EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1017212
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.
ED Oates Pty Ltd applied for a TCO in respect of certain mops on 13 April 2010.
Instrument
TCO No 1017212 was made on 25 June 2010. It declares that those certain mops 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. 1017212 is taken to have come into force on 13 April 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, established a framework for the imposition of customs duties on imported goods. To address specific economic and trade policy objectives, the Act allows for the creation of Tariff Concession Orders (TCOs) which can reduce the rate of customs duty on certain goods. These orders are particularly significant as they can provide tariff relief to businesses and consumers by making certain imported goods more affordable. Enacted to streamline trade and economic policy, the Act facilitates the application process for TCOs, ensuring that they meet core criteria such as the non-production of substitutable goods in Australia. The 2010 Tariff Concession Instrument No. 1017212, made under the authority of the Customs Act 1901, is an example of this legislative framework in action, granting duty-free status to certain mops as of 13 April 2010, thereby reducing the duty rate from 5% to free. This legislative measure aims to foster competitive markets by reducing the cost of imported goods, ultimately benefiting consumers and businesses alike.
Scope and Application
The Tariff Concession Instrument No. 1017212 under the Customs Act 1901 applies to ED Oates Pty Ltd's application for a Tariff Concession Order (TCO) concerning certain mops, providing a zero-rate duty on these goods as opposed to the standard 5% duty. This instrument is pertinent to the industry involved in the importation of mops and pertains to the specific conduct of importing these goods into Australia. The application and subsequent order fall within the Commonwealth jurisdiction, as dictated by the Customs Act 1901. The scope of the TCO is limited to the goods specified in the application, namely certain mops, and excludes any other goods not specified or those listed under section 269SJ of the Act, which precludes certain goods from TCO consideration. The instrument does not extend its application through subordinate instruments but operates within the confines of the Customs Act 1901 and the Customs Tariff Act 1995. Any broader implications or extensions of application are not specified in this particular TCO.
Key Provisions
The Tariff Concession Instrument No. 1017212, under the Customs Act 1901, primarily serves to grant a tariff concession for certain mops, as requested by ED Oates Pty Ltd. Section 269F(1) of the Act allows an application to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO), provided the goods are not listed in section 269SJ. The CEO is then required to assess if the application meets the core criteria outlined in section 269C, which hinges on the absence of substitutable goods produced in Australia at the time of the application (section 269D and 269E). Once the CEO confirms these conditions, a TCO is issued under section 269P(3), applying a specific tariff item from Schedule 4 of the Customs Tariff Act 1995, in this case, item 50, resulting in a duty-free rate for the specified mops, down from the general rate of 5%.
The obligations imposed by the Act on the parties involved are primarily procedural and compliance-based. The CEO must ensure that any TCO application is assessed against the core criteria and that no substitutable goods are being produced domestically. Furthermore, as stipulated in subsection 269K(1), the CEO is mandated to publish a notice in the Gazette inviting submissions from any interested parties who might have reasons to oppose the TCO. This ensures transparency and an opportunity for public input. In the case of TCO No. 1017212, no such submissions were received, indicating a smooth procedural process.
Failure to comply with the requirements set out by the Customs Act 1901 can lead to both civil and criminal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of the Act could potentially lead to legal actions for non-compliance, fines, or other penalties as prescribed by the Act. The Act's provisions are designed to ensure that the tariff concessions are applied fairly and only under the correct circumstances, maintaining the integrity of the customs duty system.
In conclusion, TCO No. 1017212 provides a tariff concession for certain mops, reducing the customs duty from 5% to free, contingent upon the CEO's assessment that no substitutable goods are produced in Australia. The Act mandates a transparent and inclusive process for issuing TCOs, with obligations falling on the CEO to verify the application's compliance with the statutory criteria and to publish notices in the Gazette for public submissions. While specific penalties are not outlined in the explanatory statement, breaches of the Act could result in civil or criminal consequences.