EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0923933
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.
RMT Asset Manage applied for a TCO in respect of certain motor vehicle drainage systems on 08 July 2009.
Instrument
TCO No 0923933 was made on 25 September 2009. It declares that those certain motor vehicle drainage systems 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. 0923933 is taken to have come into force on 08 July 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 Tariff Concession Instrument No. 0923933 was introduced under the Customs Act 1901 to address the specific needs of businesses seeking to import goods that are not produced domestically. Enacted by the Parliament of Australia, this instrument aims to provide a pathway for tariff concessions, thereby supporting industries that rely on imported goods. The instrument was designed to ensure that such imports are not subject to high customs duties, facilitating the availability of these goods in the Australian market and potentially lowering costs for businesses and consumers.
This instrument was introduced in response to an application by RMT Asset Manage for a Tariff Concession Order (TCO) regarding certain motor vehicle drainage systems. The application was processed by the Chief Executive Officer of Customs, who determined that no substitutable goods were produced in Australia, thereby meeting the core criteria for the concession. The instrument, which came into force on 8 July 2009, grants a tariff concession for these specific goods, reducing the duty rate from the general rate of 5% to free, effectively benefiting importers who can apply for refunds of duty paid on these goods since the effective date of the concession.
Scope and Application
The Tariff Concession Instrument No. 0923933 under the Customs Act 1901 applies to specific goods, namely certain motor vehicle drainage systems, as determined by the Chief Executive Officer of Customs (CEO). The CEO, upon receiving a valid application, can grant a Tariff Concession Order (TCO) that allows for a lower rate of customs duty on these goods. The application of this legislation is primarily concerned with the eligibility and assessment of goods for tariff concessions, ensuring that such concessions do not apply to goods that could be substituted by Australian-produced goods. The geographic reach of this Act is national, as it applies across Australia, governed by the overarching provisions of the Customs Act 1901. The Act does not extend to goods specified in section 269SJ of the Customs Act, which outlines those goods that are ineligible for TCOs. The CEO is required to consult with the public by publishing notices in the Gazette, inviting submissions from any person who believes a TCO should not be granted, although no submissions were received for this particular instrument. The TCO takes effect from the date the application was lodged, and it does not affect the rights of any person as at the date of registration, nor does it impose any liabilities on any person other than the Commonwealth.
Key Provisions
The primary operative sections of Tariff Concession Instrument No. 0923933 under the Customs Act 1901 (section 269P(3)) establish the conditions under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (section 269F). Specifically, a TCO can be applied for and granted if the CEO determines that no substitutable goods are produced in Australia and that the application meets the core criteria (section 269C). Once the CEO is satisfied that these criteria are met, they must make a written order specifying that the goods in question are subject to a prescribed tariff item (section 269P(3)). This particular TCO, number 0923933, applies to certain motor vehicle drainage systems and declares that they are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, resulting in a duty rate of free instead of the general rate of 5%.
The obligations and requirements imposed by the Act on the parties involved are primarily on the CEO, who must assess the validity of the TCO application and decide whether it meets the core criteria. The CEO must also publish a notice in the Gazette inviting any person who believes the TCO should not be made to submit their reasons (subsection 269K(1)). In this case, the CEO did not receive any submissions in response to the published notice. Additionally, the Act ensures that the TCO does not affect the rights of any person as at the date of registration and does not impose any liabilities on any person (subsection 269S(1)).
In terms of the consequences of breaching any provisions of this legislation, the Act does not specify any specific offences, penalties, or civil or criminal consequences for non-compliance with the TCO process. However, if a TCO is granted in error or there is any fraudulent activity involved in the application process, this could potentially lead to legal action or penalties under other relevant legislation, such as the Crimes Act 1914. The primary focus of the Customs Act 1901 in this context is to ensure that the process for granting TCOs is transparent and fair, rather than to impose punitive measures for non-compliance.