EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0918827
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.
Oi Asia Pacific applied for a TCO in respect of certain glass bottle moulds on 03 June 2009.
Instrument
TCO No 0918827 was made on 28 August 2009. It declares that those certain glass bottle moulds 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. 0918827 is taken to have come into force on 03 June 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, provides a framework for the administration of customs and excise through various mechanisms, including Tariff Concession Orders (TCOs). The Act was introduced to streamline the process of granting tariff concessions on imported goods, thereby facilitating trade and reducing costs for businesses. TCO No 0918827, made under the authority of the Customs Act 1901, addresses the specific need of Oi Asia Pacific to import certain glass bottle moulds without incurring customs duty. The policy objective behind this legislation is to support economic efficiency by reducing import costs for goods that cannot be produced domestically, thus encouraging trade and investment. The Tariff Concession Order was effective from the date of application, 3 June 2009, and no submissions opposing the concession were received, indicating broad acceptance of the measure.
Scope and Application
The Tariff Concession Instrument No. 0918827, issued under the Customs Act 1901, pertains to the granting of tariff concessions on specific goods. This Act applies to any person or entity that wishes to import goods that are eligible for a tariff concession order, as determined by the Chief Executive Officer of Customs. The application of the Act is national in scope, as it operates under the authority of the Commonwealth of Australia. The primary focus of this legislation is to allow for reduced customs duties on certain imported goods, provided they meet the core criteria outlined in the Act, such as the absence of substitutable goods produced in Australia. The exclusions to this legislation include goods specified in section 269SJ of the Act, which cannot be subject to a tariff concession order. The application and interpretation of this Act may be further refined through subordinate instruments, which provide additional guidelines and definitions.
Key Provisions
The Tariff Concession Order (TCO) No. 0918827 made under the Customs Act 1901 applies to certain glass bottle moulds and declares that they are subject to a concessional rate of customs duty as specified in item 50 of Schedule 4 to the Customs Tariff Act 1995. This means that, under section 269P(3), if the Chief Executive Officer (CEO) of Customs is satisfied that no substitutable goods were produced in Australia on the day the application was lodged (section 269C), they must make a written order granting the tariff concession. In this instance, the general rate of duty on these goods is reduced to free of charge, as per the concession granted.
The process for applying for a TCO is outlined in section 269F of the Customs Act 1901, which allows a person to apply to the CEO for a concession. The CEO must ensure that the application does not relate to goods specified in section 269SJ of the Act, which are ineligible for a TCO. Once the application is deemed valid, the CEO is required under section 269K(1) to publish a notice in the Gazette inviting any interested parties to lodge submissions if they believe there are reasons why the TCO should not be made. In this case, no submissions were received. The TCO comes into effect on the day the application was lodged, as per subsection 269S(1), which in this instance is 03 June 2009.
Entities subject to this TCO must comply with the requirements of the Customs Act 1901 and the Customs Tariff Act 1995. Importers of the glass bottle moulds, for example, can apply for a refund of duty paid on these goods imported since the TCO came into effect, under paragraph 126(1)(r) of the Regulations. The TCO does not impose any new liabilities on any person and does not affect the rights of any person as at the date of registration, except to the beneficial effect of the tariff concession.
Failure to comply with the requirements of the Customs Act 1901 or the terms of the TCO may result in civil or criminal penalties. The Act provides for a range of penalties, including fines and imprisonment, for breaches of the customs laws. The maximum penalties for serious breaches can be substantial, reflecting the seriousness of evading customs duties or otherwise contravening the Act. It is important for all parties involved to understand and adhere to the provisions of the TCO and the underlying legislation to avoid any potential legal consequences.