EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1055955
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.
Haulmax Pty Ltd applied for a TCO in respect of certain off highway rear dump truck cooling assembly parts on 23 December 2010.
Instrument
TCO No 1055955 was made on 16 March 2011. It declares that those certain off highway rear dump truck cooling assembly parts 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. 1055955 is taken to have come into force on 23 December 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 Customs Act 1901 was enacted to provide for the collection of customs duty and to regulate the importation and exportation of goods. The Act was introduced to address the need for a comprehensive legal framework governing customs duties and related activities. Part XVA of the Customs Act 1901, under which Tariff Concession Orders (TCOs) may be made, was introduced to provide a mechanism whereby the Chief Executive Officer of Customs can grant tariff concessions for specific goods. This is intended to assist Australian industries by reducing the customs duty on certain imported goods, thereby making them more competitive with locally produced goods. This instrument, the Tariff Concession Instrument No. 1055955, was made by the Chief Executive Officer of Customs under section 269F of the Act. The policy objective of this instrument is to support Australian industries by providing tariff concessions on certain imported goods, ensuring that they can compete effectively with locally produced goods.
Scope and Application
The Tariff Concession Instrument No. 1055955 under the Customs Act 1901 applies to Haulmax Pty Ltd, specifically regarding certain off highway rear dump truck cooling assembly parts. The instrument is a response to an application made by Haulmax Pty Ltd to the Chief Executive Officer of Customs, who has the authority to make Tariff Concession Orders (TCOs) under section 269F of the Act. This particular TCO applies to goods that attract a lower rate of customs duty, as outlined in item 50 of Schedule 4 to the Customs Tariff Act 1995. The instrument's jurisdictional reach is national, encompassing the Commonwealth of Australia, and it extends to the entire industry dealing with the importation of specified goods. Exclusions from this Act include goods listed in section 269SJ of the Customs Act 1901, which are ineligible for TCOs. The application process mandates that the CEO must ensure that the goods in question are not substitutable by Australian-made products before approving the TCO. This TCO became effective from the date of application on 23 December 2010, without imposing any liabilities or disadvantaging any party, while potentially benefiting importers by allowing them to claim duty refunds on imported goods since the effective date.
Key Provisions
The main operative sections of this legislation, specifically Tariff Concession Instrument No. 1055955, relate to the Customs Act 1901 (section 269C) and its associated schedule. This instrument allows for a Tariff Concession Order (TCO) to be issued by the Chief Executive Officer of Customs (section 269P(3)). This particular TCO No. 1055955, issued on 16 March 2011, concerns certain off highway rear dump truck cooling assembly parts, declaring them to be subject to item 50 of Schedule 4 to the Customs Tariff Act 1995. This means that the general customs duty rate of 5% is waived for these specific goods. The TCO came into effect on the date the application was lodged, which was 23 December 2010 (section 269S(1)).
The obligations and requirements imposed by this Act on the parties and entities it governs include the necessity for an application to be made to the CEO by a person (section 269F). The CEO must then determine whether the application meets the core criteria outlined in the Act. The CEO must publish a notice in the Gazette inviting any interested parties to submit any objections to the TCO (section 269K(1)). If no submissions are received, the CEO proceeds to issue the TCO. The TCO, once issued, will be effective from the date of application lodging and will not affect any rights or liabilities accrued before this date (section 269S(1)).
In terms of offences, penalties, or consequences for breaches of this legislation, the Act does not specify any criminal penalties for failing to comply with a TCO. However, any breach of the conditions stipulated in the TCO may result in civil consequences such as the imposition of fines or other penalties as determined by the relevant authorities. The maximum penalties for breaches are not explicitly stated within this particular TCO but would typically be outlined in the broader Customs Act 1901 or associated regulations.