EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1115810
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 Pty Ltd applied for a TCO in respect of certain electric resistance seam welder parts on 19 May 2011.
Instrument
TCO No 1115810 was made on 01 August 2011. It declares that those certain electric resistance seam welder 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. 1115810 is taken to have come into force on 19 May 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. 1115810 was introduced under the Customs Act 1901, which was enacted by the Australian Parliament to establish a scheme for the application of tariff concessions on certain goods. This instrument addresses the problem of providing tariff concessions to businesses when specific goods, not produced in Australia in the ordinary course of business, are imported. The purpose is to promote fair trade practices and economic efficiency by allowing reduced customs duty rates on these goods, as long as they meet the criteria set out in the Act. The instrument was enacted to facilitate the application process for tariff concessions, ensuring that the rights of importers are protected while also preventing any potential disadvantages to other parties as a result of the concession.
The instrument was created following an application by Bluescope Steel Pty Ltd for tariff concessions on certain electric resistance seam welder parts. The Chief Executive Officer of Customs determined that the application met the core criteria under section 269C of the Customs Act 1901, as no substitutable goods were produced in Australia. Consequently, the Tariff Concession Order No. 1115810 was issued, declaring that the specified goods are subject to a free rate of duty instead of the general 5% rate. The instrument came into force on 19 May 2011, the date the application was lodged, and provides benefits to importers by allowing them to apply for duty refunds on goods imported since that date.
Scope and Application
The Tariff Concession Instrument No. 1115810, under the Customs Act 1901, applies to the specific goods in question, namely certain electric resistance seam welder parts, and the entity that applied for the concession, Bluescope Steel Pty Ltd. The Act allows for Tariff Concession Orders (TCOs) to be issued by the Chief Executive Officer of Customs, which can reduce the rate of customs duty on eligible goods. This concession is applicable as of the date the application was lodged, which in this case was 19 May 2011, and became effective immediately upon the application's acceptance as valid. The TCO applies to the Commonwealth of Australia, and its jurisdiction extends to the regulation and administration of customs duties. There are no stated exclusions or exemptions in this particular TCO, and the concession is specifically tailored to the goods named in the application. Any broader application or restrictions are subject to the terms set out in the Customs Act 1901 and any relevant subordinate instruments.
Key Provisions
The key provisions of Tariff Concession Order No. 1115810 under the Customs Act 1901 relate to the application and implementation of tariff concessions for certain goods. According to section 269F, a person can apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO) in respect of goods. If the application is valid and meets the core criteria set out in section 269C, the CEO must make a written order declaring the goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 applies (section 269P(3)). In this specific case, Bluescope Steel Pty Ltd applied for a TCO in respect of certain electric resistance seam welder parts on 19 May 2011, and the TCO No. 1115810 was made on 1 August 2011, declaring that these parts are subject to a free rate of duty instead of the general 5% rate.
The obligations and requirements imposed by this Act on the parties involved include the necessity for the CEO to ensure that no substitutable goods are produced in Australia at the time the application is lodged, as per section 269C. Furthermore, the CEO must publish a notice in the Gazette inviting any interested parties to submit objections to the TCO if they believe it should not be made (subsection 269K(1)). In this instance, the CEO did not receive any submissions against the TCO. Additionally, section 269S(1) dictates that the TCO comes into effect on the date the application is lodged, which in this case is 19 May 2011. Importantly, the TCO does not affect any rights of persons (other than the Commonwealth) as at the date of registration and does not impose any liabilities on any person.
In terms of the consequences for breaches of the Act, there are no specific offences or penalties mentioned in the provided text. However, the Act does outline the potential for civil and criminal consequences for non-compliance with its provisions. For example, unauthorised importation of goods can lead to civil penalties, including fines and confiscation of the goods, while more serious breaches may result in criminal penalties, including imprisonment. It is important to note that the maximum penalties for breaches of the Customs Act 1901 can vary depending on the specific offence and the circumstances surrounding it.