Overview

The Tariff Concession Instrument No. 0920259 was enacted in 2009 under the Customs Act 1901 to address the need for a streamlined process in reducing customs duties on specific imported goods, where no Australian-made alternatives exist. This instrument was introduced to provide a more efficient mechanism for granting tariff concessions, ensuring that businesses importing goods that are not produced domestically can benefit from lower customs duties, thereby potentially lowering costs and increasing competitiveness. The instrument was made by the Chief Executive Officer of Customs in accordance with the Act, following an application from Clorox Australia for a tariff concession on certain polyethylene film in rolls. The policy objective of this measure is to support Australian industries by preventing the establishment of local production for goods that are already being imported, while also providing consumers with access to a broader range of competitively priced products.

Scope and Application

The Tariff Concession Instrument No. 0920259, made under the Customs Act 1901, applies to specific goods—in this case, certain polyethylene films in rolls—for which a Tariff Concession Order (TCO) was applied and approved by the Chief Executive Officer of Customs. The Act allows for reduced customs duty rates on goods that meet the criteria for a TCO, provided no substitutable goods are produced in Australia in the ordinary course of business. This legislation directly benefits entities such as Clorox Australia, which applied for and received the concession, enabling them to import these goods duty-free. The instrument's reach is national, applying across Australia as per the federal jurisdiction of the Customs Act. Notably, the TCO does not affect the rights of any person adversely as it only applies prospectively from the date of the application, and it does not impose any new liabilities on individuals or entities beyond those already stipulated in the Act. The TCO was made effective from the date of application, 15 June 2009, and no submissions were received in opposition to it.

Key Provisions

The main operative sections of Tariff Concession Instrument No. 0920259 under the Customs Act 1901, specify the conditions and procedures for making a Tariff Concession Order (TCO) (sections 269C, 269F, 269P). Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of goods, provided the goods are not specified in section 269SJ, which lists goods that cannot be subject to a TCO. If the CEO is satisfied that the application meets the core criteria outlined in section 269C, they must make a written order (a TCO) (section 269P). The CEO must also publish a notice in the Gazette inviting submissions if any person believes the TCO should not be made (subsection 269K(1)). The TCO in question, No. 0920259, was made on 4 September 2009, declaring that certain polyethylene film in rolls are goods to which item 50 of Schedule 4 to the Tariff applies, as no substitutable goods were produced in Australia, thus allowing these goods to be imported tariff-free. The Act imposes several obligations on the parties involved. Firstly, it requires the CEO to carefully evaluate each TCO application to ensure it meets the core criteria, particularly confirming that no substitutable goods are being produced in Australia at the time of the application (section 269C). Upon accepting an application as valid, the CEO must promptly publish a notice in the Gazette (subsection 269K(1)), soliciting any submissions from interested parties regarding the proposed TCO. Once the CEO decides to issue a TCO, they must do so in writing and specify the applicable tariff item (section 269P). Additionally, the Act ensures that the TCO does not affect the rights of any person, except the Commonwealth, as at the date of registration, to their disadvantage or to impose any new liabilities (subsection 269S(1)). Importers of the goods subject to the TCO can apply for a refund of duty on goods imported since the TCO came into force (paragraph 126(1)(r) of the Regulations). Any breach of the provisions set out in the Customs Act 1901 may result in various penalties and consequences. For instance, incorrect or fraudulent applications for TCOs could lead to administrative actions, including fines or other penalties as determined by the relevant authorities. Additionally, any person found to be deliberately misapplying the provisions of the Act, including the misuse of TCOs, may face legal consequences. The exact penalties can vary depending on the nature and severity of the breach, but they could include substantial fines, imprisonment, or both, depending on the specific offence and the jurisdiction in which it is prosecuted. It is important for all parties to comply with the requirements and obligations set out in the Act to avoid such adverse outcomes.