Overview

The Tariff Concession Instrument No. 1133801 was enacted in 2012 under the Customs Act 1901 to address the issue of tariff concessions for specific goods. The instrument was introduced to provide a lower rate of customs duty for certain plant ties, as applied by McPherson's Consumer Products Pty Ltd, which were not substitutable by goods produced in Australia. The Tariff Concession Orders (TCOs) scheme allows the Chief Executive Officer of Customs to make such orders if an application is not in respect of prohibited goods and meets the core criteria of the Act. The policy objective of this instrument was to facilitate the importation of these specific goods by reducing the duty, thereby benefiting importers without imposing any new liabilities. The instrument came into force on the day the application was lodged, 6 October 2011, and importers of these goods can apply for a refund of duty under the regulations.

Scope and Application

The Customs Act 1901, as amended, provides a framework under which Tariff Concession Orders (TCOs) may be issued by the Chief Executive Officer of Customs (CEO) to apply a lower rate of customs duty on specified goods. This process is particularly relevant to individuals or entities seeking to import goods for which a TCO has been applied. The scope of the Act includes any application made under section 269F, provided the goods do not fall under the exclusions listed in section 269SJ. The CEO's decision to issue a TCO is contingent upon meeting the core criteria set out in section 269C, which requires that no substitutable goods are produced in Australia at the time of application. The geographic reach of this legislation is national, applying across all states and territories of Australia. The instrument in question, TCO No. 1133801, specifically applies to certain plant ties and was made on 4 January 2012, following an application by McPherson's Consumer Products Pty Ltd on 6 October 2011. The TCO became effective on the date of the application, and it does not affect any pre-existing rights or impose new liabilities on persons other than the Commonwealth.

Key Provisions

The main operative sections of the Customs Act 1901, as outlined in this Instrument, focus on the process for Tariff Concession Orders (TCOs). Specifically, section 269F (1) allows a person to apply to the Chief Executive Officer of Customs (the CEO) for a TCO in respect of goods. Section 269C sets out that the CEO must determine if the application meets the core criteria, which is that no substitutable goods were produced in Australia on the day the application was lodged. If the CEO is satisfied, they must make a written order, as per section 269P(3), declaring the goods to which the concession applies. In this case, McPherson's Consumer Products Pty Ltd applied for a TCO for certain plant ties on 6 October 2011, and the CEO made TCO No. 1133801 on 4 January 2012, declaring that these ties are goods to which item 50 of Schedule 4 to the Tariff applies. The Act imposes specific obligations and requirements on the parties involved. The CEO must first ensure that the goods in question do not have substitutable goods produced in Australia, as per section 269C. Once an application is accepted, the CEO must publish a notice in the Gazette, inviting any person who believes the TCO should not be made to lodge a submission, as per section 269K(1). Additionally, the TCO is deemed to have come into force on the day the application was lodged, as per section 269S(1). In this case, the CEO did not receive any submissions in response to the Gazette notice, and the TCO is taken to have come into force on 6 October 2011. The Act also delineates the consequences of breaching its provisions. There are no specific offences, penalties, or civil/criminal consequences outlined in the text for failing to comply with the TCO or the application process. However, the rights of importers will be beneficially affected, and they can apply for a refund of duty on goods imported since the TCO is deemed to have come into force, as per paragraph 126(1)(r) of the Regulations. Importantly, the TCO does not impose any liabilities on any person, ensuring that no one is disadvantaged by the concession.