EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1044650
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.
J M Gillies applied for a TCO in respect of certain fishing kits on 01 October 2010.
Instrument
TCO No 1044650 was made on 20 December 2010. It declares that those certain fishing kits 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. 1044650 is taken to have come into force on 01 October 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. 1044650, made under the Customs Act 1901, was enacted to provide tariff concessions for specific fishing kits, addressing a gap in duty-free access for these goods. This instrument was introduced to facilitate easier importation and potentially boost the availability and affordability of these kits within Australia. The Customs Act 1901, administered by the Parliament of Australia, aims to streamline trade processes by allowing for such concessions where applicable, thereby enhancing economic benefits and access to specific goods. The order was made on 20 December 2010 by the Chief Executive Officer of Customs, who was satisfied that no substitutable goods were produced in Australia, thereby meeting the core criteria stipulated in section 269C of the Act. The primary policy objective of this order is to ensure that the importation of the specified fishing kits is not hindered by customs duties, thus benefiting importers and potentially end consumers.
Scope and Application
The Tariff Concession Instrument No. 1044650, made under the Customs Act 1901, pertains specifically to the application of tariff concessions on certain fishing kits. This instrument applies to individuals or entities seeking a tariff concession order (TCO) for goods that are not produced in Australia and for which there are no substitutable goods available in the Australian market. The Act allows for the application of a lower rate of customs duty to goods that are the subject of a TCO, provided that the application meets the core criteria stipulated in the Act, namely that no substitutable goods are produced in Australia in the ordinary course of business. This concession is effective from the date the application is lodged, as per the Act's provisions. The application of this Instrument is federal in nature, extending across the Commonwealth of Australia, and it does not disadvantage any person other than the Commonwealth nor impose liabilities on any person in respect of actions taken before the TCO’s registration. The CEO of Customs retains the authority to make subordinate instruments that may further extend or restrict the application of this legislation.
Key Provisions
The Tariff Concession Order No. 1044650 under the Customs Act 1901 (section 269P(3)) was issued on 20 December 2010, following an application from J M Gillies on 01 October 2010 for certain fishing kits. This order provides a tariff concession, reducing the customs duty on these specific fishing kits from the general rate of 5% to free (section 269P(3)). To qualify for such a concession, the Chief Executive Officer of Customs (CEO) must be satisfied that no substitutable goods are produced in Australia, as stipulated by section 269C of the Act. A 'substitutable good' is defined as a good produced in Australia that can be used in the same way as the goods in question, including for design purposes (section 269D and 269E). The CEO must also ensure that the goods do not fall under the category of goods specified in section 269SJ of the Act that cannot be subject to a tariff concession order.
Entities and individuals governed by the Customs Act 1901 must adhere to the obligations set forth in the Act and the associated regulations. This includes the requirement for applicants to demonstrate that no substitutable goods are produced in Australia if they wish to benefit from a tariff concession. The CEO is required to publish a notice in the Gazette inviting submissions from any interested parties once a tariff concession order application is deemed valid (subsection 269K(1)). This ensures transparency and provides an opportunity for stakeholders to voice any concerns regarding the proposed concession. Following the issuance of the order, importers can apply for a refund of any duty paid on the goods imported since the effective date of the tariff concession order, which is the date the application was lodged (subsection 269S(1) and paragraph 126(1)(r) of the Regulations).
Failure to comply with the requirements of the Customs Act 1901 or the regulations may result in various consequences. The Act does not specify particular offences or penalties for breaching the tariff concession provisions, but general provisions of the Act apply, which may include fines or imprisonment depending on the severity of the breach. Additionally, the Act ensures that the tariff concession does not affect the rights of any person, except the Commonwealth, as at the date of registration, and it does not impose any liabilities on any person for actions taken before the registration date (subsection 269S(1)).
In summary, the Tariff Concession Order No. 1044650 provides a tariff concession for certain fishing kits, reducing the customs duty to free. The Act outlines the process for applying for such concessions and the obligations of the CEO in processing these applications. The order became effective on the date the application was lodged, and it does not disadvantage any person or impose liabilities for actions taken before its registration. Importers may seek refunds for any duties paid on the goods imported since the effective date of the order.