Overview

The Tariff Concession Instrument No. 0920586, enacted in 2009, is an instrument under the Customs Act 1901, aimed at facilitating the application of tariff concessions on specific goods. This instrument responds to applications for tariff concessions, such as the one submitted by Power Fasteners for certain silicone polymer sealant adhesives, which was accepted and processed by the Chief Executive Officer of Customs. The primary objective of this instrument is to ensure that the process for tariff concession applications is efficient and transparent, allowing for the reduction or elimination of customs duties on specified goods where appropriate. The instrument came into effect on 17 June 2009, the date the application was lodged, and it provides relief to importers by potentially allowing them to claim refunds for duties paid on the specified goods before the concession was applied. This legislative tool helps streamline trade by reducing administrative burdens and enhancing the competitiveness of imported goods in the Australian market.

Scope and Application

The Tariff Concession Instrument No. 0920586 under the Customs Act 1901 applies to the goods specified in the Instrument, namely certain silicone polymer sealant adhesive, and the entities or persons who import these goods into Australia. The scope of the Act includes the authority for the Chief Executive Officer of Customs to grant Tariff Concession Orders (TCOs) that provide for a reduced rate of customs duty on specific goods. This Act applies nationally across Australia and is enacted under the Commonwealth jurisdiction. The Act does not apply to goods specified in section 269SJ of the Customs Act 1901, which lists goods that cannot be subject to a TCO. The application for a TCO must meet core criteria, which include the absence of substitutable goods produced in Australia on the date of application. Once a TCO is granted, the concessional rate applies retroactively to the date of the application. The CEO must also publish a notice in the Gazette inviting any interested parties to submit objections, although in this instance, no submissions were received. The Instrument does not affect the rights of any person, other than the Commonwealth, in relation to actions taken before the registration date, nor does it impose any liabilities on any person.

Key Provisions

The primary operative sections of this legislation are sections 269C, 269F, 269P, and 269SJ of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of goods. Section 269C stipulates that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. If the CEO is satisfied that the application meets the core criteria, subsection 269P(3) requires the CEO to make a written order (a TCO) declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. Section 269SJ lists goods that cannot be subject to a TCO. In this case, the CEO was satisfied that the application for a TCO for certain silicone polymer sealant adhesive met the core criteria, and subsequently issued TCO No. 0920586, which applies to item 50 of Schedule 4 to the Tariff, resulting in a duty rate of free, down from the general rate of 5%. The Customs Act 1901 imposes several obligations and requirements on the parties and entities it governs. Firstly, the Act mandates that the CEO must decide whether a TCO application meets the core criteria, as outlined in section 269C. This involves determining whether any substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Secondly, under section 269K(1), the CEO must publish a notice in the Gazette inviting 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. Thirdly, the Act requires the CEO to make a written order (a TCO) if satisfied that the application meets the core criteria, as per subsection 269P(3). This written order specifies the prescribed item of Schedule 4 to the Customs Tariff Act 1995 that applies to the goods in question. The Customs Act 1901 also outlines the consequences of non-compliance with its provisions. While the Act does not explicitly state offences, penalties, or civil/criminal consequences for breach, the issuance of a TCO is subject to the CEO's satisfaction that the application meets the core criteria. If the CEO determines that the application does not meet the core criteria, they are not required to issue a TCO. Additionally, section 269S(1) of the Act provides that a TCO is taken to have come into force on the day on which the application for the TCO was lodged, ensuring that the rights of importers are beneficially affected. 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. 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 under paragraph 126(1)(r) of the Regulations. The TCO does not impose any liabilities on any person.