EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0922177
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.
Bluescope Steel applied for a TCO in respect of certain cold rolled or cold reduced steel on 29 June 2009.
Instrument
TCO No 0922177 was made on 18 September 2009. It declares that those certain cold rolled or cold reduced steel 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. 0922177 is taken to have come into force on 29 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 Australian Parliament, establishes a framework for the administration of customs duties and includes provisions for Tariff Concession Orders (TCOs) to provide relief from certain duties. This legislation was introduced to address the need for a streamlined process to provide tariff concessions for specific goods, ensuring that such concessions are granted only when no suitable Australian-made alternatives exist. The Tariff Concession Instrument No. 0922177, made by the Chief Executive Officer of Customs, applies to certain cold rolled or cold reduced steel products. This instrument was enacted to provide tariff relief for these specific goods, reducing the duty from the general rate of 5% to zero, thereby facilitating their importation and potentially benefiting the rights of importers. The instrument was made following an application by Bluescope Steel, and after no objections were received during the consultation period, it came into force on 29 June 2009.
Scope and Application
The Tariff Concession Instrument No. 0922177, made under the Customs Act 1901, applies to certain cold rolled or cold reduced steel, specifically those defined in item 50 of Schedule 4 to the Customs Tariff Act 1995. This Act is a Commonwealth legislation and applies across Australia. The Instrument was made in response to an application by Bluescope Steel and came into force on 29 June 2009, the date the application was lodged. The primary effect of the Instrument is to declare that the specified steel products are eligible for tariff concessions, resulting in a free rate of duty instead of the general 5% rate. The Instrument does not disadvantage any person, nor does it impose liabilities on any person, and it respects the rights of individuals and entities as they stood prior to the Instrument's registration. Notably, the Instrument does not exclude any particular groups or entities from its application, but it does not apply to goods specified in section 269SJ of the Customs Act 1901, which lists goods that cannot be subject to a Tariff Concession Order. Any further application or extension of the Instrument's provisions may be made through subordinate instruments, though the specific TCO No. 0922177 does not extend its application beyond the specified steel products.
Key Provisions
The key provisions of the Tariff Concession Instrument No. 0922177, under the Customs Act 1901, include the granting of tariff concessions for certain goods specified in the instrument (sections 269C, 269F, and 269P(3)). Specifically, section 269F allows for an application to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO), which, if approved, allows for a lower rate of customs duty on the goods specified in the TCO. In this instance, the CEO was satisfied that the application met the core criteria, as no substitutable goods were being produced in Australia (section 269C), and accordingly made a TCO for certain cold rolled or cold reduced steel (section 269P(3)). This order specifies that these goods are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, resulting in a duty rate of free, down from the general rate of 5% (section 269P(3)).
The obligations imposed by the Customs Act 1901 on the parties involved include the requirement for the CEO to consider the application and ensure it meets the core criteria before making a TCO (section 269C). The CEO must also publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made (subsection 269K(1)). In this case, no submissions were received in response to the published notice. Additionally, the TCO must not affect the rights of any person other than the Commonwealth as at the date of registration, ensuring no disadvantage or liabilities are imposed on any person for actions taken before the TCO's registration date (subsection 269S(1)).
Offences and penalties under the Customs Act 1901 may arise from breaches of the Act or the associated regulations. While the explanatory statement does not detail specific penalties, breaches of customs legislation can generally lead to civil or criminal consequences. Civil penalties may include fines or other financial penalties, while criminal penalties can result in imprisonment, reflecting the seriousness of non-compliance with customs regulations. The exact penalties depend on the nature and severity of the breach, as outlined in the relevant sections of the Customs Act 1901 and associated regulations.