EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1108054
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.
Bluescope Steel applied for a TCO in respect of certain steel injection station belt conveyors on 02 March 2011.
Instrument
TCO No 1108054 was made on 23 May 2011. It declares that those certain steel injection station belt conveyors 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. 1108054 is taken to have come into force on 02 March 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 Tariff Concession Instrument No. 1108054, enacted in 2011 under the Customs Act 1901, addresses the need for tariff concessions to facilitate the importation of specific goods, in this case, certain steel injection station belt conveyors, without incurring customs duty. This instrument was introduced to provide economic benefits to Australian businesses by reducing the cost of importing these particular goods. The Customs Act 1901 allows the Chief Executive Officer of Customs to make Tariff Concession Orders, which apply a lower rate of customs duty to goods that meet certain criteria, such as the absence of substitutable goods produced in Australia. The instrument was made on 23 May 2011, following an application by Bluescope Steel, and came into force on 02 March 2011, the date the application was lodged. The policy objective is to support Australian industries by ensuring that businesses can access necessary imported goods at a reduced cost, thereby promoting economic efficiency and competitiveness.
Scope and Application
The Tariff Concession Instrument No. 1108054 applies to the specific category of goods, namely certain steel injection station belt conveyors, as identified by Bluescope Steel in their application. The application of this Instrument falls under the purview of the Customs Act 1901, specifically Part XVA, which facilitates the establishment of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The TCO applies to the goods specified in the order, providing them with a concession on customs duty, reducing it to free from the general rate of 5%. The Instrument is designed to benefit importers by allowing them to apply for a refund of duty on the specified goods imported since the day the TCO is deemed to have come into force, without imposing any liabilities on the importers or other persons. The Instrument does not extend to goods specified in section 269SJ of the Act, which are ineligible for TCOs, and does not affect the rights of any person, other than the Commonwealth, in respect of actions taken before the date of the TCO's registration.
The geographic and jurisdictional reach of this Instrument is national, as it pertains to the application of the Customs Act 1901, which is a Commonwealth Act. Any exclusions or exemptions are implicitly determined by the criteria set out in the Act, such as the ineligibility of certain goods from receiving TCOs. The application of the TCO may be extended or restricted through subordinate instruments, although this particular Instrument does not elaborate on such mechanisms.
Key Provisions
The Tariff Concession Instrument No. 1108054, made under the Customs Act 1901, establishes a tariff concession order (TCO) for certain steel injection station belt conveyors. Section 269F of the Act permits an application for a TCO by a person, in this case, Bluescope Steel, for specific goods not listed in section 269SJ of the Act, which prohibits certain goods from being subject to a TCO. If the Chief Executive Officer (CEO) of Customs is satisfied that the application meets the core criteria, as defined in section 269C, they must make a written TCO order.
The obligations under this Act primarily involve the CEO of Customs, who must assess applications to ensure they meet the core criteria (section 269C) and that the goods are not specified in section 269SJ. The CEO must also publish a notice in the Gazette inviting submissions if the application is accepted as valid, as per section 269K(1). In this instance, the CEO made the TCO No. 1108054 on 23 May 2011, declaring that the certain steel injection station belt conveyors are subject to item 50 of Schedule 4 to the Customs Tariff Act 1995, effective from 02 March 2011, when the application was lodged (subsection 269S(1)).
The TCO does not retroactively affect the rights of any person other than the Commonwealth or impose liabilities for actions taken before the TCO's effective date. Importers benefit from this TCO as they can apply for a refund of duty on goods imported since the TCO came into force (paragraph 126(1)(r) of the Regulations).
Failure to comply with the provisions of the Customs Act 1901 may lead to civil or criminal consequences, depending on the nature and severity of the breach. Under the Customs Act, penalties for breaches can include fines and imprisonment. The maximum penalties for serious breaches can be substantial, but the specific penalties for this particular TCO are not detailed in the explanatory statement. Importers or other affected parties who do not comply with the requirements or misuse the concessions provided by the TCO may face legal action, including fines and potential imprisonment for more severe violations.