Overview

The Tariff Concession Instrument No. 0925655, enacted in 2009 under the Customs Act 1901, addresses the need to provide tariff concessions for specific goods that are not produced in Australia and for which there are no substitutable alternatives. This instrument was introduced by the Chief Executive Officer of Customs, who has the authority to make Tariff Concession Orders (TCOs) that lower the customs duty rates for certain goods. The policy objective is to facilitate the importation of these goods by ensuring that the Australian market is not disadvantaged by the absence of local production and to provide relief to importers by reducing the duty burden on these specific items. The instrument came into force on the date the application was lodged, which was 20 July 2009, and does not retroactively affect the rights or impose liabilities on any person other than the Commonwealth.

Scope and Application

The Tariff Concession Instrument No. 0925655 under the Customs Act 1901 applies to specific pre-treatment plant goods that Water Corporation sought a tariff concession for. The instrument was enacted to facilitate the concession, granting free customs duty on these goods as no substitutable goods are produced in Australia, thereby meeting the core criteria outlined in the Act. The legislation pertains to the importation of these goods, and it applies across the Commonwealth of Australia, with its scope extending to any entity or person importing the specified goods. The Act does not impose any liabilities on any person and does not disadvantage anyone other than the Commonwealth, while potentially benefiting importers by allowing them to apply for a refund of duty on goods imported since the date the TCO is considered to have come into force. Any subordinate instruments would further define the application and operational specifics of the concession.

Key Provisions

The Tariff Concession Order (TCO) No. 0925655 under the Customs Act 1901 (section 269P) is a significant legislative instrument that applies a concessional rate of customs duty on certain pre treatment plant, as declared by the Chief Executive Officer of Customs (CEO). The TCO was made on 9 October 2009 and is effective from 20 July 2009, the date the application was lodged (subsection 269S(1)). This order applies to pre treatment plant goods specified in item 50 of Schedule 4 to the Customs Tariff Act 1995, and it declares that these goods are subject to a duty-free rate, down from the general rate of 5%. The application process for a TCO requires that the applicant, in this case Water Corporation, must ensure that the goods in question are not specified in section 269SJ of the Customs Act, which lists goods that cannot be subject to a TCO (section 269F). The CEO must also be satisfied that the goods meet the core criteria specified in section 269C, which mandates that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Substitutable goods are defined under section 269D as goods produced in Australia that are put, or are capable of being put, to a use corresponding to the goods in the TCO application. In this instance, the CEO was satisfied that no substitutable goods were produced in Australia for the pre treatment plant in question, thereby meeting the core criteria. The CEO's decision to grant the TCO was also subject to the requirement under subsection 269K(1) to publish a notice in the Gazette, inviting any person who might oppose the TCO to lodge a submission. No submissions were received in response to this notice, further facilitating the CEO's decision. The obligations imposed by this Act on the parties include the requirement for the CEO to thoroughly assess the application against the specified criteria and to ensure transparency by inviting submissions from interested parties. For Water Corporation, the benefit of this TCO is the concessional duty rate, which translates to significant savings on customs duty for the importation of pre treatment plant. Importers of these goods can also apply for a refund of duty paid on imports since the TCO came into effect, as permitted under paragraph 126(1)(r) of the Regulations. Regarding penalties and consequences for breach, the Customs Act does not specify particular offences or penalties related to the making or misuse of a TCO in this context. However, general provisions in the Act could apply if there is any fraudulent activity or misrepresentation in the application process. These might include fines or imprisonment as stipulated under other relevant sections of the Act. The TCO itself does not impose any liabilities on any person other than the Commonwealth, ensuring that the rights of other parties are not adversely affected by its implementation.