EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0923934
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.
reliance worldwide applied for a TCO in respect of certain fire hose fittings on 08 July 2009.
Instrument
TCO No 0923934 was made on 25 September 2009. It declares that those certain fire hose fittings 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. 0923934 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 Customs Act 1901, enacted by the Australian Parliament, was amended to introduce a scheme for Tariff Concession Orders (TCOs) to provide relief on customs duties for certain imported goods. This legislative instrument was introduced to address the problem of ensuring that Australian industries can access necessary goods at a lower cost, particularly when there are no substitutable goods produced in Australia. The policy objective of this scheme is to facilitate the availability of goods for businesses and consumers by lowering the cost of importing certain items. The Tariff Concession Instrument No. 0923934, made on 25 September 2009, exemplifies this scheme by providing a tariff concession for specific fire hose fittings, reducing the duty rate from 5% to free, thereby benefiting importers who can now apply for refunds on duties paid on these goods since the effective date of the concession, 8 July 2009.
Scope and Application
The Tariff Concession Instrument No. 0923934 under the Customs Act 1901 applies to individuals or entities seeking tariff concessions for certain fire hose fittings. This instrument was issued after Reliance Worldwide applied for a Tariff Concession Order (TCO) on 8 July 2009, which the Chief Executive Officer of Customs approved on 25 September 2009. The application of the TCO is contingent upon the absence of substitutable goods produced in Australia at the time the application was lodged. The geographic reach of the Act is national, applying across Australia, and its application is not restricted by state or territory boundaries. The instrument excludes any goods specified in section 269SJ of the Customs Act, which lists goods ineligible for tariff concessions. The application of the Act may also be extended or restricted through subordinate instruments, such as regulations under the Customs Act. The TCO came into force on the date the application was lodged, and it provides a zero percent duty rate for the specified fire hose fittings, which contrasts with the general rate of 5% for such goods.
Key Provisions
The main operative sections of the Customs Act 1901, specifically the Tariff Concession Instrument No. 0923934, revolve around the creation and enforcement of Tariff Concession Orders (TCOs). According to section 269F, a person may apply to the Chief Executive Officer (CEO) of Customs for a TCO for certain goods. Section 269C stipulates that a TCO application meets the core criteria if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. If the CEO is satisfied with the application, they must make a written order (a TCO) declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (section 269P(3)).
In terms of obligations and requirements, the Act imposes certain duties on the parties involved. The CEO must publish a notice in the Gazette inviting submissions if a TCO application is accepted as valid (subsection 269K(1)). The CEO must also ensure that no substitutable goods are produced in Australia and that the goods in question are not specified in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. If these criteria are met, the CEO is required to make a TCO.
The Act also outlines the consequences for non-compliance or breaches. If the CEO fails to follow the required procedures or makes an improper TCO, this could lead to legal challenges or penalties. Although the explanatory statement does not specify maximum penalties, breaches of the Customs Act generally can result in substantial fines or imprisonment, depending on the severity of the violation. Additionally, any person adversely affected by an improper TCO could seek legal remedies to rectify the situation.
In the specific case of TCO No. 0923934, the CEO determined that the application met the core criteria, as no substitutable goods were produced in Australia for the specified fire hose fittings. The TCO declared these goods to be 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 CEO published a notice in the Gazette and did not receive any submissions opposing the TCO. The TCO came into force on the date the application was lodged, 08 July 2009, and it does not impose any liabilities on any person. Importers of these goods can apply for a refund of duty on goods imported since the effective date of the TCO.