EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0913560
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.
Santos Pty Ltd applied for a TCO in respect of certain sub assembly pump support on 23 April 2009.
Instrument
TCO No 0913560 was made on 10 July 2009. It declares that those certain sub assembly pump support 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. 0913560 is taken to have come into force on 23 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 Customs Act 1901, enacted by the Australian Parliament, established a framework for the imposition of customs duties on imported goods. It introduced Tariff Concession Orders (TCOs) to provide relief from customs duty on certain goods under specific conditions, aiming to facilitate trade and support economic activities. The Tariff Concession Instrument No. 0913560, made on 10 July 2009, is an example of this legislative framework in action. This particular TCO was made in response to an application by Santos Pty Ltd for tariff concessions on certain sub assembly pump supports, which were declared to be exempt from the general rate of duty of 5%. The instrument was introduced to address the need for tariff concessions when no substitutable goods are produced in Australia, thereby ensuring that Australian businesses are not unduly disadvantaged in the global marketplace. The policy objective of this legislation is to provide tariff relief where appropriate, supporting the broader economic policy of encouraging trade and investment.
Scope and Application
The Tariff Concession Instrument No. 0913560, made under the Customs Act 1901, applies to Santos Pty Ltd in relation to certain sub assembly pump supports. This instrument specifically addresses the application of tariff concessions to these goods, allowing for a concessional rate of customs duty to be applied, effectively making the duty free. The instrument applies to goods that are not produced in Australia in the ordinary course of business and are not listed under section 269SJ of the Act, which excludes certain goods from tariff concession eligibility. Geographically, the application of this instrument is governed by Australian federal law, with the Chief Executive Officer of Customs responsible for the decision-making process. The instrument does not affect the rights of any person other than the Commonwealth and does not impose any liabilities on any person. Any exclusions or exemptions from the tariff concession are outlined within the Act itself, with no further exclusions or exemptions specified in this particular instrument.
Key Provisions
The Tariff Concession Instrument No. 0913560, under the Customs Act 1901, introduces a concession on customs duties for certain sub assembly pump supports. According to section 269P(3), if the Chief Executive Officer of Customs (CEO) determines that an application for a Tariff Concession Order (TCO) meets the core criteria, they must issue a written order declaring the goods subject to the TCO. Section 269C outlines that a TCO application meets the core criteria if, on the day the application was submitted, no substitutable goods were being produced in Australia in the ordinary course of business. In this instance, Instrument TCO No. 0913560, made on 10 July 2009, declared that certain sub assembly pump supports were goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applied, with the rate of duty being free instead of the general rate of 5%.
Entities and individuals governed by this Act must adhere to the stipulations regarding TCO applications and the criteria outlined in sections 269C, 269D, and 269E. Specifically, section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made. In this case, no submissions were received, leading to the issuance of the TCO. Additionally, under section 269S(1), the TCO is considered to have come into force on the date the application was lodged, which in this case was 23 April 2009. The rights of importers are beneficially affected, allowing them to apply for a refund of duty on goods imported since the effective date of the TCO.
The Act does not provide specific details about offences or penalties for breaches related to TCOs. However, general principles of the Customs Act 1901 apply, where breaches of the Act can lead to civil or criminal consequences. Civil penalties may include fines, while criminal penalties can result in imprisonment, depending on the nature and severity of the breach. The exact penalties would be determined in the context of the specific breach and relevant legal proceedings.