EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1122169
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.
Sony Australia applied for a TCO in respect of certain radio broadcast receiver sets on 04 July 2011.
Instrument
TCO No 1122169 was made on 26 September 2011. It declares that those certain radio broadcast receiver sets 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. 1122169 is taken to have come into force on 04 July 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 enacted to regulate customs and excise duties and provides the framework for the administration of customs and excise. The Act was introduced to address the need for streamlined customs processes and to facilitate international trade by allowing for tariff concessions on certain goods. Under the authority of the Customs Act 1901, Tariff Concession Orders (TCOs) can be made by the Chief Executive Officer of Customs (CEO), reducing customs duty rates for specified goods. In the case of TCO No. 1122169, the CEO granted a concession for certain radio broadcast receiver sets, effective from 04 July 2011, reducing the duty rate from 5% to free. The policy objective here is to support Australian businesses by making specific goods more affordable, thus potentially stimulating their production and import activities. The CEO published a notice in the Gazette inviting submissions on the proposed TCO, but no objections were received, leading to the issuance of the order on 26 September 2011.
Scope and Application
The Customs Act 1901, as outlined in Tariff Concession Instrument No. 1122169, applies to individuals or entities seeking tariff concessions for specific goods imported into Australia. The Act empowers the Chief Executive Officer of Customs to assess applications for Tariff Concession Orders (TCOs) that lower the rate of customs duty on designated goods. This legislative framework is primarily concerned with the importation of goods and the application of duty rates, ensuring that TCOs are granted only when no substitutable goods are produced in Australia. The application process involves a stringent evaluation by the CEO, who must confirm that the goods in question do not have Australian-made alternatives and meet the criteria set forth in the Act. The instrument's jurisdictional reach is national, as it pertains to the federal customs regime under the Commonwealth of Australia.
Exclusions from the application of TCOs are clearly defined in section 269SJ of the Act, which lists goods that cannot be subject to a TCO. The commencement of a TCO is effective from the date the application is lodged, as per subsection 269S(1) of the Act. Importantly, the TCO does not adversely affect the rights of any person as they stood at the date of registration, nor does it impose any liabilities on individuals or entities other than the Commonwealth. The rights of importers are positively impacted, allowing them to seek refunds for duties paid on the specified goods imported since the effective date of the TCO.
Key Provisions
The Tariff Concession Instrument No. 1122169, made under the Customs Act 1901, primarily provides for a concession on customs duty for certain radio broadcast receiver sets. Specifically, Section 269C of the Act stipulates that a Tariff Concession Order (TCO) can be made if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. This concession is effective from the date the application for the TCO was lodged, as outlined in Section 269S(1) of the Act. The TCO reduces the general duty rate of 5% to free for the specified goods, which are now subject to item 50 of Schedule 4 to the Customs Tariff Act 1995.
The obligations imposed by this Act on the parties involved are primarily on the Chief Executive Officer of Customs (CEO), who must assess applications for TCOs to ensure they meet the core criteria as outlined in Section 269C. If the CEO determines that the application for a TCO meets the criteria, they are mandated to make a written order declaring the goods to which the concession applies. Additionally, as per Section 269K(1), the CEO must publish a notice in the Gazette inviting any interested party to lodge submissions against the proposed TCO. In this instance, no submissions were received.
Failure to comply with the provisions of the Customs Act 1901 may result in civil or criminal consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of customs regulations typically attract penalties that can include fines or imprisonment. The exact penalties would depend on the nature and severity of the breach, as outlined in other relevant sections of the Act or associated regulations.