Projex Group applied for a TCO in respect of certain bonding emulsion on 12 March 2009.
Instrument
TCO No 0908466 was made on 29 May 2009. It declares that those certain bonding emulsion 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. 0908466 is taken to have come into force on 12 March 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, enacted by the Parliament of Australia, establishes a framework for the imposition of customs duty on imported goods. The Customs Act was amended to include the Tariff Concession Instrument No. 0908466, which was introduced to address the specific issue of granting tariff concessions for certain goods. This instrument was created to provide relief from customs duty for particular goods, such as certain bonding emulsion, by making them eligible for a zero-rate duty under specific conditions. The policy objective behind this instrument is to encourage the importation of these goods by reducing the financial burden on importers, thereby potentially stimulating trade and economic activity. The instrument ensures that such tariff concessions are granted only when no substitutable goods are produced in Australia, thereby maintaining a fair and competitive market environment.
Scope and Application
The Tariff Concession Instrument No. 0908466 under the Customs Act 1901 applies specifically to certain bonding emulsion goods for which Projex Group applied for tariff concessions. The Act governs the process by which the Chief Executive Officer of Customs can make Tariff Concession Orders (TCOs), which are designed to provide lower rates of customs duty on specified goods if no substitutable goods are produced in Australia. This particular instrument, TCO No. 0908466, was made on 29 May 2009, and it declares that certain bonding emulsion are subject to a free rate of duty, down from the general rate of 5%, as no substitutable goods were produced in Australia. The application of this TCO began on 12 March 2009, the date the application was lodged. The instrument does not disadvantage any person other than the Commonwealth and does not impose any liabilities on any person, while benefiting importers who can apply for a refund of duty on goods imported since the effective date of the TCO.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Instrument No. 0908466, outline the process for granting tariff concessions for certain goods, in this case, specific bonding emulsion. According to section 269F of the Customs Act 1901, any person can apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO). If the CEO is satisfied that the application is valid, the next step involves determining whether the application meets the core criteria, as stated in section 269C. If these criteria are met, the CEO is required to issue a written order, effectively a TCO, under section 269P(3). The TCO in this instance applies to certain bonding emulsion, granting them a duty-free rate under item 50 of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations and requirements on the parties it governs. Firstly, the CEO must assess the validity of any TCO application received. This includes ensuring that the application is not for goods specified in section 269SJ, which are ineligible for a TCO. The CEO must also confirm that no substitutable goods were produced in Australia on the day the application was lodged, as outlined in section 269C. Additionally, the CEO must publish a notice in the Gazette, inviting any interested parties to lodge submissions if they believe the TCO should not be made, in accordance with subsection 269K(1). Lastly, once the TCO is issued, it comes into force on the date the application was lodged, as per subsection 269S(1).
Should there be a breach of the provisions outlined in this legislation, there are potential civil and criminal consequences. While the specific penalties are not detailed in this explanatory statement, breaches of the Customs Act 1901 can lead to significant penalties. These may include fines, imprisonment, or both, depending on the nature and severity of the breach. The maximum penalties are not specified in this particular explanatory statement, but they can be substantial under the broader framework of the Customs Act. Compliance with the Act is crucial to avoid these potential consequences.