EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0946734
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.
Altronics Distributors applied for a TCO in respect of certain cordless microphone system on 2 December 2009.
Instrument
TCO No 0946734 was made on 26 February 2010. It declares that those certain cordless microphone system 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. 0946734 is taken to have come into force on 2 December 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 Tariff Concession Order (TCO) No. 0946734, made under the Customs Act 1901, was enacted to provide relief from customs duty on certain cordless microphone systems. This order was introduced to address the issue of ensuring that Australian consumers and businesses have access to competitively priced goods without the burden of high customs duties. The order was issued by the Chief Executive Officer of Customs in response to an application by Altronics Distributors on 2 December 2009. The enactment body was the Australian Government, with the policy objective being to enhance economic efficiency and consumer welfare by facilitating the importation of goods that are not produced domestically or have no suitable domestic substitutes. This order effectively reduced the duty rate from the general 5% to a zero rate, effective from the date of application.
Scope and Application
The Tariff Concession Instrument No. 0946734 under the Customs Act 1901 applies to specific goods, in this instance, certain cordless microphone systems, where an application for a Tariff Concession Order (TCO) has been lodged and subsequently approved by the Chief Executive Officer of Customs (CEO). The application, made by Altronics Distributors on 2 December 2009, led to the declaration that the specified goods would be subject to a TCO, reducing the duty from the general rate of 5% to free. This instrument is part of a scheme under section 269F of the Act, enabling reduced customs duty for goods that meet the core criteria specified in section 269C, namely that no substitutable goods are produced in Australia in the ordinary course of business. The scope of the TCO is limited to the goods specified in the application and is effective from the date the application was lodged. The Act ensures that the rights of non-Commonwealth persons are not adversely affected by the TCO, and importers of the goods can apply for a refund of duty paid prior to the TCO's effective date. The instrument does not impose any new liabilities on any person.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 0946734, under the Customs Act 1901, are sections 269F, 269C, and 269P. Section 269F allows any person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) for certain goods, provided the goods are not specified in section 269SJ. Section 269C specifies that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269P(3) mandates that if the CEO is satisfied the application meets the core criteria, the CEO must issue a written TCO.
Under this legislation, the CEO has specific obligations and requirements. The CEO must determine if the TCO application meets the core criteria set out in section 269C. This involves assessing whether any substitutable goods were produced in Australia in the ordinary course of business on the date the application was lodged. If satisfied that the core criteria are met, the CEO must issue a written TCO, as stipulated in section 269P(3). The CEO is also required to publish a notice in the Gazette, inviting any interested parties to submit any reasons why the TCO should not be made, as outlined in section 269K(1). This ensures transparency and allows for potential objections before the TCO is issued.
In terms of breaches and consequences, the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for failing to comply with the TCO provisions. However, any actions taken in breach of the Customs Act 1901 may lead to legal consequences under the broader provisions of the Act. For example, failure to comply with customs regulations generally could result in fines or imprisonment under the general penalties outlined in the Customs Act. The exact penalties would depend on the nature and severity of the breach, as well as any relevant provisions in other parts of the Act or associated regulations.