EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0924411
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.
Urban Energy Trust applied for a TCO in respect of certain solar heater collector tubes on 10 July 2009.
Instrument
TCO No 0924411 was made on 25 September 2009. It declares that those certain solar heater collector tubes 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. 0924411 is taken to have come into force on 10 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 Parliament of Australia, provides a framework for the administration of customs duties and includes provisions for Tariff Concession Orders (TCOs). These orders enable the application of a lower rate of customs duty on certain goods, as specified by the Chief Executive Officer of Customs (CEO) under section 269F of the Act. Enacted to address the need for tariff concessions in specific cases, the Act allows for reduced duty rates on goods that are not substitutable by Australian-produced goods, as outlined in section 269C. The primary policy objective is to facilitate the import of goods that are not domestically produced, thereby potentially lowering costs and encouraging market competition. The instrument number F2010L00397, issued on 25 September 2009, is an example of such a concession, granting a duty-free status to certain solar heater collector tubes, which had a general duty rate of 5%. This instrument, effective from 10 July 2009, was made following an application by Urban Energy Trust and no objections were received during the consultation period.
Scope and Application
The Tariff Concession Instrument No. 0924411 under the Customs Act 1901 applies to the application process for Tariff Concession Orders (TCOs) concerning certain solar heater collector tubes. The Act applies to any person who may seek a TCO for goods not produced in Australia, provided that these goods do not fall under the specified exclusions outlined in section 269SJ. The scope of the Act is national, as it operates under the authority of the Commonwealth and affects customs duty rates across Australia. The Act does not impose any new liabilities on persons other than the Commonwealth and does not disadvantage existing rights accrued before the instrument’s registration. The application process involves the Chief Executive Officer of Customs determining whether the core criteria are met, which includes ensuring that no substitutable goods are produced in Australia. The TCO applies to the specific goods identified in the instrument, which in this case are solar heater collector tubes, granting them a lower rate of customs duty compared to the general rate.
Key Provisions
The main operative sections of this legislation pertain to Tariff Concession Orders (TCOs) under the Customs Act 1901. Section 269F allows for applications to the Chief Executive Officer of Customs (CEO) for a TCO, provided the goods do not fall under the exclusions listed in section 269SJ. If an application is made and it meets the core criteria outlined in section 269C, the CEO must issue a TCO as per section 269P(3). This particular TCO No. 0924411, issued on 25 September 2009, applies to certain solar heater collector tubes, declaring that they are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, resulting in a duty rate of free, down from the general rate of 5%.
The obligations imposed by this Act on the parties it governs are primarily centered around the application and assessment process for TCOs. The applicant must ensure their application complies with the core criteria specified in the Act. For the CEO, the obligations include accepting valid applications, assessing them against the criteria, and publishing notices in the Gazette inviting submissions from interested parties, as stipulated in section 269K(1). If the CEO is satisfied that the application meets the core criteria, they are mandated to issue a written TCO, as per section 269P(3). The CEO must also ensure that the TCO does not adversely affect any pre-existing rights of persons other than the Commonwealth, as per the commencement provisions in section 269S(1).
In terms of offences, penalties, or consequences for breach, the Customs Act 1901 does not explicitly outline specific offences or penalties related to TCOs in the provided text. However, general provisions within the Act likely apply to any breaches of customs regulations, which could result in civil or criminal penalties. These could include fines or imprisonment, depending on the severity of the breach. The precise penalties would depend on other sections of the Customs Act and associated regulations, which are not detailed in the provided text.