Overview

The Tariff Concession Instrument No. 0912407, enacted in 2009, addresses the gap in tariff concessions for specific goods, as outlined under the Customs Act 1901. This legislation was introduced to facilitate tariff reductions for goods not produced domestically, thereby providing economic benefits to businesses and consumers. The instrument was enacted by the Parliament of Australia and is designed to encourage the importation of certain goods by reducing customs duty rates, which in turn aims to make these goods more competitively priced within the Australian market. The policy objective is to support industry sectors that are unable to produce certain goods locally by providing them with a tariff advantage, which is expected to stimulate economic activity and consumer choice.

Scope and Application

The Tariff Concession Instrument No. 0912407 applies to specific goods, in this case certain airless serum dispensers, and is governed under the Customs Act 1901. This Act allows for Tariff Concession Orders (TCOs) to be issued by the Chief Executive Officer of Customs (CEO) to provide a lower rate of customs duty on goods that meet certain criteria. Specifically, the Act applies to Tasmanian Organics Pty Ltd in their application for a TCO concerning their airless serum dispensers, which, once approved, will attract a duty rate of free, down from the general rate of 5%. The CEO must ensure that the goods are not substitutable by any goods produced in Australia and that the application meets the core criteria set out in the Act. The CEO must also publish a notice in the Gazette inviting submissions from any interested parties, although in this instance, no submissions were received. The TCO applies from the date of the application and benefits the rights of importers by allowing them to apply for a refund of duty on the goods imported since the TCO took effect, without imposing any liabilities on any person. The geographic and jurisdictional reach of the Customs Act 1901 is national, as it is a Commonwealth Act, and thus applies across Australia. The application and effect of the TCO are confined to the goods specified in the order and do not affect any person’s rights as at the date of registration, ensuring no disadvantage or liability is imposed on any individual or entity for actions taken prior to the TCO’s effective date. The Act’s application can be extended or restricted through subordinate instruments, although in this specific case, the TCO directly applies to the goods as declared by the CEO.

Key Provisions

The main operative sections of the Tariff Concession Instrument No. 0912407 under the Customs Act 1901 (sections 269C, 269F, 269P(3) and 269S(1)) allow for the Chief Executive Officer (CEO) of Customs to make a Tariff Concession Order (TCO) for certain goods, such as the airless serum dispensers applied for by Tasmanian Organics Pty Ltd. Section 269F allows a person to apply for a TCO if the goods are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. If the CEO is satisfied that the application meets the core criteria outlined in section 269C, they must make a written order (a TCO) under section 269P(3), declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. A TCO is taken to have come into force on the day the application for the TCO was lodged, as stipulated in subsection 269S(1). The Act imposes several obligations and requirements on the parties involved. Firstly, any person who wishes to apply for a TCO must ensure that the goods they seek to have a concession on are not listed in section 269SJ of the Act. The CEO has a duty to consider the application against the core criteria set out in section 269C. If the application meets these criteria, the CEO must publish a notice in the Gazette inviting any interested parties to submit any objections or reasons why the TCO should not be made (subsection 269K(1)). The CEO must also decide whether to make the TCO based on the application and any submissions received. Additionally, the CEO must ensure that the rights of existing parties are not adversely affected by the TCO, particularly in relation to any actions taken prior to the TCO coming into force. Failure to comply with the provisions of the Customs Act 1901 or the terms of a TCO can result in various penalties and consequences. For instance, if a person knowingly provides false or misleading information in an application for a TCO, they may be subject to civil or criminal penalties under the relevant sections of the Act. The specific penalties for such breaches are not detailed in the Explanatory Statement but generally could include fines or imprisonment, depending on the severity of the offence. The Act does not specify any particular penalties in this context, but the general provisions for penalties under the Customs Act 1901 apply. Additionally, while the explanatory statement does not explicitly mention offences or penalties related to the TCO itself, it is understood that breaches of the Customs Act 1901 or related regulations could result in financial penalties or legal action. The TCO does not impose any liabilities on any person other than the Commonwealth, ensuring that the rights of importers are protected and can benefit from duty refunds under paragraph 126(1)(r) of the Regulations. The TCO also ensures that no person other than the Commonwealth will be disadvantaged or subjected to liabilities for actions taken before the TCO came into force.