EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1009554
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 slab carrier parts on 23 February 2010.
Instrument
TCO No 1009554 was made on 30 April 2010. It declares that those certain slab carrier parts 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. 1009554 is taken to have come into force on 23 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, includes a provision for Tariff Concession Orders (TCOs) to provide relief from customs duty on certain imported goods. This was introduced to address the need for tariff concessions that can benefit industries by reducing costs and promoting competitiveness, provided that no substitutable goods are produced in Australia. The Tariff Concession Instrument No. 1009554, made on 30 April 2010, is an example of such an order. In this case, the Chief Executive Officer of Customs granted a concession to Bluescope Steel for certain slab carrier parts, resulting in a reduction of the duty rate from 5% to free. The decision was made after it was established that no substitutable goods were produced in Australia, and no objections were received following the publication of the application in the Gazette. The policy objective here is to support Australian industries by making certain imported goods more affordable without imposing any liabilities or disadvantaging other entities.
Scope and Application
The Tariff Concession Instrument No. 1009554 under the Customs Act 1901 applies specifically to the goods subject of the concession, in this instance certain slab carrier parts applied for by Bluescope Steel. The Act applies to any entity or person seeking a tariff concession order (TCO) for goods imported into Australia. The scope of the Act extends to the Chief Executive Officer of Customs (CEO) who is responsible for deciding whether an application for a TCO meets the core criteria, particularly ensuring that no substitutable goods are produced in Australia. The concession applies at the national level across Australia and is effective from the date the application for the TCO was lodged, which in this case was 23 February 2010. The instrument does not disadvantage any person other than the Commonwealth and does not impose any liabilities on any person. Notably, the instrument explicitly excludes goods specified in section 269SJ of the Act that cannot be subject to a TCO. The Act's provisions can be extended or clarified through subordinate instruments, although in this instance, no such extensions or restrictions are noted.
Key Provisions
The Tariff Concession Instrument No. 1009554, as explained in the accompanying document, pertains to section 269F of the Customs Act 1901 (the Act), which facilitates the application for Tariff Concession Orders (TCOs) by interested parties. Under this scheme, the Chief Executive Officer of Customs (the CEO) is tasked with determining the eligibility of goods for tariff concessions. The Act provides that an application for a TCO must not be in respect of goods specified in section 269SJ of the Act, which outlines goods that are ineligible for TCOs. Once an application is deemed valid, the CEO must assess whether it meets the core criteria, as specified in section 269C, which requires that on the date of application, no substitutable goods are produced in Australia in the ordinary course of business.
The Act imposes certain obligations on the CEO regarding the processing and decision-making of TCO applications. Once an application is received, the CEO must publish a notice in the Gazette inviting submissions from any interested parties who might have reasons why the TCO should not be granted. In this instance, the CEO did not receive any submissions in response to the notice, indicating no objections to the concession. Furthermore, the Act mandates that a TCO is considered to have come into effect on the date the application was lodged, ensuring that the process is timely and that the benefits of the concession are available as soon as possible.
The Act includes provisions for penalties and consequences should the obligations and requirements of the TCO scheme be breached. While the specific penalties for non-compliance are not detailed in the explanatory statement, the general legal framework under which the Customs Act operates would typically include both civil and criminal penalties for violations. These could include fines, imprisonment, or other sanctions, depending on the severity and intent behind the breach. The consequences aim to ensure adherence to the tariff concession scheme and maintain the integrity of the customs duty system.
In summary, the Tariff Concession Instrument No. 1009554 outlines the procedure for applying for and granting tariff concessions on certain goods. It mandates that the CEO must assess applications against specific criteria, publish notices inviting submissions, and ensure that the concession comes into effect promptly. The Act also implicitly includes provisions for handling non-compliance, though specific penalties are not detailed in this explanatory statement. This legislative framework is designed to facilitate efficient and fair processing of tariff concessions while maintaining the integrity of Australia's customs duties system.