EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1111524
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.
Lock Jaw Ladder Grip applied for a TCO in respect of certain ladder gutter clamps on 05 April 2011.
Instrument
TCO No 1111524 was made on 20 June 2011. It declares that those certain ladder gutter clamps 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. 1111524 is taken to have come into force on 05 April 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 was amended to introduce the scheme for Tariff Concession Orders (TCOs), which allows for the reduction of customs duty on certain imported goods, enacted by the Parliament of Australia. The intent of this legislation is to provide economic relief by making essential goods more affordable through tariff concessions, thereby facilitating easier access to these goods without burdening local production. Specifically, the Act addresses the gap in providing a mechanism for applying lower customs duties on specific imported goods that are not being produced domestically, ensuring that such concessions do not disadvantage local industries. The Tariff Concession Instrument No. 1111524, issued on 20 June 2011, exemplifies this legislative intent by providing a tariff concession on certain ladder gutter clamps, allowing for their importation at no customs duty, thereby promoting economic efficiency and consumer access to affordable goods.
Scope and Application
The Customs Act 1901, as extended by the Tariff Concession Instrument No. 1111524, applies to any person or entity seeking a tariff concession order (TCO) for goods that are subject to a lower rate of customs duty. This legislative instrument specifically governs applications for tariff concessions, whereby the Chief Executive Officer of Customs (CEO) may grant a lower rate of duty if the goods are not substitutable by any produced in Australia and if the application meets certain criteria. This act applies to the Commonwealth level, with the concessions granted affecting the importation rights and duties of the entities importing the specified goods. The TCO No. 1111524 applies to certain ladder gutter clamps, declaring them subject to a free rate of duty as no substitutable goods are produced in Australia. The legislation does not apply to goods specified in section 269SJ of the Customs Act 1901, which outlines goods that cannot be subject to a TCO. The CEO must publish a notice in the Gazette inviting submissions against the TCO application, although in this instance, no submissions were received. The TCO is effective from the date the application was lodged, providing beneficial rights to importers, including the ability to apply for a refund of duty on goods imported since the effective date, without imposing any liabilities on persons other than the Commonwealth.
Key Provisions
The Customs Act 1901, as modified by Tariff Concession Instrument No. 1111524, introduces a system through which the Chief Executive Officer of Customs (CEO) can grant Tariff Concession Orders (TCOs) to certain imported goods, effectively reducing or eliminating customs duties on them. Under section 269F, an individual or entity can apply for a TCO, which would then be subject to scrutiny by the CEO. If the application complies with the core criteria outlined in section 269C, and is not disqualified under section 269SJ, the CEO must issue a written TCO (section 269P(3)). This particular instrument, TCO No. 1111524, pertains to specific ladder gutter clamps, declaring them as eligible for a duty-free rate, as per item 50 of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations on the CEO and applicants. For instance, under section 269K(1), the CEO must publish a notice in the Gazette, inviting any person who might object to the TCO to submit their views. The definitions of "goods produced in Australia," "ordinary course of business," and "substitutable goods" are crucial for determining whether an application meets the core criteria. The CEO must also ensure that the TCO does not disadvantage any person or impose liabilities on anyone for actions taken before the TCO comes into force (subsection 269S(1)).
Should any party breach the obligations set forth in the Customs Act 1901 or the regulations, they may face legal consequences. The exact nature of these consequences would depend on the specifics of the breach, but the Act does not outline explicit penalties within this particular instrument. However, general breaches of customs regulations could result in civil or criminal penalties as stipulated in other sections of the Act. For instance, false statements or misrepresentations could lead to fines or imprisonment, depending on the severity of the offence.