EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1000203
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 roll sleeves and or roll blocks on 04 January 2010.
Instrument
TCO No 1000203 was made on 22 March 2010. It declares that those certain 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. 1000203 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 Tariff Concession Instrument No. 1000203, enacted under the Customs Act 1901, was introduced to address the issue of providing tariff concessions for specific goods, thereby reducing the customs duty applicable to these items. This instrument was developed in response to an application from Bluescope Steel, seeking tariff concessions for certain roll sleeves and roll blocks. The instrument was created by the Chief Executive Officer of Customs, who, after evaluating the application against the core criteria specified in the Customs Act, determined that no substitutable goods were produced in Australia at the time of the application. The Tariff Concession Order (TCO) No. 1000203 was published in the Gazette, inviting public submissions, none of which were received. The policy objective of this measure is to facilitate the importation of these specific goods by reducing their customs duty rate, thus supporting Australian industries that may rely on these imports for their operations.
The enactment of this instrument by the relevant authority under the Customs Act 1901 aims to streamline the process of obtaining tariff concessions, ensuring that the application of such concessions is both efficient and transparent. The Customs Act 1901 provides the legislative framework for the creation of Tariff Concession Orders, enabling the Chief Executive Officer of Customs to make such orders when certain conditions are met. This particular instrument, TCO No. 1000203, was introduced to offer tariff relief for certain roll sleeves and roll blocks, with the intention of benefiting importers and potentially supporting domestic industries that might utilise these goods in their production processes.
Scope and Application
The Tariff Concession Instrument No. 1000203 under the Customs Act 1901 applies to specific goods, in this case certain roll sleeves and roll blocks, and is directed towards entities and individuals involved in the importation of these goods. This instrument allows for a lower rate of customs duty, effectively making it free, provided the application meets the core criteria as outlined in the Act. The geographic reach of this legislation is national, as it pertains to the customs duties across Australia. The Act's application is restricted by exclusions specified in section 269SJ, which lists goods that cannot be subject to a Tariff Concession Order (TCO). The instrument extends its application through the subordinate instrument, which was made on 22 March 2010, following the acceptance of a valid application by Bluescope Steel on 04 January 2010. The TCO came into force on the date the application was lodged, and it does not impose any liabilities on any person other than the Commonwealth nor affect the rights of persons as at the date of registration.
Key Provisions
The main provisions of Tariff Concession Order No. 1000203 under the Customs Act 1901 (section 269C) concern the application and making of Tariff Concession Orders (TCOs). Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a TCO in respect of goods. If the CEO is satisfied that the application does not pertain to goods specified in section 269SJ, which are ineligible for a TCO, the CEO must determine whether the application meets the core criteria. According to section 269C, the 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. The CEO must then make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (section 269P(3)).
The obligations imposed by the Act on the parties involved are primarily on the CEO of Customs. The CEO must accept valid applications for a TCO, assess whether the application meets the core criteria, and if so, make a written order in the form of a TCO. The CEO is also required to publish a notice in the Gazette inviting submissions from any interested parties, as per section 269K(1). In this case, the CEO did not receive any submissions in response to the published notice. The Act further stipulates that a TCO comes into force on the day the application is lodged (section 269S(1)), which was 04 January 2010 for TCO No. 1000203.
The Act outlines specific consequences and penalties for breaches of its provisions. While the explanatory statement does not detail specific offences or penalties for failing to comply with the TCO requirements, general penalties for breaches of the Customs Act 1901 can include fines and imprisonment. For example, section 245 of the Act allows for penalties of up to $22,200 or imprisonment for up to 2 years for customs-related offences. For TCOs, non-compliance or fraudulent claims could lead to penalties under the Customs Act, depending on the nature and severity of the breach.
In summary, TCO No. 1000203 declares that certain roll sleeves and roll blocks are subject to a zero rate of duty under item 50 of Schedule 4 to the Customs Tariff Act 1995, as the CEO determined no substitutable goods were produced in Australia at the time of the application. The CEO's obligations include assessing applications, publishing notices, and issuing TCOs as appropriate, while the rights of importers will be beneficially affected, allowing them to apply for duty refunds on imports since the TCO's effective date.