EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1013299
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.
Sylvania Lighting Australia applied for a TCO in respect of certain fluorescent lamp fittings parts on 17 March 2010.
Instrument
TCO No 1013299 was made on 11 June 2010. It declares that those certain fluorescent lamp fittings 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. 1013299 is taken to have come into force on 17 March 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 regulate the importation of goods into Australia, including the imposition of customs duties. The Tariff Concession Instrument No. 1013299, made under the Customs Act 1901, was introduced to provide tariff concessions for certain goods that were not being produced in Australia. This instrument allows for a lower rate of customs duty on specified goods, which in this case are certain fluorescent lamp fittings parts, to be applied from the date of the application, 17 March 2010. The instrument was created in response to an application from Sylvania Lighting Australia, and following satisfaction by the Chief Executive Officer of Customs that no substitutable goods were produced in Australia. The instrument does not affect the rights of any person as at the date of registration and provides benefits to importers who can apply for a refund of duty on goods imported since the commencement date.
The Tariff Concession Instrument No. 1013299 was made by the Chief Executive Officer of Customs, in accordance with the Customs Act 1901, and no submissions were received in response to the invitation for comments. The instrument came into force on 17 March 2010, the date on which the application for the tariff concession was lodged. The policy objective of this instrument is to provide tariff concessions for goods that are not being produced in Australia, which will benefit importers of such goods.
Scope and Application
The Customs Act 1901, through the instrument Tariff Concession Instrument No. 1013299, applies to goods specified in a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. This legislation operates within the framework of Part XVA of the Customs Act 1901, which allows for the reduction of customs duty rates on certain goods, provided specific criteria are met. This applies to entities such as Sylvania Lighting Australia who may apply for a TCO if the goods in question are not specified in section 269SJ of the Act, which excludes certain goods from tariff concessions. The instrument extends to the Commonwealth jurisdiction, affecting the rights and obligations of parties involved in the importation of the specified goods, particularly benefiting importers by potentially allowing them to apply for a refund of duty paid on the goods since the effective date of the TCO. Notably, the TCO does not disadvantage any person or impose liabilities on them in respect of actions taken before the registration date of the TCO. The scope of the instrument can be extended or modified through subordinate instruments as necessary to adapt to changing economic or trade conditions.
Key Provisions
The Tariff Concession Instrument No. 1013299, made under the Customs Act 1901, pertains to a Tariff Concession Order (TCO) for certain fluorescent lamp fittings parts. The primary operative sections of the Act that govern this are sections 269F, 269C, 269B, 269D, 269E, 269P, and 269K. Section 269F allows an application to be made to the Chief Executive Officer (CEO) of Customs for a TCO. Section 269C stipulates that a TCO application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B defines the terms ‘goods produced in Australia’, ‘ordinary course of business’, and ‘substitutable goods’. If the CEO is satisfied that the application meets the core criteria, section 269P(3) mandates the CEO to make a written order declaring that the goods in question are subject to a specified rate of duty.
The obligations imposed by the Act on the parties include the requirement for applicants, such as Sylvania Lighting Australia, to apply for a TCO if they believe their goods are eligible. The CEO of Customs has the obligation to review the application and determine whether it meets the core criteria. If satisfied, the CEO must issue a written TCO, as stated in section 269P(3). Additionally, the CEO must publish a notice in the Gazette inviting any interested parties to submit objections to the TCO, as per section 269K(1). In this case, no objections were received, facilitating the issuance of the TCO.
The Act also outlines potential consequences for breaches. While the explanatory statement does not detail specific offences or penalties, it is understood that failure to comply with the terms of a TCO or any related customs legislation could lead to civil or criminal consequences. Typically, breaches of customs legislation may result in fines, penalties, or other enforcement actions as prescribed by the relevant laws. However, the maximum penalties are not explicitly mentioned in this explanatory statement, and further reference to the Customs Act and associated regulations would be necessary to ascertain the specific penalties applicable to breaches.