EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1104085
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.
Amber Technology Pty Ltd applied for a TCO in respect of certain camera supports on 27 January 2011.
Instrument
TCO No 1104085 was made on 18 April 2011. It declares that those certain camera supports 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. 1104085 is taken to have come into force on 27 January 2011.
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, enacted by the Parliament of Australia, establishes a framework for the regulation of customs and excise duties, including provisions for Tariff Concession Orders (TCOs). This legislation was introduced to address the need for a mechanism that allows for tariff reductions on specific goods under certain conditions, thereby promoting trade and economic efficiency. The Tariff Concession Instrument No. 1104085, introduced on 18 April 2011, exemplifies this mechanism by granting a tariff concession on certain camera supports, reducing their duty rate from 5% to free, provided no substitutable goods were produced in Australia. This instrument was made following an application by Amber Technology Pty Ltd, and after ensuring no objections were raised during the consultation period. The policy objective behind this TCO is to encourage the importation of these specific goods by reducing their tariff burden, potentially stimulating market demand and economic activity associated with the use of these camera supports.
Scope and Application
The Customs Act 1901 applies to individuals and entities involved in the importation of goods into Australia, encompassing various industries and transactions involving the importation of goods. Specifically, the Act pertains to applications for Tariff Concession Orders (TCOs), which are mechanisms through which the Chief Executive Officer of Customs can apply lower rates of customs duty on certain goods. The Act's jurisdiction extends to the Commonwealth, and it operates under the authority of the Customs Act 1901 and its associated regulations. Notably, the Act excludes certain goods from being subject to a TCO as specified in section 269SJ. The scope of the Act is further refined through subordinate instruments such as the Customs Tariff Act 1995, which details the specific tariff items applicable to the goods subject to TCOs. The TCO in question, Instrument No. 1104085, applies to certain camera supports, granting them a free rate of duty as opposed to the general rate of 5%, and is effective from the date the application was lodged.
Key Provisions
The primary operative sections of the Tariff Concession Instrument No. 1104085, as outlined in the Customs Act 1901, involve the creation and application of Tariff Concession Orders (TCOs) to specific goods. Section 269F allows an individual or entity to apply for a TCO, and if the Chief Executive Officer of Customs (CEO) deems the application valid and it meets the core criteria set out in section 269C, the CEO must make a written TCO. This particular instrument, TCO No. 1104085, pertains to certain camera supports and specifies the applicable duty rates under the Customs Tariff Act 1995.
The Act imposes several obligations on the parties involved. The CEO must evaluate each TCO application to ensure it meets the core criteria, specifically that no substitutable goods were produced in Australia at the time of the application (section 269C). Once satisfied, the CEO must publish a notice in the Gazette, inviting submissions from any interested parties who might oppose the TCO (subsection 269K(1)). In this case, no submissions were received. Furthermore, the Act mandates that TCOs do not affect the rights of any person other than the Commonwealth as of the registration date, nor impose any liabilities for actions taken prior to registration (subsection 269S(1)).
Should any party fail to comply with the requirements set forth by the Customs Act 1901, there could be significant consequences. While the explanatory statement does not explicitly outline specific offences, penalties, or consequences for non-compliance, the Act generally provides for civil and criminal penalties for breaches. These may include fines and imprisonment, depending on the severity of the violation. The maximum penalties are detailed in other sections of the Act, which would need to be referred to for precise figures and specifics.
In conclusion, the Tariff Concession Instrument No. 1104085 effectively lowers the customs duty for certain camera supports from the general rate of 5% to free, provided the CEO's criteria are met and the TCO is properly implemented. The Act ensures a transparent and fair process for applications, with obligations placed on the CEO to evaluate and publish notices, while also protecting the rights of non-Commonwealth parties. Failure to adhere to these provisions could result in serious legal ramifications.