Overview

The Tariff Concession Instrument No. 1000206, enacted under the Customs Act 1901, addresses the need for tariff concessions to facilitate trade and reduce the cost of imported goods. This instrument was introduced by the Chief Executive Officer of Customs in response to an application by Bluescope Steel, which sought a tariff concession for certain roll sleeves and roll blocks to ensure competitive pricing and to support the local manufacturing industry. The instrument was created to provide tariff relief by applying a free rate of duty to these specific goods, which otherwise would have been subject to a general rate of 5%, thereby enhancing economic efficiency and supporting industrial competitiveness. The policy objective of this instrument is to ensure that tariff concessions are granted where there are no substitutable goods produced in Australia, thus promoting the import of goods that are necessary for the Australian market without imposing a tariff burden. The instrument, which came into force on 4 January 2010, was made without any adverse submissions, reflecting broad acceptance of its utility in balancing trade and economic interests.

Scope and Application

The Customs Act 1901, through the Tariff Concession Instrument No. 1000206, applies to specific goods in the form of roll sleeves and roll blocks, where the applicant, Bluescope Steel, has sought and been granted a Tariff Concession Order (TCO). This Act allows the Chief Executive Officer of Customs to reduce the rate of customs duty on certain goods if certain conditions are met, specifically if no substitutable goods are produced in Australia. The application and subsequent approval of the TCO pertain to goods defined under the Customs Tariff Act 1995, with the concession affecting the general duty rate of 5% to a rate of zero for the specified goods. This concession applies nationally and comes into force on the date the application is lodged, in this case, 4 January 2010. The Act ensures that the rights of any person, excluding the Commonwealth, are not adversely affected by the TCO, and notably, importers can apply for a refund of duties paid on the specified goods since the effective date of the TCO. The Act does not specify exclusions or thresholds beyond the core criteria of non-substitution and non-production in Australia, and the scope of the Act can be further detailed through subordinate instruments.

Key Provisions

The main operative sections of Tariff Concession Instrument No. 1000206 (TCO No. 1000206) are set out in Part XVA of the Customs Act 1901, which governs the making of Tariff Concession Orders (TCOs). Section 269F of the Act allows a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO in respect of certain goods. If the CEO is satisfied that the application meets the core criteria, as outlined in sections 269C and 269P(3), the CEO must make a written order (a TCO) that declares the goods in question are subject to a lower rate of duty. In this instance, section 269P(3) of the Act indicates that the CEO was satisfied that no substitutable goods were produced in Australia, and thus declared that certain roll sleeves and roll blocks are subject to a duty rate of free, rather than the general rate of 5%. The Act imposes several obligations on the parties it governs. Firstly, section 269K(1) of the Act requires the CEO to publish a notice in the Gazette as soon as practicable after accepting a TCO application as valid, inviting any person who considers there are reasons why the TCO should not be made to lodge a submission with the CEO. This requirement aims to ensure transparency and provide an opportunity for interested parties to express their views on the proposed TCO. In the case of TCO No. 1000206, no submissions were received in response to this invitation. Additionally, the Act stipulates that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged, as per subsection 269S(1). This means that TCO No. 1000206 is deemed to have come into force on 04 January 2010, the day Bluescope Steel applied for the TCO. This provision ensures that the concessions are applied retroactively to the date of the application, thus protecting the rights of importers to claim a refund of duty on goods imported since that date under paragraph 126(1)(r) of the Regulations. The Customs Act 1901 also delineates the consequences of breaching its provisions. While the explanatory statement does not explicitly mention penalties for breaching the Act, it is reasonable to infer that any breaches of the Act's requirements, such as failing to publish a notice in the Gazette as required by section 269K(1) or incorrectly making a TCO, could result in legal consequences. These might include civil penalties or criminal charges, depending on the nature and severity of the breach. However, the specific penalties are not detailed within the explanatory statement itself.