EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1024580
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.
Robert Bosch Australia Pty Ltd applied for a TCO in respect of certain aluminium profiles on 02 June 2010.
Instrument
TCO No 1024580 was made on 30 August 2010. It declares that those certain aluminium profiles 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. 1024580 is taken to have come into force on 02 June 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 Australian Parliament, provides a framework for the administration of customs duties and includes provisions for Tariff Concession Orders (TCOs). These orders allow for the application of a lower rate of customs duty on certain goods, subject to specific criteria being met. The purpose of the Tariff Concession Instrument No. 1024580 is to address the issue of applying a tariff concession to certain aluminium profiles as requested by Robert Bosch Australia Pty Ltd on 02 June 2010. This instrument was created to provide relief from the general rate of duty, which is 5%, by applying a rate of duty of free for these specific goods, thereby facilitating trade and potentially benefiting importers by allowing them to apply for refunds of duty on goods imported since the effective date of the concession. The instrument was made on 30 August 2010 and took effect from the date the application was lodged, 02 June 2010, with no submissions received against the concession.
Scope and Application
The Customs Act 1901, specifically under Part XVA, establishes a framework within which Tariff Concession Orders (TCOs) can be issued by the Chief Executive Officer of Customs (CEO) to provide reduced rates of customs duty on certain goods. The Act applies to any person or entity who wishes to apply for a TCO for goods that are not specified in section 269SJ of the Act, which excludes certain goods from eligibility. The application process involves satisfying the CEO that the goods in question are not substitutable by products already manufactured in Australia and adhere to the definitions provided in the Act. The geographic scope of this legislation is national, as it pertains to the importation of goods into Australia and the application of customs duties accordingly. The TCOs do not affect pre-existing rights or liabilities of parties other than the Commonwealth and can be subject to further regulation or conditions through subordinate instruments. The instrument in question, TCO No 1024580, was made applicable to certain aluminium profiles, effectively setting their customs duty rate to free, down from the general rate of 5%, upon the application date of 2 June 2010.
Key Provisions
The Tariff Concession Order No. 1024580, under the Customs Act 1901, establishes a tariff concession for certain aluminium profiles, as applied for by Robert Bosch Australia Pty Ltd on 02 June 2010. This order, which came into force on the same date, declares that these specific aluminium profiles are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995. Consequently, the usual general duty rate of 5% is replaced by a rate of free duty for these goods (subsection 269P(3)). The primary objective of this order is to facilitate trade by reducing the duty burden on these particular aluminium profiles.
In accordance with section 269F of the Customs Act 1901, any individual or entity may apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO). The CEO must assess whether the application complies with the core criteria outlined in section 269C, which requires the absence of substitutable goods produced in Australia at the time of application. Additionally, the CEO must ensure that the goods are not among those specified in section 269SJ, which are ineligible for TCOs. If the application satisfies these conditions, the CEO is mandated to issue a written TCO (subsection 269P(3)).
The obligations imposed by this Act on the parties involved include ensuring that the goods in question do not have Australian-produced substitutes at the time of application, and that they are not listed in section 269SJ of the Act. Furthermore, upon receiving a valid application, the CEO must promptly publish a notice in the Gazette, inviting any interested party to submit reasons against the TCO (subsection 269K(1)). This order does not retroactively affect the rights of any individual or entity other than the Commonwealth and does not impose any liabilities on such parties in respect of actions taken prior to the TCO’s registration.
In the event of a breach of the provisions set forth in the Customs Act 1901, various penalties may apply. The Act does not explicitly state the penalties for non-compliance, but breaches of customs regulations generally attract severe civil and criminal penalties. These may include substantial fines and imprisonment, depending on the severity and intent of the breach. The specifics of such penalties are detailed in the relevant sections of the Customs Act 1901 and the Customs Regulations 1998.