Overview

The Tariff Concession Instrument No. 0915428, enacted in 2009 under the Customs Act 1901, was introduced to address the need for tariff concessions on specific imported goods where no suitable Australian-produced alternatives exist. This instrument allows for a lower rate of customs duty on certain goods, as determined by the Chief Executive Officer of Customs, provided that the application meets the core criteria outlined in the Act. This initiative supports the policy objective of facilitating trade by reducing import costs for businesses that rely on specific goods not produced domestically. The instrument was created in response to an application by Saipem Comercio Pty Ltd for tariff concessions on certain subsea pile alignment frames, which was subsequently approved as no substitutable goods were being produced in Australia. The instrument was published in the Gazette, inviting submissions from interested parties, though none were received, and it came into force on the date of the application, 7 May 2009.

Scope and Application

The Tariff Concession Instrument No. 0915428 under the Customs Act 1901 applies specifically to goods for which a Tariff Concession Order (TCO) has been requested and granted. In this instance, the Act applies to certain subsea pile alignment frames that were the subject of an application by Saipem Comercio Pty Ltd. The scope of the Act encompasses the process of applying for a TCO and the subsequent decision-making by the Chief Executive Officer of Customs (CEO), who must determine if the application meets the core criteria for concession. The TCO mechanism allows for a lower rate of customs duty on goods specified in the order, provided that no substitutable goods are produced in Australia in the ordinary course of business. The instrument's jurisdiction extends across the Commonwealth of Australia, with the concession applying nationally to the specified goods. Notably, the Act excludes certain goods, as detailed in section 269SJ, from being subject to a TCO. The commencement of the TCO is effective from the date the application was lodged, and the TCO does not disadvantage any person by affecting their rights as at the date of registration or imposing liabilities for actions taken prior to the registration date.

Key Provisions

The main operative sections of this Tariff Concession Order (TCO) pertain to the creation and effect of the order itself. Section 269F of the Customs Act 1901 allows for an application to be made to the Chief Executive Officer of Customs (CEO) for a TCO in respect of specific goods. If the CEO is satisfied that the application meets the core criteria outlined in section 269C, they must make a written order (TCO) declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. This particular TCO, No. 0915428, made on 31 July 2009, applies to certain subsea pile alignment frames and declares that these goods are subject to item 50 of Schedule 4 to the Tariff, resulting in a duty-free rate for these goods. The obligations imposed by the Act on parties and entities governed by it are primarily concerned with the application process and the conditions that must be met for a TCO to be granted. The CEO must ensure 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. Furthermore, the CEO must be satisfied that the application meets the core criteria, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The CEO must also publish a notice in the Gazette, inviting any person who considers there are reasons why the TCO should not be made to lodge a submission. In this case, the CEO did not receive any submissions in response to this invitation. The Act also outlines the consequences and penalties for breaches. While the explanatory statement does not explicitly detail the penalties for breaches of the Customs Act 1901, the general legal framework would apply. This could potentially include civil and criminal penalties, with the specifics depending on the nature and severity of the breach. The maximum penalties could range from fines to imprisonment, depending on the offence. It is important to note that the TCO itself does not impose any liabilities on any person and does not affect the rights of a person as at the date of registration. Additionally, the TCO is taken to have come into force on the day on which the application for the TCO was lodged, as per subsection 269S(1) of the Act. This means that the rights of importers will be beneficially affected, and they 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 also ensures that it does not impose any liabilities on any person in respect of anything done or omitted to be done before the date of registration.