EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1026024
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.
Paper Choice Pty Ltd applied for a TCO in respect of certain printing paper on 09 June 2010.
Instrument
TCO No 1026024 was made on 30 August 2010. It declares that those certain printing paper 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. 1026024 is taken to have come into force on 09 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 Tariff Concession Order No. 1026024, issued under the Customs Act 1901, was enacted to provide a concession in customs duty for certain printing paper. This legislative instrument addresses the problem of ensuring that Australian businesses can access essential goods without being burdened by prohibitive tariffs, thereby promoting a competitive business environment. The instrument was issued by the Chief Executive Officer of Customs, who assessed the application from Paper Choice Pty Ltd and determined that no substitutable goods were produced in Australia, satisfying the core criteria set out in the Act. The policy objective is to facilitate the import of necessary goods by applying a reduced or free customs duty rate, enhancing the economic viability of businesses that rely on these imports.
This Tariff Concession Order, which came into force on 9 June 2010, allows the specified printing paper to be imported duty-free, significantly benefiting importers by potentially reducing their costs and increasing their competitiveness. The decision to grant the concession was made in accordance with the legislative requirements, including the publication of the application in the Gazette and the absence of any objections. The Order ensures that it does not adversely affect the rights of any party as of the registration date, and it does not impose any new liabilities on individuals or entities.
Scope and Application
The Tariff Concession Instrument No. 1026024 under the Customs Act 1901 applies to the specific case of certain printing paper and the entities that import or deal with these goods. The instrument is concerned with the application of tariff concessions, which result in a reduced rate of customs duty for goods that meet the criteria for a Tariff Concession Order (TCO). This Act extends its reach to entities or individuals who apply for such concessions and those who import or deal with the goods in question. The Act is administered at the Commonwealth level and its application is not restricted to any particular state, territory, or national boundary within Australia. The Act excludes certain goods from being subject to a TCO as specified in section 269SJ of the Customs Act 1901, which includes goods that are prohibited or restricted under other legislative provisions. Additionally, the application of the Act may be extended or restricted through subordinate instruments, such as regulations, which can further define the scope and application of tariff concessions.
Key Provisions
The main operative sections of this legislation, namely Tariff Concession Order No. 1026024, pertain to the granting of tariff concessions for certain printing paper under the Customs Act 1901 (section 269F). This order was made on 30 August 2010, and it specifies that the printing paper in question is subject to a zero percent duty rate under item 50 of Schedule 4 to the Customs Tariff Act 1995 (section 269P(3)). The decision to grant this concession was based on the absence of substitutable goods being produced in Australia, which met the core criteria outlined in section 269C of the Customs Act.
The obligations imposed by this Act on the relevant parties include the requirement for applicants to demonstrate that no substitutable goods are produced in Australia to satisfy the core criteria (section 269C). The Chief Executive Officer of Customs (CEO) must also ensure that any application is not in respect of goods specified in section 269SJ of the Act. Furthermore, the CEO is obligated to publish a notice in the Gazette inviting submissions from interested parties, although in this case, no submissions were received (section 269K(1)). The TCO does not affect any rights or impose any liabilities on persons other than the Commonwealth, and it is effective from the date the application was lodged (section 269S(1)).
Should any party fail to comply with the requirements of the Act, there could be significant legal repercussions. While the explanatory statement does not explicitly detail the penalties for non-compliance, breaches of the Customs Act can generally result in severe civil or criminal penalties, depending on the nature and severity of the breach. These penalties could include fines, imprisonment, or both, with the exact penalties varying based on the specific provision violated and the circumstances of the breach.
The tariff concession order does not impose any liabilities on any person, but it does afford rights to importers to apply for a refund of duty on goods imported since the TCO came into force. This benefit is explicitly outlined in paragraph 126(1)(r) of the Regulations. Importers are thus entitled to claim back any duties paid on the specified printing paper imported after 9 June 2010, the date the TCO was taken to have come into force.
In summary, the Tariff Concession Order No. 1026024 provides a zero duty rate for certain printing paper, contingent on compliance with the core criteria of the Customs Act 1901. The obligations are primarily on the applicant and the CEO to ensure the application meets the statutory requirements. Failure to comply with these obligations could lead to civil or criminal penalties. The TCO itself provides specific benefits to importers without imposing additional liabilities.