Objective
Support Australia’s industry competitiveness by lowering costs through relief from customs duty on imported business inputs and consumer items where there is no equivalent Australian production.
Significance for Australia
The Tariff Concession System (TCS) assists industry to become more internationally competitive and reduces costs to the general community by providing for duty free entry of certain goods where there is no local industry that produces those goods.
Most dutiable goods which enter Australia attract the general tariff of five per cent. Tariffs have historically been designed to protect Australian industry from lower priced overseas competition. In keeping with this principle, the TCS provides relief from the general tariff for imports where it can be shown that there is no Australian industry to assist. In such cases, imported business inputs and consumer goods enter duty free.
Importers can apply for a Tariff Concession Order (TCO) under the TCS with the Australian Customs Service. Once a TCO is granted for a particular good it is available to all importers of the good. However, not all imported goods are eligible under the TCS. For example, textiles, clothing, footwear and automotive products are generally excluded because these industries receive support via alternative mechanisms.
Departmental role and current achievements
The Department has policy responsibility to ensure the TCS operates in a way which provides optimal benefits to Australian industry and the economy.
The TCS saved Australian businesses and consumers around $1.225 billion in 2006-07.
Targets and expectations for 2008-09
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Continue to support Australian businesses and the effective ongoing operation of the TCS, and consider recommendations for further changes to the TCS as necessary.
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Relief from duty through the TCS is expected to be around $1.4 billion in 2008-09.
For further information
Phone: 1300 363 263 (within Australia)
Phone: +61 2 6275 5997 (International)
Email: inquiries@innovation.gov.au or TARCON@customs.gov.au
Web: www.innovation.gov.au
Web: www.customs.gov.au
May 2008