EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1006517
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.
Ten Capital Equipment applied for a TCO in respect of certain stringing electrical conductor line pulleys on 05 February 2010.
Instrument
TCO No 1006517 was made on 23 April 2010. It declares that those certain stringing electrical conductor line pulleys 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. 1006517 is taken to have come into force on 05 February 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 was enacted to provide a framework for the administration of customs and excise duties in Australia. It was introduced to address the need for a structured approach to the regulation and management of imports and exports. This Act, enacted by the Australian Parliament, aims to facilitate trade by providing a comprehensive set of rules governing the importation and exportation of goods. One of the key provisions of the Act is the establishment of a scheme under which Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (CEO). The TCOs allow for a lower rate of customs duty on goods that meet specific criteria, thereby encouraging trade by reducing the financial burden on importers. The Explanatory Statement outlines that Tariff Concession Instrument No. 1006517 was introduced in response to an application by Ten Capital Equipment for a concession on certain stringing electrical conductor line pulleys, effectively reducing the duty rate from 5% to free. This initiative aligns with the policy objective of supporting Australian businesses by making imported goods more affordable.
Scope and Application
The Tariff Concession Instrument No. 1006517 under the Customs Act 1901 applies to the specific goods identified in the application submitted by Ten Capital Equipment, namely certain stringing electrical conductor line pulleys. The Act pertains to entities or individuals involved in the importation of these goods, offering them a lower rate of customs duty as outlined in the Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. This legislation operates within the Commonwealth jurisdiction and applies to the importation of the specified goods into Australia. It is important to note that the Act excludes certain goods as outlined in section 269SJ of the Customs Act 1901, which cannot be the subject of a TCO. The application of the Act may be further defined or extended through subordinate instruments, although the primary focus remains on ensuring that no substitutable goods are produced in Australia on the day the application was lodged, as stipulated in section 269C of the Act.
Key Provisions
The primary sections of Tariff Concession Instrument No. 1006517 (TCO No. 1006517) under the Customs Act 1901 (section 269F) concern the application for a Tariff Concession Order (TCO) by a party such as Ten Capital Equipment in respect of specific goods, in this case, certain stringing electrical conductor line pulleys. The CEO of Customs is mandated to assess whether the application for a TCO meets the core criteria, as outlined in section 269C, which requires that no substitutable goods were produced in Australia on the day the application was lodged. If the CEO determines that the application meets these criteria, a written TCO is issued, declaring that the goods in question are subject to a reduced customs duty rate, in this instance, from 5% to free of charge under item 50 of Schedule 4 to the Customs Tariff Act 1995.
The obligations imposed on the parties governed by this Act include the requirement for applicants to ensure their applications are valid and that they meet the core criteria for a TCO. The CEO is obligated to review applications and make a decision based on the information provided. Additionally, the CEO must publish a notice in the Gazette inviting submissions from any interested parties who might oppose the TCO, although in this case, no submissions were received.
Any breach of the provisions of the Customs Act 1901, including the misuse of a TCO, could result in civil or criminal consequences. Offences under the Act can lead to penalties such as fines or imprisonment, although specific penalties are not detailed in the explanatory statement for this particular TCO. The Act also provides for the imposition of financial penalties for incorrect declarations or other breaches, which could include substantial fines depending on the severity and intent of the breach. However, the explanatory statement does not specify the exact penalties for this particular TCO.