Commonwealth of Australia Bills

[Index] [Search] [Download] [Related Items] [Help]

CUSTOMS LEGISLATION (AUTOMOTIVE COMPETITIVENESS AND INVESTMENT SCHEME) BILL 1998

1996-97-98

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES




Presented and read a first time









Customs Legislation (Automotive Competitiveness and Investment Scheme) Bill 1998

No. , 1998


(Industry, Science and Tourism)


A Bill for an Act to amend Customs legislation to establish the Automotive Competitiveness and Investment Scheme, and for related purposes

Contents

A Bill for an Act to amend Customs legislation to establish the Automotive Competitiveness and Investment Scheme, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Customs Legislation (Automotive Competitiveness and Investment Scheme) Act 1998.

2 Commencement

(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(2) The items of Schedule 1 commence on a day to be fixed by Proclamation.

(3) The items of Schedule 2 commence, or are taken to have commenced, on 1 January 1999.

(4) If an item to which subsection (2) applies does not commence within 6 months after the day on which this Act receives the Royal Assent, that item commences on the first day after the end of that period.

3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendment of the Customs Act 1901

1 After Part XVA

Insert:

Part XVAA—The Automotive Competitiveness and Investment Scheme

Division 1—Preliminary

269SLA Establishment

(1) There is established by this Act a scheme to be known as the Automotive Competitiveness and Investment Scheme.

(2) The scheme comprises 2 subschemes, to be known as the PMVP subscheme and the CMSP subscheme.

269SLB Purpose of ACIS

The purpose of ACIS is to provide transitional assistance to encourage competitive investment and innovation in the Australian automotive industry in order to achieve sustainable growth, both in the Australian market and internationally, in the context of trade liberalisation.

269SLC Definitions

(1) In this Part:

ACIS means the Automotive Competitiveness and Investment Scheme established by section 269SLA.

ACIS ledger means the ledger established by the CEO under section 269SLZC.

approved productive assets means assets of a kind that are declared by the regulations to be approved productive assets for the purposes of this Part.

approved research and development means research and development of a kind declared by the regulations to be approved research and development for the purposes of this Part.

automotive industry participant means a person who, either in Australia or another country:

(a) is engaged in the production or sale of passenger motor vehicles, otherwise than as a PMVP engaged in the production of the PMVP’s own passenger motor vehicle or as a person who onsells a vehicle so produced; or

(b) is engaged in the production or sale of components for passenger motor vehicles; or

(c) is engaged in the repair of passenger motor vehicles.

automotive industry provider contract, in relation to a person, means a contract entered into by that person with a manufacturer of passenger motor vehicles, whether in Australia or otherwise, for the supply by that person to the manufacturer:

(a) of passenger motor vehicle components of a kind prescribed by regulations for the purposes of this paragraph; or

(b) of automotive machine tools or tooling of a kind prescribed by the regulations for the purposes of this paragraph.

automotive industry service contract, in relation to a person, means a contract entered into by that person with a manufacturer of passenger motor vehicles, whether in Australia or otherwise, for the provision by that person to the manufacturer of automotive design, development, engineering or production services.

automotive machine tools and tooling means tools and tooling of a kind prescribed for the purposes of paragraph (b) of the definition of automotive industry provider contract.

CMSP means a passenger motor vehicle component manufacturer, an automotive tool or tooling manufacturer or a provider of automotive design, development, engineering or production services who is registered as a CMSP under section 269SLH.

duty credit means a modulated production credit (whether capped or uncapped) or a modulated investment credit.

eligible imports are goods capable of being entered for home consumption under item 41E of Schedule 4 to the Customs Tariff Act 1995.

eligible investments means:

(a) in relation to a PMVP—type A, type B or type C investments by the PMVP; or

(b) in relation to a CMSP—type D or type E investments by the CMSP.

modulated capped production credit, in relation to a quarter and to a PMVP, means the unmodulated capped production credit (if any) due to that PMVP in respect of that quarter modulated in accordance with section 269SLU.

Note: The operation of section 269SLL can affect the working out of production credits by requiring certain production achieved to be disregarded.

modulated investment credit, in relation to a quarter and to a PMVP or a CMSP, means the unmodulated investment credit (if any) due to that PMVP or CMSP in respect of that quarter modulated:

(a) in the case of the PMVP—in accordance with section 269SLV; or

(b) in the case of the CMSP—in accordance with section 269SLW.

Note: The operation of section 269SLL or 269SLQ can affect the working out of investment credits by requiring certain investment undertaken to be disregarded.

modulated uncapped production credit, in relation to a quarter and to a PMVP, means the unmodulated uncapped production credit (if any) due to that PMVP in respect of that quarter modulated in accordance with section 269SLU.

Note: The operation of section 269SLL can affect the working out of production credits by requiring certain production achieved to be disregarded.

passenger motor vehicle means a car or any other vehicle produced from a passenger motor vehicle platform.

passenger motor vehicle manufacturer means a person who undertakes the production in Australia of passenger motor vehicles.

PMVP means a passenger motor vehicle manufacturer who is registered as a PMVP under section 269SLD.

PMVP production, in relation to a quarter and to a PMVP, means the completion in that quarter by the PMVP of the production of:

(a) passenger motor vehicles; or

(b) engines for passenger motor vehicles that are sold to another automotive industry participant; or

(c) prescribed engine components that are sold to another automotive industry participant.

prescribed engine component means a component for the engine of a passenger motor vehicle that is declared by the regulations to be a prescribed engine component.

quarter means a period of 3 months commencing on 1 January, 1 April, 1 July or 1 September of a year.

relevant quarter, in relation to:

(a) a person registered as a PMVP who lodges a return for a particular quarter under section 269SLL; or

(b) a person registered as a CMSP who lodges a return for a particular quarter under section 269SLQ;

means each of the quarters included within the period comprising:

(c) if that particular quarter is the quarter in which registration of that person as a PMVP or CMSP was granted, or is taken, under section 269SLF or 269SLJ, to have been granted (the registration quarter)—the 8 quarters preceding that particular quarter; and

(d) if that particular quarter is the first quarter following the registration quarter—the 9 quarters preceding that particular quarter; and

(e) if that particular quarter is the second quarter following the registration quarter—the 10 quarters preceding that particular quarter; and

(f) if that particular quarter is any later quarter following the registration quarter—the 11 quarters preceding that particular quarter.

scheme commencement date means 1 January 2001 unless, before that date, an earlier date (which must be the first day of a quarter) is Proclaimed for the purposes of this definition.

type A investment, in relation to a quarter and a person registered as a PMVP, means investment undertaken by the person in that quarter (whether or not that quarter preceded the person’s registration) in that part of the person’s productive assets used to produce passenger motor vehicles, engines or prescribed engine components.

type B investment, in relation to a quarter and a person registered as a PMVP, means investment undertaken by the person in that quarter (whether or not that quarter preceded the person’s registration) in that part of the person’s approved productive assets used:

(a) to produce passenger motor vehicle components (other than engines or prescribed engine components); or

(b) to produce automotive machine tools and tooling; or

(c) to facilitate the delivery of design, development, engineering or production services;

for another automotive industry participant.

type C investment, in relation to a quarter and a person registered as a PMVP, means investment undertaken by the person in that quarter (whether or not that quarter preceded the person’s registration) in that part of the person’s approved research and development that is directed:

(a) at the production of passenger motor vehicle components (other than engines or prescribed engine components); or

(b) at the production of automotive machine tools and tooling; or

(c) at facilitating the delivery of design, development, engineering or production services;

for another automotive industry participant.

type D investment, in relation to a quarter and to a person registered as a CMSP, means investment undertaken by the person in that quarter (whether or not that quarter preceded the person’s registration) in that part of the person’s approved productive assets that:

(a) if the person holds an automotive industry provider contract at some time during that quarter—are used to produce the passenger motor vehicle components or automotive machine tools or tooling to which that contract relates or any other such components or tools in respect of which such a contract might be made; and

(b) if the person holds an automotive industry service contract at some time during that quarter—are used to facilitate the provision of the services to which the contract relates.

type E investment, in relation to a quarter and to a person registered as a CMSP, means investment undertaken by the person in that quarter (whether or not that quarter preceded the person’s registration) in that part of the person’s approved research and development that:

(a) if the person holds an automotive industry provider contract at some time during that quarter—is directed at the production of the passenger motor vehicle components or automotive machine tools or tooling to which that contract relates or any other such components, tools or tooling in respect of which such a contract might be made; and

(b) if the person holds an automotive industry service contract at some time during that quarter—is directed at facilitating the provision of the services to which the contract relates.

Note: Section 269SLQ provides that a type E investment is treated as never having been undertaken in certain circumstances.

unmodulated capped production credit, in relation to a quarter and to a PMVP, means the unmodulated capped production credit (if any) worked out in respect of that PMVP and that quarter in accordance with subsection 269SLM(2).

unmodulated investment credit, in relation to a quarter and to a PMVP or a CMSP, means the unmodulated investment credit worked out:

(a) in respect of that PMVP and that quarter—in accordance with section 269SLN, 269SLO or 269SLP; or

(b) in respect of that CMSP and that quarter—in accordance with section 269SLR or 269SLS.

unmodulated uncapped production credit, in relation to a quarter and to a PMVP, means the unmodulated production credit (if any) worked out in respect of that PMVP and that quarter in accordance with subsection 269SLM(1).

wholesale value, in relation to PMVP production, is to be determined in accordance with subsection (4).

(2) For the purposes of this Part, a person is taken to produce a thing even if the process of production consists entirely of assembling the thing from component parts and the person does not produce any of those component parts.

(3) For the purposes of this Part, a person is taken to produce a thing only at the time when the person sells the thing produced.

(4) For the purposes of this Part, the wholesale value of PMVP production achieved by a PMVP in a particular quarter is a value determined in a manner prescribed by the regulations.

(5) Despite the definition of days in section 4, Sundays and public holidays are counted as days for the purpose of computing a period for the purposes of this Part but nothing in this subsection derogates from the operation of section 36 of the Acts Interpretation Act 1901.

Division 2—Membership of the PMVP subscheme

269SLD PMVP registration applications

(1) A person who is a passenger motor vehicle manufacturer may apply to the CEO for registration as a PMVP if the person, in the 12 months preceding that application, produced 30,000 passenger motor vehicles.

(2) An application must:

(a) be in writing; and

(b) be in an approved form; and

(c) contain such information as the form requires; and

(d) be accompanied by such documents (if any) as the form requires; and

(e) be signed in the manner indicated in the form.

(3) Without limiting the generality of paragraphs (2)(c) and (d), an application for registration must include information or documents as required by the form that relates to the applicant’s capability to comply with the document retention obligations under section 269SLZA.

(4) Without limiting the generality of paragraphs (2)(c) and (d), an application for registration must include a business plan of the applicant containing such particulars as are required by the form.

269SLE When to apply

An applicant for registration as a PMVP can apply at any time more than 30 days after the commencement of this Part.

269SLF Consideration of PMVP registration applications

(1) The CEO must examine the application and:

(a) if he or she is satisfied:

(i) that the applicant has provided the information and documents (if any) required by the approved form; and

(ii) that the applicant conforms to specifications set out in the regulations; and

(iii) that the applicant can comply with the relevant document retention obligations;

must inform the applicant that the application for registration is accepted; and

(b) if not so satisfied, must inform the applicant that the application is refused.

(2) If the CEO, on examination of an application, considers that he or she needs further information before being able to make a decision under subsection (1), the CEO may, by notice in writing given to the applicant, require the applicant to provide the information to the CEO within a period specified in the notice.

(3) If the applicant fails or refuses, within the period specified, either to provide the further information or a reasonable explanation as to why it cannot be so provided, the applicant is taken at the end of that period to have withdrawn the application.

(4) If the application for registration is accepted before the scheme commencement date, the registration, for the purposes of the definition of relevant quarter, has effect as if it had been granted on the scheme commencement date.

269SLG Provision of annual business plans and output information

(1) Each PMVP must, in accordance with the regulations, provide the CEO with a business plan for each calendar year commencing after registration as a PMVP on, or as soon as practicable after, the 31 October immediately preceding the commencement of that particular calendar year.

(2) Each PMVP must also, on each 31 December after registration and before 31 December 2005, provide the CEO with particulars of the number of passenger motor vehicles produced by the PMVP in the year ending on that day.

Division 3—Membership of the CMSP subscheme

269SLH CMSP registration applications

(1) A person may apply to the CEO for registration as a CMSP.

(2) An application must:

(a) be in writing; and

(b) be in an approved form; and

(c) contain such information as the form requires; and

(d) be accompanied by such documentation (if any) as the form requires; and

(e) be signed in the manner indicated in the form.

(3) Without limiting the generality of paragraphs (2)(c) and (d), an application for registration must include information or documents as required by the form that relates to the applicant’s capability to comply with the document retention obligations under section 269SLZA.

(4) Without limiting the generality of paragraphs (2)(c) and (d), an applicant for registration must include a business plan of the applicant containing such particulars as are required by the form.

269SLI When to apply

An applicant for registration as a CMSP can apply at any time more than 30 days after the commencement of this Part.

269SLJ Consideration of CMSP registration applications

(1) The CEO must examine the application and:

(a) if he or she is satisfied:

(i) that the applicant has provided the information and documents (if any) required by the approved form; and

(ii) that the applicant conforms to specifications set out in the regulations; and

(iii) that the applicant holds an automotive industry provider contract or an automotive industry service contract; and

(iv) that the applicant can comply with the relevant document retention obligation;

must inform the applicant that the application for registration is accepted; and

(b) if not so satisfied, must inform the applicant that the application is refused.

(2) If the CEO, on examination of an application, considers that he or she needs further information before being able to make a decision under subsection (1), the CEO may, by notice in writing given to the applicant, require the applicant to provide the information to the CEO within a period specified in the notice.

(3) If the applicant fails or refuses, within the period specified, either to provide the further information or a reasonable explanation as to why it cannot be so provided, the applicant is taken at the end of that period to have withdrawn the application.

(4) If the application for registration is accepted before the scheme commencement date, the registration, for the purposes of the definition of relevant quarter, has effect as if it had been granted on the scheme commencement date.

269SLK Provision of annual business plans

Each CMSP must, in accordance with the regulations, provide the CEO with a business plan for each calendar year commencing after registration as a CMSP on, or as soon as practicable after, the 31 October immediately preceding the commencement of that particular calendar year.

Division 4—Administration of ACIS

Subdivision A—Working out unmodulated production credits and unmodulated investment credits for PMVPs

269SLL PMVPs to make quarterly returns

(1) A PMVP must, within 45 days after the end of each quarter that ends after the scheme commencement date or the date the person became a PMVP, whichever last occurs, lodge with the CEO, in a manner prescribed by the regulations, a return in writing, in an approved form, setting out:

(a) particulars of all PMVP production achieved by the PMVP in that quarter and the wholesale value of that production; and

(b) particulars of the expenditure undertaken by the PMVP in the quarter on type A, type B and type C investment; and

(c) particulars of the overall sales by the PMVP for that quarter and the preceding 3 quarters:

(i) of passenger motor vehicles, engines and prescribed engine components; and

(ii) of passenger motor vehicle components (other than engines or prescribed engine components) and automotive industry tools and tooling, sold to another automotive industry participant; and

(iii) of design, development, engineering and production services sold to another automotive industry participant.

(2) If a PMVP fails, within the 45 days referred to in subsection (1), to provide a return in respect of a quarter, any PMVP production achieved, and any investment undertaken, by that PMVP in that quarter is to be treated, for all purposes of this Part, as if it had never been achieved or undertaken.

(3) If a PMVP, in providing a return in respect of a quarter, fails to cover any particular PMVP production achieved, or any particular investment undertaken, by that PMVP in that quarter, that production or investment is to be treated, for all purposes of this Part, as if it had never been achieved or undertaken.

(4) If a person who is registered as a PMVP makes a return in respect of a particular quarter then, for the purposes of that return:

(a) the person is treated as having been in existence for each of the relevant quarters in respect of the particular quarter whether or not the person was in existence; but

(b) the person is treated as having undertaken no type A, type B or type C investment in each such relevant quarter unless the person in fact undertook such investment in that relevant quarter.

269SLM CEO to work out unmodulated production credits for each PMVP

(1) The CEO must, as soon as practicable after the end of 45 days following each quarter, work out the unmodulated uncapped production credit for that PMVP for that quarter in accordance with the formula:

where:

A is the wholesale value of PMVP production of passenger motor vehicles sold in the Australian and New Zealand markets by that PMVP in the quarter concerned as the PMVP’s own passenger motor vehicles.

B is the top rate of duty for eligible imports on the last day of the quarter concerned.

(2) The CEO must, as soon as practicable after the end of 45 days following each quarter, work out the unmodulated capped production credit for that PMVP in that quarter in accordance with the formula:

where:

A has the meaning provided in subsection (1).

B has the meaning provided in subsection (1).

C is the wholesale value of PMVP production of:

(a) passenger motor vehicles that are sold in markets other than the Australian and New Zealand markets; and

(b) engines that are sold to an automotive industry participant; and

(c) prescribed engine components that are sold to an automotive industry participant;

by that PMVP in the quarter concerned.

269SLN CEO to work out unmodulated type A credit for each PMVP

The CEO must, as soon as practicable after the end of 45 days following each quarter, work out an unmodulated investment credit for each PMVP for that quarter in relation to type A investment in accordance with the formula:

where:

D is the amount of type A investment undertaken by that PMVP in the quarter concerned.

E is the total of type A investment undertaken by that PMVP in all relevant quarters preceding that quarter.

F is the total number of relevant quarters increased by one.

269SLO CEO to work out unmodulated type B credit for each PMVP

The CEO must, as soon as practicable after the end of 45 days following each quarter, work out an unmodulated investment credit for each PMVP for that quarter in relation to type B investment in accordance with the formula:

where:

G is the amount of type B investment undertaken by that PMVP in the quarter concerned.

H is the total of type B investment undertaken by that PMVP in all relevant quarters preceding that quarter.

J is the total number of relevant quarters increased by one.

269SLP CEO to work out unmodulated type C credit for each PMVP

The CEO must, as soon as practicable after the end of 45 days following each quarter, work out an unmodulated investment credit for each PMVP for that quarter in relation to type C investment in accordance with the formula:

where:

K is the amount of type C investment undertaken by that PMVP in the quarter concerned.

L is the total of type C investment undertaken by that PMVP in all relevant quarters preceding that quarter.

M is the total number of relevant quarters increased by one.

Subdivision B—Working out unmodulated investment credits for CMSPs

269SLQ CMSPs to make quarterly returns

(1) A CMSP must, within 45 days after the end of each quarter that ends after the scheme commencement date or the date the person became a CMSP, whichever last occurs, provide to the CEO, in a manner prescribed by the regulations, a return in writing, in an approved form setting out:

(a) particulars of the expenditure on type D investments and type E investments undertaken by the CMSP in that quarter; and

(b) particulars of the overall sales by the CMSP for that quarter and the preceding 3 quarters:

(i) of passenger motor vehicle components and automotive industry tools and tooling; and

(ii) design, development, engineering and production services sold to another automotive industry participant.

(2) If a CMSP fails, within 45 days referred to in subsection (1), to provide a return in respect of the quarter, any investment undertaken by the CMSP in that quarter is to be treated, for all purposes of this Part, as if it had never been undertaken.

(3) If a CMSP, in providing a return for a quarter, fails to cover any particular investment undertaken by the CMSP in that quarter, that investment is to be treated, for all purposes of this Part, as if it had never been undertaken.

(4) If a person who is registered as a CMSP makes a return in respect of a particular quarter then, for the purposes of that return:

(a) the person is treated as having been in existence for each of the relevant quarters in respect of the particular quarter whether or not the person was in existence; but

(b) the person is treated as having undertaken no type D or type E investment in each such relevant quarter unless the person in fact undertook such investment in that relevant quarter

269SLR CEO to work out unmodulated type D credit for each CMSP

The CEO must, as soon as practicable after the end of 45 days following each quarter, work out an unmodulated investment credit for each CMSP for that quarter in relation to type D investment in accordance with the formula:

where:

N is the amount of type D investment by that CMSP in the quarter concerned.

P is the total of the type D investment by that CMSP in all relevant quarters preceding that quarter.

Q is the total number of relevant quarters increased by one.

269SLS CEO to work out unmodulated type E credit for each CMSP

The CEO must, as soon as practicable after the end of 45 days following each quarter, work out an unmodulated investment credit for each CMSP for that quarter in relation to type E investment in accordance with the formula:

where:

R is the amount of type E investment by that CMSP in the quarter concerned.

S is the total of the type E investment by that CMSP in all relevant quarters preceding that quarter.

T is the total number of relevant quarters increased by one.

Subdivision C—Modulation and adjustment procedures

269SLT Minister may make modulation guidelines

(1) The Minister must develop guidelines to determine the manner of modulation of:

(a) an unmodulated uncapped production credit due to a PMVP; and

(b) an unmodulated capped production credit due to a PMVP; and

(c) an unmodulated investment credit due to a PMVP; and

(d) an unmodulated investment credit due to a CMSP.

(2) In developing guidelines for the purposes of subsection (1), the Minister should ensure:

(a) that, at any time, the total of the duty credits assessed by the CEO as being due to a particular PMVP or CMSP in the year ending at that time (whether or not those credits are subsequently transferred to other persons) cannot exceed 5% of the value of sales by that PMVP or CMSP of the goods or services resulting from activities that would entitle, or, but for this section, would entitle, that PMVP or CMSP to a duty credit in respect of that year; and

(b) that the revenue forgone by the Commonwealth as a result of the issuing of duty credits (other than unmodulated uncapped production credits) is not to exceed $2,000,000,000 in total.

(3) Guidelines made for the purposes of subsection (1) are disallowable instruments within the meaning of section 46A of the Acts Interpretation Act 1901.

269SLU CEO to modulate production credits for each PMVP

(1) When the CEO has worked out:

(a) the unmodulated uncapped production credit (if any); and

(b) the unmodulated capped production credit (if any);

in relation to each of the PMVPs and a particular quarter, the CEO must, in a manner set out in the guidelines, modulate the production credit of that kind that is due to that PMVP.

(2) After working out the modulated capped or uncapped PMVP production credit due to a PMVP, the CEO must enter the modulated credit of that kind in the ACIS ledger as a credit due to that PMVP and notify the PMVP accordingly.

269SLV CEO to modulate investment credits for each PMVP

(1) When the CEO has worked out an unmodulated investment credit, in relation to each of the PMVPs and a particular quarter, in respect of type A investment, type B investment and type C investment undertaken by the PMVP in that quarter, the CEO must, in a manner set out in the guidelines, modulate the investment credit due to that PMVP.

(2) After working out the modulated investment credit, the CEO must enter that credit in the ACIS ledger as a credit due to that PMVP and notify the PMVP accordingly.

269SLW CEO to modulate investment credits for each CMSP

(1) When the CEO has worked out an unmodulated investment credit, in relation to each of the CMSPs and a particular quarter, in respect of type D investment and type E investment undertaken by the CMSP in that quarter, the CEO must, in a manner set out in the guidelines, modulate the investment credit due to that CMSP.

(2) After working out the modulated investment credit, the CEO must enter that credit in the ACIS ledger as a credit due to that CMSP and notify the CMSP accordingly.

269SLX Reduction of production credits on 31 December 2004

(1) Subject to subsection (2), any modulated capped production credit and any modulated uncapped production credit recorded in the ACIS ledger as due to a person immediately before 1 January 2005 is reduced, by force of this subsection, by one-third of its value with effect from the commencement of that day.

(2) For the purposes of subsection (1), if a production credit referred to in subsection (1) as reduced by one-third of its value is not a number of whole dollars, it is to be rounded down to the nearest whole dollar.

(3) The CEO must, as soon as practicable after 31 December 2004, adjust the ledger so that credits recorded reflect the effect of subsections (1) and (2).

Subdivision D—Trading in duty credits

269SLY Modulated duty credits transferable

(1) A person recorded in the ACIS ledger as a person to whom a duty credit is due may transfer that credit to another person.

(2) The parties to the transfer of a duty credit must notify the CEO of the transfer by lodging a notification with the CEO in a manner specified in the regulations.

(3) The notification must:

(a) be in writing; and

(b) be in an approved form; and

(c) contain such information as the form requires; and

(d) be signed in the manner indicated in the form.

(4) A transferred duty credit is not available to the transferee until the CEO has adjusted the ledger so as:

(a) to remove that credit from the duty credit balance available to the transferor; and

(b) to enter that credit as a duty credit available to the transferee.

Subdivision E—Limitation of use of production credits in certain circumstances

269SLZ Minister may limit use of certain production credits

(1) The Minister may, by notice in writing published in the Gazette, declare that, with effect from the date of publication of that notice, any modulated capped production credit that falls due to a PMVP may only be used, whether by the PMVP to whom it fell due or by any other person to whom it is transferred, as a credit in respect of motor vehicles falling to item 41E of Schedule 4 to the Customs Tariff Act 1995.

(2) If the Minister makes a declaration, any capped production credit to which it applies can only be used as specified in the declaration.

Division 5—Miscellaneous

269SLZA Document retention obligations

(1) A person who is or has been a PMVP or a CMSP must maintain, or create and maintain, documents that evidence all the particulars contained in each quarterly return provided by the person.

(2) The documents must be maintained by the person for 5 years after the lodging of the return concerned.

(3) If the PMVP or CMSP is required:

(a) by a law of the Commonwealth, of a State or a Territory; or

(b) in accordance with ordinary commercial practice;

to give to another person a document required to be maintained under subsection (1), the PMVP or CMSP is taken to have complied with the requirements under subsection (1) if, after the giving of the document to that other person, the PMVP or CMSP maintains a true copy of the documents certified in accordance with subsection (4) for the period that the document would be required to be maintained under subsection (2).

(4) The PMVP or CMSP may certify a true copy of the document for the purposes of subsection (3) by attaching to the copy a certificate signed by the PMVP or CMSP:

(a) stating that the copy is a true copy of the original document; and

(b) stating that the original document has been given to another person for a reason set out in subsection (3); and

(c) providing particulars of that reason.

269SLZB Lodgment of applications

An application for registration as a PMVP or CMSP may be lodged with Customs:

(a) by leaving it at a place allocated for lodgment of ACIS applications at Customs House, Canberra; or

(b) by posting it by pre-paid post to a postal address specified by Customs in the approved form; or

(c) by sending it by electronic facsimile to a facsimile number specified by Customs in the approved form.

269SLZC Establishment and maintenance of ACIS ledger

(1) The CEO must establish and maintain a ledger, to be known as the ACIS ledger, where the production credits and investment credits due to participants in the ACIS scheme or due to other persons to whom those credits have been transferred are recorded.

(2) When a duty credit recorded in the ACIS ledger as being due to a person is applied by that person in respect of the customs duty payable on an eligible import, the CEO must ensure that the balance of the duty credits available to that person is reduced accordingly.

269SLZD Deregistration

(1) The CEO may, at any time, deregister a PMVP if:

(a) the CEO is satisfied that if the CEO were to consider an application for registration by the PMVP at that time, the application would have been rejected; or

(b) the PMVP is in liquidation; or

(c) the PMVP fails to give the CEO an annual business plan in respect of a calendar year before 31 March of that year.

(2) The CEO may, at any time, deregister a CMSP if:

(a) the CEO is satisfied that, if the CEO were to consider an application for registration by the CMSP at that time, the application would have been rejected; or

(b) the CMSP is in liquidation; or

(c) the CMSP is a natural person—the CMSP is bankrupt; or

(d) the CMSP fails to give the CEO an annual business plan in respect of a calendar year before 31 March of that year.

269SLZE Duty credit entitlements of early participants

(1) In order to ensure that duty credits are available to each person who is registered as a PMVP or a CMSP before the scheme commencement date, the CEO may:

(a) on the basis of existing information concerning the person, make a preliminary estimation of the duty credits that, but for this section, would be likely to be credited to that person in the quarter commencing on the scheme commencement date and in the next following quarter; and

(b) credit that person with such credits on the scheme commencement date.

(2) Subject to subsections (3) and (4), a person credited with a duty credit under this section has no further entitlement to a duty credit in respect of the quarter commencing on the scheme commencement date and the next following quarter.

(3) If the total of the duty credits to which the person would, but for the operation of this section, have been entitled in respect of the quarter commencing on the scheme commencement date and the next following quarter exceeds the total of the duty credits provided on the scheme commencement date, the person is entitled to be credited with duty credits equal to the amount of the excess.

(4) If the total of the duty credits provided to the person on the scheme commencement date exceeds the total of the duty credits to which the person would, but for this section, be entitled in respect of the quarter commencing on that date and the next following quarter, the person’s entitlement to duty credits in respect of subsequent quarters is reduced by the amount of the excess.

2 At the end of subsection 273GA(1)

Add:

(t) a decision by the CEO under section 269SLF to refuse to register a person as a PMVP; or

(u) a decision by the CEO under section 269SLJ to refuse to register a person as a CMSP; or

(v) a decision by the CEO under subsection 269SLZD(1) to deregister a PMVP; or

(w) a decision by the CEO under subsection 269SLZD(2) to deregister a CMSP.
s

Schedule 2—Amendment of the Customs Tariff Act 1995 having effect from 1 January 1999

1 At the end of the last rate of duty in column 3 of each of the headings or subheadings in Schedule 3 that are included in the list below

Add: