EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0915257
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.
Rio Tinto Aluminium Limited applied for a TCO in respect of certain filter elements or cartridges air intake on 06 May 2009.
Instrument
TCO No 0915257 was made on 24 July 2009. It declares that those certain filter elements or cartridges air intake 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. 0915257 is taken to have come into force on 06 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 Tariff Concession Instrument No. 0915257, enacted on 24 July 2009, amends the Customs Act 1901 to provide tariff concessions for certain filter elements or cartridges for air intake. This instrument was introduced to address the need for reduced customs duties on specific goods to support industries that do not have domestic production capabilities. The instrument was made under the authority of the Chief Executive Officer of Customs, following an application from Rio Tinto Aluminium Limited on 6 May 2009. The core criteria for a tariff concession order under section 269C of the Act were satisfied, as no substitutable goods were produced in Australia. The Tariff Concession Order No. 0915257 specifies that the general rate of duty of 5% on these goods is reduced to free, effective from the date of the application, 6 May 2009. The instrument does not adversely affect the rights of any person other than the Commonwealth and provides a refund mechanism for importers under the Customs Regulations.
Scope and Application
The Customs Act 1901, as amended by Tariff Concession Instrument No. 0915257, pertains to the application and approval process for Tariff Concession Orders (TCOs), which allow for reduced customs duty rates on specific goods. This instrument applies to the Chief Executive Officer of Customs (CEO) who must assess applications to determine if they meet the core criteria for tariff concessions. The process involves evaluating whether the goods in question are not produced in Australia and are not substitutes for locally produced goods. Upon meeting these criteria, the CEO is mandated to issue a TCO that specifies the lower duty rates applicable to the designated goods. This particular instrument was applied to filter elements or cartridges for air intake by Rio Tinto Aluminium Limited and became effective on the date the application was lodged, 6 May 2009. The concession does not retroactively impact any transactions or liabilities incurred before its effective date and specifically benefits importers by allowing them to claim refunds on duties paid on the affected goods imported since the concession's effective date.
Key Provisions
The Tariff Concession Order (TCO) No. 0915257 under the Customs Act 1901 (section 269F) pertains to certain filter elements or cartridges used for air intake. The main operative sections of this legislation require an application to be made to the Chief Executive Officer of Customs (CEO) by a person seeking tariff concessions (section 269F). If the CEO is satisfied that the application is valid and meets the core criteria (section 269C), a TCO is issued. For TCO No. 0915257, the CEO determined that the application met these criteria as no substitutable goods were being produced in Australia (section 269C). Consequently, the CEO issued the TCO on 24 July 2009, specifying that the certain filter elements or cartridges air intake are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995 (section 269P(3)). The TCO effectively reduces the duty on these goods from a general rate of 5% to free.
The Act imposes several obligations on the parties involved. For instance, section 269K(1) mandates the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid. This notice must invite any person who believes the TCO should not be made to submit their reasons to the CEO. In this case, no submissions were received (subsection 269K(1)). Additionally, section 269S(1) specifies that a TCO comes into force on the day the application is lodged. Thus, TCO No. 0915257 is effective from 6 May 2009.
The TCO No. 0915257 does not adversely affect the rights of any person (other than the Commonwealth) as they stood on the date of registration (subsection 269S(1)). Importers of the specified goods will benefit from this concession and can apply for a refund of duty on goods imported since the TCO came into force under paragraph 126(1)(r) of the Regulations. Importantly, the TCO does not impose any liabilities on any person.
Failure to comply with the requirements set out in the Customs Act 1901 and related regulations could result in penalties. While specific offences and penalties are not detailed in the provided excerpt, breaches of customs legislation generally attract civil or criminal penalties. Civil penalties can include fines, while criminal offences may lead to imprisonment. The maximum penalties for breaches of customs laws can vary widely depending on the severity of the offence, and it is essential to refer to the full text of the Customs Act 1901 and related instruments for precise details.