Overview

The Tariff Concession Instrument No. 1139264, enacted in 2012, was introduced to address the issue of tariff concessions for specific goods under the Customs Act 1901. This legislation was created to provide relief from customs duty for certain imported goods, in this case, tee ball sets, by the Chief Executive Officer of Customs (CEO) when specific criteria are met. The Customs Act 1901 allows for the application of tariff concessions to goods if no substitutable goods are produced in Australia in the ordinary course of business. Kathmandu Pty Ltd applied for such a concession for certain tee ball sets, and the CEO determined that a tariff concession order (TCO) should be made, leading to the issuance of TCO No. 1139264. The policy objective here is to facilitate the importation of goods that are not domestically produced, thereby potentially lowering costs and increasing availability for consumers. The CEO was required to publish a notice in the Gazette inviting submissions from any person who believed the TCO should not be made, although no such submissions were received. The TCO came into effect on the date the application was lodged, 25 November 2011, and it does not affect any pre-existing rights or impose any liabilities on persons other than the Commonwealth. Importers of the affected goods can apply for a refund of duty paid on imports since the effective date of the TCO, thereby benefiting from the tariff reduction.

Scope and Application

The Tariff Concession Instrument No. 1139264, made under section 269F of the Customs Act 1901, applies to specific goods for which a Tariff Concession Order (TCO) has been granted. In this case, the goods are certain tee ball sets, for which Kathmandu Pty Ltd applied for and was granted a TCO. The TCO provides a lower rate of customs duty on these goods, in this instance, a reduction from the general rate of 5% to a duty-free status. The Act facilitates the application process for TCOs, with the CEO of Customs making the decision based on certain criteria, including the absence of substitutable goods produced in Australia. The scope of the Act extends to any person or entity that may apply for a TCO in respect of goods that meet the specified criteria, and the Act operates on a national level within Australia, as it is a Commonwealth instrument. The TCO does not affect pre-existing rights or impose liabilities on persons other than the Commonwealth, and it applies retroactively from the date of the application, in this instance, 25 November 2011. The Act also allows for consultation, where interested parties can lodge submissions, although in this instance, no submissions were received.

Key Provisions

The main operative sections of this legislation include section 269F, which allows a person to apply to the CEO for a Tariff Concession Order (TCO) in respect of goods, and section 269C, which outlines the core criteria that must be met for a TCO to be granted. Section 269F stipulates that the application must not be for goods specified in section 269SJ, which lists goods that cannot be subject to a TCO. Section 269C specifies that the application meets the core criteria if, on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Additionally, section 269P(3) requires the CEO to make a written order if satisfied that the application meets the core criteria, thereby granting the TCO. The obligations and requirements imposed by this Act on the parties involved include the need for applicants to ensure their applications meet the criteria outlined in section 269C, and for the CEO to assess whether the application complies with these criteria. The CEO must also publish a notice in the Gazette, inviting submissions from any person who believes the TCO should not be made, as per subsection 269K(1). If no submissions are received, the CEO is required to proceed with making the TCO. The TCO's commencement date is the day on which the application was lodged, as specified in subsection 269S(1). Offences and penalties for breach of this legislation are not explicitly detailed in the provided explanatory statement, but the granting of a TCO and the associated tariff concessions are contingent upon strict adherence to the criteria and process outlined in the Act. Failure to comply with the conditions for obtaining a TCO could potentially result in the TCO being revoked or deemed invalid. Importers, however, benefit from the right to apply for a refund of duty on goods imported since the TCO's effective date, as per paragraph 126(1)(r) of the Regulations. Importantly, the TCO does not impose any new liabilities on any person.