EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1009269
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.
Mcphersons Consumer Products applied for a TCO in respect of certain salad spinners on 22 February 2010.
Instrument
TCO No 1009269 was made on 30 April 2010. It declares that those certain salad spinners 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. 1009269 is taken to have come into force on 22 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 by the Parliament of Australia to provide a comprehensive framework for the regulation of customs and excise duties. The Act was introduced to address the need for a structured approach to the administration of customs and excise, ensuring efficient collection of duties and taxes, and providing for the protection of domestic industries where necessary. Part XVA of the Customs Act 1901, which allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, was introduced to facilitate tariff reductions for certain goods, thereby promoting trade and economic growth. This part of the Act enables the CEO to lower the rate of customs duty on specific goods, provided the application for such a concession meets the core criteria outlined in the Act. The policy objective of this mechanism is to support Australian industries by reducing the cost of imported goods that do not have locally produced alternatives.
Scope and Application
The Tariff Concession Instrument No. 1009269 under the Customs Act 1901 applies to individuals or entities that have applied for and been granted a Tariff Concession Order (TCO) for specific goods, in this case, certain salad spinners. The instrument is applicable to the goods specified in the order, which, once granted, benefit from a reduced or free customs duty rate. The TCO is subject to the core criteria outlined in the Customs Act 1901, where the Chief Executive Officer of Customs must determine that no substitutable goods were produced in Australia on the day the application was lodged. This instrument extends its application across the Commonwealth of Australia, as per the jurisdictional reach of the Customs Act 1901. Any exclusions or limitations are defined within the Act, particularly in section 269SJ which lists goods that cannot be subject to a TCO. The application and scope of the TCO can be further detailed or modified through subordinate instruments, as provided for under the Customs Act 1901.
Key Provisions
The Tariff Concession Order No. 1009269, made under section 269P of the Customs Act 1901, specifies that certain salad spinners qualify for a lower customs duty rate. Section 269P(3) requires the Chief Executive Officer of Customs (CEO) to issue a written order if satisfied that the application meets the core criteria. Specifically, Section 269C states that an application meets the core criteria if, on the application date, no substitutable goods were produced in Australia in the ordinary course of business. For this order, the CEO determined that no such goods were produced, allowing for the concession.
The obligations imposed by this Act on parties, particularly Mcphersons Consumer Products, include ensuring their application for a Tariff Concession Order (TCO) aligns with the criteria outlined in the Customs Act 1901. Section 269K(1) requires the CEO to publish a notice in the Gazette inviting submissions from interested parties if the application is accepted as valid. Mcphersons Consumer Products must also adhere to the procedural requirements set out in the Act, including timely submission of all necessary documentation. Additionally, importers of the affected goods must comply with the provisions allowing them to apply for a refund of duty under paragraph 126(1)(r) of the Regulations.
Breaching the provisions of the Customs Act 1901 or the terms of the TCO can lead to legal consequences. For instance, failing to comply with the application criteria or providing false information can result in penalties. While specific penalties are not detailed in the explanatory statement, breaches of customs regulations generally attract fines and potential criminal charges under section 260 of the Act, which covers various offences related to the Customs Act and associated regulations. The maximum penalties for these offences can be significant, reflecting the importance of compliance with customs laws.