EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1026592
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.
Nsk Australia Pty Ltd applied for a TCO in respect of certain tensioners and or pulley belts on 15 June 2010.
Instrument
TCO No 1026592 was made on 06 September 2010. It declares that those certain tensioners and or pulley belts 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. 1026592 is taken to have come into force on 15 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 Instrument No. 1026592 was enacted in 2010 under the Customs Act 1901 to provide tariff concessions on certain goods. The instrument was introduced to address the need for a scheme that allows for lower rates of customs duty on specified goods, provided that these goods are not substitutable with any produced in Australia and meet specific criteria. The enacting body was the Chief Executive Officer of Customs (CEO) who, upon receiving an application, is required to decide whether the application meets the core criteria for a Tariff Concession Order (TCO). This legislative instrument aims to ensure that the application process is transparent and accessible, allowing businesses to benefit from reduced duty rates where applicable.
The instrument was made following an application by Nsk Australia Pty Ltd for a TCO on certain tensioners and pulley belts, and it came into force on the date of the application, 15 June 2010. The CEO made the written order, declaring that these goods are subject to a 5% duty rate as specified in the Customs Tariff Act 1995. The policy objective is to facilitate the importation of these goods by reducing their duty rates, thereby supporting businesses and potentially lowering consumer prices, while ensuring that the application process is fair and open to public scrutiny.
Scope and Application
The Tariff Concession Instrument No. 1026592, issued under the Customs Act 1901, applies to specific tensioners and pulley belts, providing tariff concessions for these goods. The Act applies to any entity or person seeking to import these goods into Australia, as it modifies the customs duty rates applicable to them. This concession is granted by the Chief Executive Officer of Customs, who evaluates applications under section 269F and ensures they meet the core criteria set out in sections 269C, 269B, and 269D of the Act. This legislation extends to the entire Commonwealth of Australia, impacting trade practices by altering the duty rates for the specified goods. Importantly, the Act excludes certain goods from tariff concessions, as outlined in section 269SJ, ensuring that only those not produced domestically qualify for the reduced duty rates. The instrument came into effect on 15 June 2010, the date the application was lodged, and no liabilities or disadvantages accrue to non-Commonwealth entities from this concession.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 1026592 are contained within Part XVA of the Customs Act 1901 (section 269C, section 269B, section 269D, section 269E, and section 269P(3)). These sections outline the conditions under which a Tariff Concession Order (TCO) can be applied for and granted by the Chief Executive Officer of Customs (section 269F). If an application for a TCO is made in respect of goods that are not specified in section 269SJ, the CEO must determine if the application meets the core criteria set out in section 269C. If the application is successful, the CEO issues a written order (section 269P(3)), specifying that the goods are subject to a lower rate of customs duty as prescribed in Schedule 4 of the Customs Tariff Act 1995.
The obligations imposed by this Act on the parties involved, particularly the CEO, are to assess applications for TCOs against the core criteria (section 269C) and ensure that the goods are not substitutable by Australian-produced goods. The CEO must also publish a notice in the Gazette inviting submissions from interested parties (subsection 269K(1)) and consider any submissions received before making a decision. If no submissions are received, as in the case of TCO No. 1026592, the TCO can be issued as soon as practicable after the application is deemed valid. Importers, as beneficiaries of the TCO, can apply for a refund of duty on goods imported since the day the TCO is taken to have come into force (paragraph 126(1)(r) of the Regulations).
In terms of offences and penalties, the Act does not explicitly state the consequences of non-compliance with the TCO provisions. However, general provisions within the Customs Act 1901 and related regulations likely apply. These could include fines or other penalties for incorrect declarations or fraudulent claims, but the exact penalties would depend on the specifics of the breach and other applicable laws. The TCO itself does not impose any liabilities on any person (subsection 269S(1)), ensuring that it does not disadvantage any party or create new liabilities for actions taken before the TCO's effective date.