EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1108416
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.
Sarstedt Australia Pty Ltd applied for a TCO in respect of certain polystyrene pipettes on 8 March 2011.
Instrument
TCO No 1108416 was made on 24 May 2011. It declares that those certain polystyrene pipettes 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. 1108416 is taken to have come into force on 8 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 Customs Act 1901, enacted by the Australian Parliament, established a framework for the imposition of customs duties on imported goods. The Act provides for Tariff Concession Orders (TCOs) that may be made by the Chief Executive Officer of Customs to apply a lower rate of customs duty on certain goods. This legislative measure was introduced to address the need for flexibility in customs duties, particularly to support industries that rely on imported goods and to foster economic efficiency. The objective is to ensure that Australian businesses are not unfairly disadvantaged by high customs duties, thereby promoting competitive and efficient markets. Instrument TCO No. 1108416, issued on 24 May 2011, is a specific instance of this framework in action, granting tariff concessions on certain polystyrene pipettes. The instrument was implemented following an application by Sarstedt Australia Pty Ltd and subsequent confirmation by the CEO that no substitutable goods were produced in Australia, satisfying the core criteria for such concessions.
Scope and Application
The Tariff Concession Instrument No. 1108416, made under the Customs Act 1901, applies specifically to certain polystyrene pipettes as requested by Sarstedt Australia Pty Ltd. The application for a Tariff Concession Order (TCO) was lodged on 8 March 2011, and the instrument was subsequently issued on 24 May 2011 by the Chief Executive Officer of Customs. This instrument declares that the specified polystyrene pipettes are subject to a duty-free concession, as determined by the CEO who was satisfied that no substitutable goods were produced in Australia at the time of the application. The instrument is effective from the date of the application, 8 March 2011, and provides a benefit to importers by allowing them to apply for a refund of duty paid on these goods since that date. The Act applies to persons and entities importing these goods, and it operates within the jurisdiction of the Commonwealth of Australia, impacting trade and customs duties associated with the specified goods. There are no stated exclusions, exemptions, or thresholds in this particular instrument, and it does not disadvantage any person other than the Commonwealth or impose any liabilities for actions taken prior to the instrument's effective date.
Key Provisions
The key operative sections of Tariff Concession Instrument No. 1108416 under the Customs Act 1901 include sections 269C, 269F, 269P, and 269S. Section 269F (1) allows an applicant to request the Chief Executive Officer of Customs (CEO) to consider a Tariff Concession Order (TCO) for certain goods, in this case, polystyrene pipettes. If the CEO determines that the application meets the core criteria outlined in section 269C, they are required to make a written order under section 269P (3), effectively declaring the goods to which the TCO applies. The CEO must also publish a notice in the Gazette under section 269K(1), inviting any interested parties to submit objections. The TCO, once made, is deemed to have come into effect on the date the application was lodged, as stated in section 269S(1).
The obligations imposed on parties under this Act primarily involve the application process for a TCO. The applicant, such as Sarstedt Australia Pty Ltd in this case, must demonstrate that no substitutable goods are produced in Australia in the ordinary course of business, in accordance with sections 269C and 269D. The CEO is then required to evaluate the application against these criteria and, if satisfied, issue a TCO. Additionally, the CEO must ensure that any public submissions received are considered in the decision-making process, although in this instance, no submissions were received. Importers of the affected goods are also entitled to apply for a refund of any duties paid since the TCO was deemed to come into force.
Breaching the terms of a TCO or failing to comply with the requirements set forth in the Customs Act 1901 can result in various civil or criminal consequences. The specific penalties are not detailed in the provided text, but generally, breaches of customs laws can lead to fines, imprisonment, or both. For instance, knowingly making a false statement in a customs declaration could attract significant penalties under the Customs Act, reflecting the seriousness with which customs law violations are treated. The exact penalties would depend on the nature and severity of the breach, but they can include substantial fines and potential imprisonment terms.