Overview

The Tariff Concession Instrument No. 1047746, enacted under the Customs Act 1901, was introduced to provide a concession on customs duty for certain satellite tracking antennas, as applied by MR Marine Electronics. This instrument was made on 17 January 2011 and came into force on the date of the application, 26 October 2010. The purpose of the instrument is to allow a lower rate of customs duty, specifically free duty, on these antennas by the Chief Executive Officer of Customs, provided no substitutable goods were produced in Australia. The Customs Act 1901 allows for such tariff concessions to be applied to goods that meet certain criteria, and this instrument was made in response to an application from MR Marine Electronics. The policy objective is to facilitate the import of these goods at a reduced duty rate, thereby potentially lowering costs for importers and encouraging the use of these goods in Australia.

Scope and Application

The Tariff Concession Instrument No. 1047746, under the Customs Act 1901, applies to a specific category of goods, namely certain satellite tracking antennas, as identified by MR Marine Electronics in their application submitted on 26 October 2010. This instrument, issued by the Chief Executive Officer of Customs, grants a tariff concession, reducing the customs duty from the general rate of 5% to free of charge, provided that the application meets the core criteria outlined in section 269C of the Act. These criteria include the condition that no substitutable goods were produced in Australia in the ordinary course of business on the date the application was lodged. The instrument is effective as of the date of the application, 26 October 2010, and does not retroactively affect the rights of any person or impose any liabilities. The instrument operates under the national jurisdiction of the Commonwealth and does not disadvantage any person other than the Commonwealth, potentially benefiting importers by allowing them to apply for duty refunds on the goods imported since the effective date of the concession.

Key Provisions

The Customs Act 1901, under section 269F, allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO). If the CEO is satisfied that the application meets the core criteria, they must make a written order, a TCO, that declares the goods in question are to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies. The core criteria are set out in sections 269C and 269P(3) of the Act, and require that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Substitutable goods are defined in section 269B of the Act. In this instance, MR Marine Electronics applied for a TCO in respect of certain satellite tracking antennas on 26 October 2010. TCO No. 1047746 was made on 17 January 2011. The CEO was satisfied that no substitutable goods were produced in Australia in the ordinary course of business, and the TCO applies to those certain satellite tracking antennas. The general rate of duty on these goods is 5%, but the rate of duty for the goods subject to the TCO is free. The CEO has several obligations under the Act when processing a TCO application. Under section 269K(1) of the Act, the CEO must publish a notice in the Gazette as soon as practicable after accepting a TCO application as a valid application. The notice must include 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. In this case, the CEO did not receive any submissions in response to the notice. Under section 269S(1) of the Act, a TCO is taken to have come into force on the day on which the application for the TCO was lodged. TCO No. 1047746 is taken to have come into force on 26 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. 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. Under section 269ZC of the Act, the maximum penalty for a contravention of a TCO is $22,000 or five times the value of the goods involved in the contravention, whichever is greater. There is also a civil penalty of $1,100 for each day the contravention continues after the contravention is first detected. The TCO does not impose any liabilities on any person.