Overview

The Tariff Concession Instrument No. 0942025 was enacted in 2010 under the Customs Act 1901 to address the specific issue of tariff concessions for certain goods not produced domestically. This legislation was introduced to provide relief from customs duties for goods that are not manufactured in Australia, thereby encouraging the import of such goods by reducing their cost. The instrument was made by the Chief Executive Officer of Customs following an application by Orica Australia Pty Ltd for a tariff concession on certain emulsion explosives. The policy objective is to support the import of goods that cannot be substitutively produced in Australia, thereby facilitating trade and potentially lowering costs for businesses and consumers. The instrument does not affect the rights of any person as at the date of registration and does not impose any new liabilities.

Scope and Application

The Tariff Concession Instrument No. 0942025 under the Customs Act 1901 applies to goods specified in the instrument, namely certain emulsion explosives, which are subject to a reduced rate of customs duty. This legislation is administered by the Chief Executive Officer of Customs, who must determine whether the application for a Tariff Concession Order (TCO) meets the core criteria, specifically that no substitutable goods are produced in Australia. The geographic reach of this Act is national, as it pertains to the importation of goods into Australia. It is pertinent to note that the Act does not apply to goods specified in section 269SJ of the Customs Act 1901, which sets out goods that cannot be subject to a TCO. The instrument does not disadvantage any person other than the Commonwealth and does not impose any liabilities on any person, although it does confer beneficial rights to importers who may apply for a refund of duty on goods imported since the TCO came into force. The commencement of the TCO is deemed to be from the date the application was lodged, 6 November 2009, as per the Act's provisions.

Key Provisions

The primary operative sections of this legislation include sections 269F, 269C, 269B, 269D, 269E, and 269P(3) of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. The CEO must consider whether the application meets the core criteria outlined in section 269C, which requires that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. The terms 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are further defined in sections 269B, 269D, and 269E, respectively. If the CEO is satisfied that the application meets the core criteria, section 269P(3) mandates that the CEO must make a written order (a TCO) specifying the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. The Act imposes specific obligations and requirements on both applicants and the CEO. Applicants must ensure that their TCO applications are lodged with sufficient detail and evidence to satisfy the CEO that the core criteria are met. This involves demonstrating that no substitutable goods are being produced in Australia at the time of application. The CEO, in turn, must review the application, consider any submissions received in response to a published notice in the Gazette, and make a decision based on the evidence presented. If the CEO is satisfied that the application meets the core criteria, they must issue a written TCO. The CEO must also publish a notice in the Gazette, inviting any interested parties to lodge submissions opposing the TCO, and consider any such submissions before making a final decision. The legislation does not explicitly outline specific offences or penalties for breaches related to the TCO process itself. However, general compliance with the Customs Act 1901 is enforced through other sections of the Act, which may include provisions for penalties in cases of non-compliance, fraud, or misrepresentation. For example, knowingly making a false statement or providing false information in a TCO application could lead to penalties under the broader regulatory framework of the Customs Act. Additionally, any actions that contravene the terms of the TCO once it is in effect could result in further consequences under the Customs Act, including potential financial penalties or other enforcement actions. The Tariff Concession Order (TCO) No. 0942025, made on 29 January 2010, declared that certain emulsion explosives are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies, resulting in a duty-free status for these goods. This order came into force on 6 November 2009, the date the application was lodged, and does not affect the rights of any person as at the date of registration. Importers of these goods can apply for a refund of duty on goods imported since the TCO came into force. Importantly, the TCO does not impose any liabilities on any person, and the rights of importers will be beneficially affected by the tariff concession.