Overview

The Tariff Concession Instrument No. 1049168 was enacted as a measure under the Customs Act 1901 to provide relief on customs duties for specific goods, addressing the issue of high tariff rates that could impede their import. This instrument was introduced by the Chief Executive Officer of Customs following an application by FMP Group Australia for tariff concessions on programmable logic controlled brake pad manufacturing machines. The Act empowers the CEO to make Tariff Concession Orders (TCOs) that reduce the duty on certain goods if no substitutable products are produced in Australia. The objective of this instrument, as outlined in the explanatory statement, is to facilitate the import of these specialised machines by applying a zero duty rate instead of the general 5% duty, thus promoting economic efficiency and supporting industrial needs. The instrument was published in the Gazette to allow public consultation, though no objections were raised, and it came into effect on the date the application was lodged.

Scope and Application

The Customs Act 1901, through its Tariff Concession Orders (TCO) scheme, applies to any individual or entity that seeks to import specific goods into Australia and wishes to benefit from a reduced rate of customs duty. The Act targets goods that are not produced in Australia in the ordinary course of business, as defined under sections 269D and 269E, and ensures that no substitutable goods are domestically produced. The Chief Executive Officer of Customs (CEO) has the authority to make these orders based on applications that meet the core criteria, which notably exclude certain goods specified under section 269SJ. The geographic reach of this legislation is national, as it governs customs duties across Australia. The Act allows for the expansion of its application through subordinate instruments, such as the Customs Tariff Act 1995, which specifies the tariff items that can be subject to concession orders. For instance, TCO No. 1049168 pertains to programmable logic controlled brake pad manufacturing machines, granting them a free rate of duty as opposed to the general rate of 5%. The CEO must also consult by publishing notices in the Gazette, inviting submissions from interested parties, although no submissions were received for TCO No. 1049168. The commencement of a TCO is effective from the date the application is lodged, with no retroactive application affecting pre-existing rights or imposing new liabilities.

Key Provisions

The Tariff Concession Instrument No. 1049168, made under section 269P(3) of the Customs Act 1901 (the Act), provides that the goods specified in the instrument are subject to a tariff concession order (TCO). This means that the normal customs duty of 5% on these goods is reduced to free, as stated in item 50 of Schedule 4 to the Customs Tariff Act 1995 (the Tariff). This concession applies to certain programmable logic controlled brake pad manufacturing machines, as per the application made by FMP Group Australia on 04 November 2010. The Act, specifically section 269C, sets out the core criteria that must be satisfied for a TCO application to be approved. An application meets the core criteria if, on the day it was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269D explains what constitutes 'goods produced in Australia', section 269E defines 'ordinary course of business', and section 269D further explains what 'substitutable goods' means for the purpose of a TCO application. Once the Chief Executive Officer of Customs (the CEO) is satisfied that the application meets these criteria, a written order, or TCO, must be made. The Act imposes obligations on the CEO to consider applications for TCOs and to decide whether they meet the core criteria. Subsection 269K(1) of the Act requires the CEO to publish a notice in the Gazette inviting submissions from any interested parties once an application is accepted as valid. This was done for TCO No. 1049168, but no submissions were received. Additionally, the Act stipulates that a TCO comes into force on the day the application is lodged, which for TCO No. 1049168 was 04 November 2010. Importantly, the TCO does not affect the rights of any person, except the Commonwealth, as at the date of registration, ensuring that no one is disadvantaged or incurs liabilities for actions taken prior to the registration. For breaches of any provisions under the Customs Act 1901 or the Customs Tariff Act 1995, various offences and penalties apply. These may include fines and imprisonment, depending on the nature and severity of the breach. The maximum penalties are specified within the relevant sections of the Acts. For instance, serious breaches may attract fines of up to $220,000 for individuals and $1,100,000 for corporations, along with potential imprisonment terms. Civil consequences can also arise, such as the imposition of additional duties or confiscation of goods, as stipulated by the Acts. It is essential for entities and individuals subject to these Acts to comply with their obligations to avoid these penalties and consequences.