Overview

The Customs Act 1901, enacted by the Parliament of Australia, established a framework through which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO). This legislative instrument was introduced to address the problem of ensuring that Australian industries can access certain goods without incurring prohibitive customs duties, thus encouraging economic growth and competition by providing tariff relief on specific goods not produced domestically. The Tariff Concession Instrument No. 0920147, made under this Act, aims to provide a tariff concession on certain dextrose anhydrous by setting the duty rate to free, where the general duty rate is 4%, reflecting the policy objective of supporting industries that rely on importing these goods for their operations.

Scope and Application

The Tariff Concession Instrument No. 0920147 under the Customs Act 1901 applies to specific goods, in this case certain dextrose anhydrous, and concerns the application of a lower rate of customs duty for these goods. The instrument was enacted following an application by Scalzo Trading on 15 June 2009, and it became effective on the same date. The Chief Executive Officer of Customs (CEO) made this decision after ensuring that the application met the core criteria set out in the Act, specifically confirming that no substitutable goods were produced in Australia on the date the application was lodged. The CEO's decision to grant the concession was also influenced by the absence of any submissions opposing the concession, as required by the Act. The instrument's scope is limited to the goods specified in the application and does not affect the rights of any person other than the Commonwealth, nor does it impose any new liabilities. Importers of these goods can benefit from this concession by applying for a refund of duty on goods imported since the date the Tariff Concession Order (TCO) was taken to have come into force. The application of this TCO is national, as it pertains to the Customs Act 1901, which has a Commonwealth reach.

Key Provisions

The Tariff Concession Instrument No. 0920147 (the Instrument) under the Customs Act 1901 (the Act) grants a tariff concession on certain dextrose anhydrous. This concession applies from the date the application for the concession was lodged, which was 15 June 2009 (subsection 269S(1) of the Act). The Instrument declares that the certain dextrose anhydrous are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) applies, making the rate of duty on these goods free (subsection 269P(3) of the Act). This tariff concession is contingent on the Chief Executive Officer of Customs (the CEO) being satisfied that no substitutable goods were produced in Australia on the day the application was lodged (section 269C of the Act). The CEO must make a written order (a Tariff Concession Order, or TCO) specifying that the goods in question are subject to the prescribed tariff item (subsection 269P(3) of the Act). Under the Act, any person may apply to the CEO for a TCO in respect of goods (section 269F of the Act). The CEO must then determine if the application meets the core criteria, which includes ensuring that the goods are not specified in section 269SJ of the Act as those that cannot be subject to a TCO (subsection 269K(1) of the Act). The CEO must also ensure that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business (section 269C of the Act). If the application meets these criteria, the CEO must make the TCO. The CEO is required to publish a notice in the Gazette inviting any interested parties to submit any reasons why the TCO should not be made (subsection 269K(1) of the Act). In this case, no submissions were received in response to the notice. The Instrument imposes certain obligations on the parties it governs. The CEO must assess whether the application for a TCO meets the core criteria and, if so, make the TCO. The CEO must also publish a notice in the Gazette to invite submissions from interested parties. Importers of the goods subject to the TCO have the right to apply for a refund of duty on goods imported since the TCO is taken to have come into force (paragraph 126(1)(r) of the Regulations). The TCO does not affect the rights of any 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. There are no specific offences, penalties, or civil/criminal consequences mentioned in the Instrument for breach of its provisions. However, under the Customs Act 1901, any person who contravenes a provision of the Act, or any condition of a TCO, may be liable to a penalty (section 270 of the Act). The maximum penalty for a corporation is generally 50 penalty units (approximately AUD 10,000 as of 2023) and for an individual is generally 10 penalty units (approximately AUD 2,000 as of 2023). The penalty units are adjusted periodically to account for inflation. Additionally, any person who knowingly makes a false or misleading statement in an application for a TCO may be subject to criminal prosecution (section 270 of the Act).