EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0948896
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 Limited applied for a TCO in respect of certain wringer or oil absorbing rolls on 15 December 2009.
Instrument
TCO No 0948896 was made on 05 March 2010. It declares that those wringer or oil absorbing rolls 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. 0948896 is taken to have come into force on 15 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 Instrument No. 0948896 under the Customs Act 1901 was enacted in 2010 to provide tariff concessions for certain goods, specifically wringer or oil absorbing rolls, as applied by Bluescope Steel Limited. This instrument was developed to address the need for reduced customs duty rates on specific imported goods where no substitutable products were produced domestically. The instrument was created by the Chief Executive Officer of Customs, following the application process outlined in the Customs Act 1901, which mandates that tariff concession orders (TCOs) be made if certain criteria are met, particularly if no substitutable goods are produced in Australia. The policy objective behind this concession is to support the import of goods that are not domestically produced, thereby potentially benefiting importers and the broader market by reducing the cost of these goods.
The process involved public consultation, where no objections were received regarding the application for tariff concessions, thus allowing the TCO to proceed without any imposed liabilities on persons other than the Commonwealth. The TCO came into effect on the date the application was lodged, 15 December 2009, and it has allowed for the duty on the specified goods to be set at free, down from the general rate of 5%. This legislative measure aligns with the broader policy aim of facilitating smoother trade and reducing costs for specific imported goods.
Scope and Application
The Customs Act 1901 applies to all persons and entities involved in the importation of goods into Australia, including individuals, businesses, and importers. Specifically, the Act facilitates the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can reduce the customs duty on certain goods under specific circumstances. The Act allows for the application of a lower rate of customs duty to goods that are subject to a TCO, provided that these goods are not specified as ineligible in section 269SJ of the Act and that no substitutable goods are produced in Australia on the day the application is lodged. The geographic reach of the Act is national, impacting all jurisdictions within Australia. The Act may be extended or restricted through subordinate instruments, such as regulations that define terms like "goods produced in Australia" and "ordinary course of business". Notably, the Act does not disadvantage any person, including importers, with respect to their rights and liabilities as of the date of registration, and it does not impose any new liabilities on any person.
Key Provisions
The key operative sections of the Tariff Concession Instrument No. 0948896 (TCO No. 0948896) under the Customs Act 1901 include sections 269C, 269B, 269D, 269E, 269F, 269K, 269P, and 269SJ. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) for goods, provided those goods are not specified in section 269SJ. The CEO must assess if the application meets the core criteria outlined in sections 269C and 269B, which relate to the production of substitutable goods in Australia. If satisfied, the CEO must make a written TCO order as per section 269P(3). Section 269K requires the CEO to publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made, while section 269S(1) states that a TCO is deemed to come into force on the day the application is lodged.
The obligations imposed by the Act on the parties or entities it governs include ensuring that any application for a TCO is made in accordance with the provisions of the Customs Act 1901. The CEO must rigorously assess whether the application meets the core criteria, particularly whether no substitutable goods are produced in Australia. The CEO must also publish a notice in the Gazette to invite submissions and consider any such submissions received. Furthermore, the CEO must ensure that the TCO does not disadvantage any person or impose liabilities on anyone in respect of actions taken before the TCO comes into effect.
Any breaches of the provisions under the Customs Act 1901 could lead to various civil or criminal consequences, although the specific penalties are not detailed in the provided text. Typically, non-compliance with customs regulations can result in fines, penalties, or legal action. The severity of the penalties would depend on the nature and extent of the breach, and the specific provisions of the Customs Act 1901 and related regulations. However, the explanatory statement does not specify the maximum penalties applicable to breaches of the TCO provisions.