Overview

The Tariff Concession Instrument No. 1054018, enacted in 2011 under the Customs Act 1901, was introduced to address the need for tariff concessions on specific goods, in this case certain automotive automatic transmission fluid filters, to facilitate smoother trade and reduce import costs for these items. This instrument was developed in response to an application by GUD Automotive Pty Ltd and follows the legislative framework established under Part XVA of the Customs Act 1901, which allows the Chief Executive Officer of Customs to grant tariff concessions where certain criteria are met. The policy objective is to ensure that when the CEO determines an application for a tariff concession order meets the core criteria, such as the absence of substitutable goods produced in Australia, a concession can be granted effectively. The instrument was made after no objections were raised in response to a public notice inviting submissions, and it came into effect on the date the application was lodged.

Scope and Application

The Tariff Concession Order No. 1054018, made under the Customs Act 1901, pertains specifically to certain automotive automatic transmission fluid filters. This legislation applies to GUD Automotive Pty Ltd and, by extension, to any other entities or individuals involved in the import of these specific goods. The application of the Act is focused on the goods themselves, aiming to provide a lower rate of customs duty to those that qualify under the specified conditions. The geographic scope of this legislation is national, as it applies across Australia and is enforced by the Commonwealth through the Chief Executive Officer of Customs. The Act does not impose any exclusions or exemptions explicitly stated in the explanatory statement, although it is contingent upon the absence of substitutable goods being produced in Australia. The core criteria for eligibility are clearly defined within the Act, particularly under sections 269C, 269D, 269E, and 269SJ. The instrument may be extended or restricted through subordinate instruments, ensuring flexibility in its application based on changing economic and industrial circumstances.

Key Provisions

The key operative sections of this legislation are sections 269C, 269F, 269P, and 269SJ of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods, provided the goods are not specified in section 269SJ, which lists those goods that cannot be subject to a TCO. If the application meets the core criteria set out in section 269C, the CEO must make a written order declaring that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (paragraph 269P(3)). The tariff concession order specifies the rate of duty applicable to the goods. In this case, TCO No. 1054018 declares that certain automotive automatic transmission fluid filters are subject to a free rate of duty, rather than the general rate of 5%. The Act imposes certain obligations on parties applying for a TCO. First, the application must be made to the CEO and must not be in respect of goods specified in section 269SJ of the Act. Second, the applicant must demonstrate that the application meets the core criteria specified in section 269C. This involves showing that, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Substitutable goods are defined in section 269D, ordinary course of business is defined in section 269E, and substitutable goods in respect of goods the subject of a TCO application are defined in section 269D. If the CEO is satisfied that the application meets these criteria, a TCO must be made. The CEO must also publish a notice in the Gazette inviting submissions from any person who considers that there are reasons why the TCO should not be made, as required by section 269K(1). Failure to comply with the requirements of the Customs Act 1901 can result in various civil or criminal consequences. However, the explanatory statement does not specify the exact nature of these consequences or the maximum penalties that may be imposed. The explanatory statement does note that 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 the affected 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 paragraph 126(1)(r) of the Regulations.