Overview

The Tariff Concession Instrument No. 1126916, enacted in 2012, amends the Customs Act 1901 to address the need for tariff concessions for specific goods that are not produced domestically. This instrument was introduced to facilitate the importation of certain goods by providing a concessional rate of customs duty, thereby supporting businesses that rely on importing specific items for their operations. The instrument was enacted by the Chief Executive Officer of Customs as per the provisions outlined in the Customs Act 1901, with the policy objective of ensuring that no substitutable goods are produced in Australia in the ordinary course of business, thereby making the concessional tariff applicable. The instrument came into force on the date the application was lodged, ensuring that the rights of importers are protected without imposing any new liabilities.

Scope and Application

The Tariff Concession Instrument No. 1126916, issued under Part XVA of the Customs Act 1901, applies to specific goods—namely certain presses—and pertains to the application and administration of customs duty concessions as determined by the Chief Executive Officer of Customs (CEO). The instrument is applicable to any entity or individual involved in the importation of these presses into Australia, providing them with a concessional rate of duty as specified by the instrument. This legislative instrument is effective on a Commonwealth level, as it concerns the administration of customs duties which fall under federal jurisdiction in Australia. The instrument does not apply to goods that are specified in section 269SJ of the Customs Act 1901, which lists items ineligible for tariff concessions. Moreover, the instrument does not affect the rights of any person other than the Commonwealth in a manner that would disadvantage them or impose liabilities on them for actions taken prior to the instrument's registration. The instrument was implemented on 10 August 2011, the date on which the application for the tariff concession order (TCO) was lodged, and it came into effect on the same date.

Key Provisions

Section 269F of the Customs Act 1901 (the Act) allows for an application to be made to the Chief Executive Officer of Customs (the CEO) for a Tariff Concession Order (TCO) in respect of specific goods. If the CEO determines that the application does not involve goods that cannot be subject to a TCO, as outlined in section 269SJ of the Act, they must then evaluate whether the application meets the core criteria under section 269C. A TCO application meets these criteria if, on the date of application, there are no substitutable goods being produced in Australia in the ordinary course of business. The meanings of terms such as 'goods produced in Australia', 'ordinary course of business', and'substitutable goods' are provided in sections 269D, 269E, and 269F of the Act, respectively. The obligations imposed by the Act on the parties or entities it governs include the requirement for the CEO to consider the core criteria for a TCO application and to make a written order if satisfied that the criteria are met. The CEO must also publish a notice in the Gazette inviting submissions from any person who believes there are reasons why the TCO should not be made, as per subsection 269K(1) of the Act. In the case of TCO No. 1126916, no submissions were received in response to the invitation for feedback. Furthermore, the Act ensures that the rights of persons other than the Commonwealth are not adversely affected by the TCO, and that the TCO does not impose any new liabilities on any person. In terms of offences, penalties, or consequences, the Customs Act 1901 does not specify any criminal or civil penalties for breach of the Act or the TCO. However, it is important to note that failure to comply with the requirements of the Act or the TCO could potentially result in the revocation of the TCO, leading to the reinstatement of the original duty rates on the goods in question. Importers who have already paid duty on goods imported since the date the TCO is taken to have come into force may be eligible for a refund under paragraph 126(1)(r) of the Regulations. The Tariff Concession Instrument No. 1126916, made on 02 November 2011, declares that certain presses are goods to which item 50 of Schedule 4 to the Customs Tariff Act 1995 applies, resulting in a rate of duty of free, as the CEO was satisfied that no substitutable goods were produced in Australia. The TCO came into force on 10 August 2011, the date on which the application for the TCO was lodged, as per subsection 269S(1) of the Act. The TCO does not affect the rights of any person other than the Commonwealth and does not impose any liabilities on any person.