EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0912331
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.
Big River Timber Group applied for a TCO in respect of certain veneer dryers on 14 April 2009.
Instrument
TCO No 0912331 was made on 30 June 2009. It declares that those certain veneer dryers 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. 0912331 is taken to have come into force on 14 April 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. 0912331 was introduced to provide a concession on customs duty for specific goods as outlined under the Customs Act 1901. This legislation was enacted to address the need for tariff concessions that could stimulate the importation of goods that are not produced domestically, thereby encouraging trade and economic growth. The instrument was formulated in response to an application by the Big River Timber Group for tariff concessions on certain veneer dryers. The Tariff Concession Order, numbered 0912331, was made by the Chief Executive Officer of Customs, following a determination that no substitutable goods were produced in Australia at the time of the application. This order allows for a reduction of customs duty on these specific veneer dryers, aligning with the general policy objective of the Customs Act to facilitate trade by reducing unnecessary barriers. The order came into effect on the date the application was lodged, 14 April 2009, and did not disadvantage any existing rights or impose new liabilities on non-Commonwealth entities.
Scope and Application
The Customs Act 1901, specifically as amended by Tariff Concession Instrument No. 0912331, applies to entities seeking tariff concessions on imported goods, particularly focusing on the eligibility of these goods for reduced customs duty rates. The instrument pertains to specific goods, in this case certain veneer dryers, and it is applicable from the date the application for the tariff concession was lodged. The application of this instrument is determined by the Chief Executive Officer of Customs, who must ensure that the goods in question are not substitutable by Australian-produced goods and meet the criteria set out in the Act. This legislation operates within the Commonwealth jurisdiction, influencing how customs duties are assessed and collected on imported goods across Australia. The instrument does not apply to goods that are explicitly excluded under section 269SJ of the Act, such as certain defence-related items or those that may impact national security. Additionally, the instrument does not impose new liabilities on any person and protects the rights of importers, allowing them to apply for duty refunds for goods imported since the effective date of the concession.
Key Provisions
The key operative sections of the Customs Act 1901, as amended by Tariff Concession Instrument No. 0912331, are sections 269C, 269F, and 269P (subsection 3) (269C, 269F, 269P(3)). Section 269F allows an application to be made to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. If the CEO is satisfied that the application is valid and meets the core criteria outlined in section 269C, they must make a written order (a TCO) declaring the goods in question to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies (269C, 269P(3)). A TCO results in a lower rate of customs duty being applied to the specified goods.
The Customs Act imposes several obligations on parties or entities it governs. Firstly, applicants must ensure their applications are made in good faith and meet the core criteria set out in section 269C, which includes demonstrating that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged (269C). The CEO is obligated to assess applications against these criteria and, if satisfied, make a TCO. The CEO must also publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application, inviting any person who believes there are reasons why the TCO should not be made to lodge a submission (269K(1)). The CEO must consider any submissions received before making a final decision.
Failure to comply with the provisions of the Customs Act can lead to various offences and penalties. Breaches of the Act, including the improper application for or granting of a TCO, may result in civil or criminal consequences. The exact penalties depend on the nature and severity of the breach. For example, knowingly making a false statement in an application for a TCO could lead to fines or imprisonment, as outlined in the relevant sections of the Customs Act and any associated regulations. The specific penalties are not detailed in the explanatory statement but would typically be found in the Customs Act and related legislative instruments.