EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0908468
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 sealing compound on 12 March 2009.
Instrument
TCO No 0908468 was made on 29 May 2009. It declares that those certain sealing compound 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. 0908468 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 was enacted to provide for the regulation of imports and exports in Australia, and it includes provisions for the establishment of tariff concession orders (TCOs) under Part XVA. The instrument, F2009L03581, addresses the gap by allowing the Chief Executive Officer of Customs to grant tariff concessions on specific goods, thereby facilitating smoother trade processes and potentially lowering costs for businesses importing these goods. This instrument was introduced to provide tariff relief to importers, and the relevant legislature, in this case, is the Australian Parliament. The policy objective is to support Australian businesses by potentially reducing the duty on imported goods, thus making these goods more competitive in the Australian market. The explanatory statement for Tariff Concession Instrument No. 0908468 indicates that it was introduced to benefit importers of sealing compound by providing a zero-duty rate, subject to certain conditions being met.
Scope and Application
The Tariff Concession Instrument No. 0908468 under the Customs Act 1901 applies to the specific sealing compounds identified in the instrument, granting them a concession on the rate of customs duty. This concession is applicable to the Projex Group and extends to any other entity importing the same goods. The scope of the Act is national, as it operates under the Commonwealth's legislative authority, and it does not distinguish between states or territories. The Act excludes goods specified in section 269SJ, which are ineligible for tariff concessions. The application of the Act can be further refined through subordinate instruments, which may define specific details or conditions under which the tariff concessions apply. The commencement of the Instrument is effective from the date of the application, 12 March 2009, and it does not retroactively affect any pre-existing rights or impose new liabilities on entities other than the Commonwealth. Importers stand to benefit from this instrument, as they can apply for refunds of duty on the eligible goods imported since the effective date.
Key Provisions
The Tariff Concession Order (TCO) No. 0908468, as outlined in the Customs Act 1901 (the Act), is specifically targeted at certain sealing compounds. According to Section 269F, a person can apply to the Chief Executive Officer of Customs (the CEO) for a TCO, which would apply a lower rate of customs duty to the goods in question. Section 269C specifies that the application will meet the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. For this TCO, the CEO determined that the application met these criteria, as evidenced by the absence of substitutable goods produced in Australia at the time the application was lodged.
The obligations imposed by the Act on the parties involved are primarily centered around the application and approval process for TCOs. The CEO must ensure that the application is not in respect of goods specified in Section 269SJ, which excludes certain goods from being eligible for a TCO. The CEO must also consider whether the application meets the core criteria as outlined in Section 269C. Additionally, Subsection 269K(1) mandates that the CEO must publish a notice in the Gazette inviting any interested parties to submit their views on whether the TCO should be made. In this instance, no submissions were received by the CEO.
Under the Customs Act 1901, breaches of the conditions set forth for TCOs can lead to various consequences. Section 274 outlines the potential penalties for non-compliance, which can include fines and imprisonment. The maximum penalties for these offences are stipulated in the relevant sections of the Act and can vary depending on the severity of the breach. It is important to note that the TCO does not affect the rights of any person as at the date of registration to disadvantage that person or impose liabilities in respect of anything done or omitted before the date of registration.
For TCO No. 0908468, the Act ensures that the rights of importers will be beneficially affected. Under paragraph 126(1)(r) of the Regulations, importers of the affected sealing compounds can apply for a refund of duty on goods imported since the day the TCO is taken to have come into force. Importantly, the TCO does not impose any liabilities on any person, ensuring that the rights and interests of all parties are protected. The commencement of the TCO is effective from the day the application was lodged, which is 12 March 2009.