EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0914504
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.
Power Fasteners Australasia Pty Ltd applied for a TCO in respect of certain concrete and/or masonry anchors on 1 May 2009.
Instrument
TCO No 0914504 was made on 15 October 2009. It declares that those certain concrete and/or masonry anchors 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. 0914504 is taken to have come into force on 1 May 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, serves as a foundational piece of legislation governing customs and excise duties, and it includes provisions for Tariff Concession Orders (TCOs) under Part XVA. These orders provide reduced customs duty rates for certain imported goods, provided no substitutable goods are produced in Australia. The instrument F2011L01004, also known as Tariff Concession Instrument No. 0914504, was introduced to address the specific need of lowering customs duties for certain concrete and/or masonry anchors, which were identified as being essential for various industries without any Australian-made alternatives. The objective of this instrument was to ensure that these critical goods could be imported at a reduced duty rate, thereby supporting industry needs and potentially enhancing economic efficiency by reducing costs for businesses reliant on these imports. The instrument was made by the Chief Executive Officer of Customs after a formal application process and subsequent assessment of the core criteria set out in the Customs Act.
Scope and Application
The Tariff Concession Instrument No. 0914504, under the Customs Act 1901, applies to specific concrete and/or masonry anchors, facilitating a concession in the customs duty rate for these goods. The Act allows for Tariff Concession Orders (TCOs) to be made by the Chief Executive Officer of Customs, providing lower duty rates for certain imported goods if no substitutable goods are produced in Australia in the ordinary course of business. The TCO No. 0914504 applies to the concrete and/or masonry anchors specified in the application by Power Fasteners Australasia Pty Ltd, and it was made effective from 1 May 2009, the date the application was lodged. This TCO does not disadvantage any person by affecting their rights as they existed on the date of registration, and it also does not impose any new liabilities. Importers of these goods can benefit from this concession by applying for a refund of duty on imports since the effective date of the TCO. The application of this Act is Commonwealth-wide, extending across all states and territories of Australia.
Key Provisions
The Tariff Concession Instrument No. 0914504, made under the Customs Act 1901 (the Act), pertains to a Tariff Concession Order (TCO) for certain concrete and/or masonry anchors. This Instrument, declared effective from 1 May 2009, provides a concession on the customs duty applied to these goods. According to section 269F of the Act, an application for a TCO can be submitted to the Chief Executive Officer of Customs (the CEO). If the application does not pertain to goods excluded under section 269SJ and meets the criteria set out in section 269C, the CEO must make a written order. In this case, item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, setting the duty rate at free instead of the general 5%.
The Act imposes several obligations on parties involved with the TCO. Firstly, the CEO must ensure that the application does not involve goods excluded by section 269SJ and must confirm that no substitutable goods are produced in Australia as per section 269C. Once the TCO is made, the CEO must also publish a notice in the Gazette under subsection 269K(1) of the Act, inviting any interested parties to lodge submissions against the TCO. Additionally, importers of the specified goods can apply for a refund of duty paid on those goods since the effective date of the TCO, as per paragraph 126(1)(r) of the Regulations.
Breaching the provisions of the Customs Act 1901 can lead to various consequences. Under section 272 of the Act, any person who contravenes the Act or the Regulations may be subject to penalties. The Act does not specify maximum penalties but generally outlines that penalties can include fines and, in severe cases, imprisonment. It is important to note that the TCO does not impose any liabilities on any person other than the Commonwealth and does not affect the rights of any person as at the date of registration to the detriment of that person.