EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0932694
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 turbo generator parts on 03 September 2009.
Instrument
TCO No 0932694 was made on 27 November 2009. It declares that those certain turbo generator parts 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. 0932694 is taken to have come into force on 03 September 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, provides a framework for the administration of customs and excise, including the imposition of duties and taxes on imported goods. The Act was introduced to address the need for efficient and effective management of customs duties and to facilitate trade. Specifically, the Act enables the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs), which reduce or eliminate customs duty on certain goods, thereby supporting industry competitiveness and economic policy objectives. The Tariff Concession Instrument No. 0932694 was made under this framework to provide tariff concessions on certain turbo generator parts, aiming to lower the cost of these goods for businesses that import them, thus supporting their operations and potentially aiding broader economic growth.
Scope and Application
The Tariff Concession Instrument No. 0932694 under the Customs Act 1901 applies to entities or persons seeking tariff concessions for specific goods, namely certain turbo generator parts, in this instance applied for by Bluescope Steel. The Act pertains to the federal level, as it is an instrument made under Commonwealth legislation. The scope of this Act is targeted at ensuring that when no substitutable goods are produced in Australia, a lower customs duty rate can be applied to imported goods. The instrument came into force on the date the application was lodged, which was 03 September 2009. The application of the TCO does not affect any existing rights of non-Commonwealth persons, ensuring that no disadvantages or liabilities are imposed on them. However, it does provide benefits to importers, allowing them to apply for a refund of duty on goods imported since the effective date of the TCO. Any exclusions or exemptions are determined by the core criteria outlined in the Customs Act, particularly focusing on whether substitutable goods are produced in Australia. The application and scope of the TCO may be further defined or modified through subordinate instruments as required.
Key Provisions
The main operative sections of this legislation include section 269C of the Customs Act 1901, which sets out the core criteria that an application for a Tariff Concession Order (TCO) must meet. Specifically, section 269C stipulates that a TCO application is valid if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B provides definitions for terms such as "goods produced in Australia," "ordinary course of business," and "substitutable goods," which are crucial for determining the eligibility of an application. Furthermore, section 269F allows any person to apply to the Chief Executive Officer (CEO) of Customs for a TCO in respect of specific goods, provided that those goods are not prohibited under section 269SJ.
The obligations and requirements imposed by the Act on the parties involved are primarily centred around the application and assessment process for TCOs. The CEO of Customs is obligated to assess the validity of a TCO application against the core criteria outlined in section 269C. If the CEO is satisfied that the application meets these criteria, they must make a written TCO declaring that the specified goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. Additionally, the CEO is required to publish a notice in the Gazette inviting submissions from any person who may have reasons why the TCO should not be made. In the case of TCO No. 0932694, the CEO did not receive any submissions in response to the published notice.
Offences, penalties, or civil and criminal consequences for breach of the Act are not explicitly detailed in the provided text. However, the general framework of the Customs Act 1901 implies that failure to comply with the provisions could result in legal action or penalties as stipulated by the broader customs legislation. Given that the Act does not specify maximum penalties in this instance, any violations would likely be subject to the general penalties outlined in the Customs Act 1901, which can include fines and other civil or criminal sanctions.