EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1007274
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.
Carl Zeiss Vision Holdings applied for a TCO in respect of certain lens blanks on 10 February 2010.
Instrument
TCO No 1007274 was made on 23 April 2010. It declares that those certain lens blanks 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. 1007274 is taken to have come into force on 10 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, enacted by the Parliament of Australia, provides a framework for the administration of customs and excise duties. This legislation includes the ability to issue Tariff Concession Orders (TCOs) which reduce the customs duty on certain goods. The Tariff Concession Instrument No. 1007274 was introduced to address a specific need for tariff concessions on certain lens blanks, as identified by Carl Zeiss Vision Holdings. This instrument was enacted to ensure that no substitutable goods were being produced in Australia at the time of application, thus meeting the core criteria outlined in the Customs Act. The policy objective is to facilitate trade by reducing the duty on these goods, thereby making them more competitively priced in the Australian market without imposing any new liabilities or disadvantaging existing rights of importers. The instrument came into force on the date the application was lodged, ensuring a swift implementation of the tariff concession.
Scope and Application
The Tariff Concession Instrument No. 1007274 applies to goods, specifically certain lens blanks, as declared by the Chief Executive Officer of Customs under section 269F of the Customs Act 1901. This application was made by Carl Zeiss Vision Holdings on 10 February 2010, and the instrument itself was issued on 23 April 2010. The instrument exempts these particular lens blanks from the general duty rate, which is 5%, and instead applies a duty rate of free. This concession is granted on the condition that no substitutable goods were produced in Australia at the time the application was made, as per section 269C of the Act. The instrument operates on a national level within Australia, and its scope is limited to the specific goods identified in the application. Any other goods not specified in the TCO remain subject to the standard customs duties unless they receive their own tariff concession. The instrument does not disadvantage any person other than the Commonwealth and does not impose any new liabilities on individuals or entities.
Key Provisions
The Tariff Concession Instrument No. 1007274, under the Customs Act 1901, sets out the requirements for a Tariff Concession Order (TCO) concerning certain lens blanks. According to section 269F, an application for a TCO can be made to the Chief Executive Officer of Customs (CEO) for goods not specified in section 269SJ, which outlines goods that cannot be subject to a TCO. The CEO must then determine whether the application meets the core criteria as outlined in section 269C. This involves confirming that, on the date the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business, as defined by sections 269D and 269E.
Upon satisfying the core criteria, the CEO, as per subsection 269P(3), must issue a written order declaring that the goods in question are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. In this specific case, item 50 applies to these certain lens blanks, resulting in a duty rate of free, down from the general rate of 5%. The CEO is also required, as per subsection 269K(1), to publish a notice in the Gazette inviting any person who believes the TCO should not be granted to submit their reasons. In this instance, no submissions were received.
The TCO comes into effect on the date the application was lodged, as stated in subsection 269S(1). This means that TCO No. 1007274 is effective from 10 February 2010. It is crucial to note that the TCO does not affect the rights of any person (other than the Commonwealth) as of the registration date, nor does it impose any liabilities on any person. However, importers of these goods will benefit from the TCO, as they can apply for a refund of duty on goods imported since the effective date of the TCO.
In terms of compliance, any breach of the provisions under this Act may result in legal consequences. The specific offences, penalties, or civil/criminal consequences for breach are not detailed in the provided text, but generally, breaches of the Customs Act 1901 can lead to penalties such as fines or imprisonment, depending on the severity of the breach. The maximum penalties would be as outlined in the relevant sections of the Act and any associated regulations.