EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1000201
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 absorbing wringer or oil roll sleeves and or roll blocks on 04 January 2010.
Instrument
TCO No 1000201 was made on 22 March 2010. It declares that those certain absorbing wringer or oil roll sleeves and or roll blocks 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. 1000201 is taken to have come into force on 04 January 2010.
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, includes provisions under Part XVA to facilitate the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). This mechanism is intended to address the need for tariff reductions on specific goods where substitutable alternatives are not produced domestically. Section 269F of the Act allows for applications to the CEO for TCOs, provided the goods are not listed in section 269SJ, which excludes certain goods from eligibility. A TCO application must meet the core criteria set out in section 269C, which requires the absence of substitutable goods produced in Australia at the time of application. This instrument, Tariff Concession Instrument No. 1000201, was introduced to provide tariff concessions for certain absorbing wringer or oil roll sleeves and or roll blocks, reducing their duty rate to free from 5% as per the Customs Tariff Act 1995. The policy objective is to support the importation of these specific goods by alleviating customs duty burdens, thereby potentially enhancing their availability and affordability in the Australian market.
Scope and Application
The Tariff Concession Instrument No. 1000201 is a legislative measure under the Customs Act 1901, specifically targeting the application of Tariff Concession Orders (TCOs) to certain goods. This Act applies to any person or entity that seeks to import goods subject to a TCO, providing them with a lower rate of customs duty. The instrument applies nationally across Australia, impacting all importers of the specified goods. The scope of the legislation extends to absorbing wringer or oil roll sleeves and or roll blocks, which are specified in item 50 of Schedule 4 to the Customs Tariff Act 1995. The application of this TCO was determined following a successful application by Bluescope Steel, who demonstrated that no substitutable goods were produced in Australia, thereby meeting the core criteria set out in the Customs Act. The TCO, which came into effect on 04 January 2010, allows for free importation of these goods, effectively reducing the general duty rate of 5% to zero. Importantly, the legislation does not impose any new liabilities on importers and allows for the refund of duties paid on such goods imported since the effective date of the TCO.
Key Provisions
The Customs Act 1901, specifically under Part XVA, allows for the establishment of Tariff Concession Orders (TCOs) by the Chief Executive Officer (CEO) of Customs. These orders apply a lower rate of customs duty on certain goods, as specified in section 269F. For instance, TCO No. 1000201, made on 22 March 2010, applies to certain absorbing wringer or oil roll sleeves and roll blocks, reducing their duty from a general rate of 5% to free. Section 269C stipulates that a TCO application meets the core criteria if, on the day it was lodged, no substitutable goods were produced in Australia in the ordinary course of business, as defined by sections 269D and 269E.
The obligations imposed by the Customs Act on the parties involved are primarily centred around the application and approval process for TCOs. The applicant must ensure that their application complies with the core criteria outlined in section 269C. The CEO is required to evaluate the application against these criteria and, if satisfied, must make a written TCO order, as per section 269P(3). Additionally, under section 269K(1), the CEO must publish a notice in the Gazette, inviting any interested parties to submit reasons why the TCO should not be made. In this case, the CEO did not receive any submissions in response to the published notice.
Should any party breach the provisions of the Customs Act or the associated regulations, they may face civil or criminal consequences. The specific offences and penalties are not detailed in the provided text, but typically, breaches of customs regulations can result in fines or other penalties as stipulated by the Act or related legislation. The maximum penalties can vary significantly depending on the nature and severity of the breach, and these are usually outlined in the relevant sections of the Act or accompanying regulations. It is important for all parties to adhere to the requirements and obligations to avoid any potential legal ramifications.