1. What is a Tariff Concession Order (TCO)?

A Tariff Concession Order (TCO) lets businesses import certain products without paying import duty, but only if no similar (substitutable) products are made within Australia. It’s all about helping you save money and stay competitive in your industry while supporting local manufacturing. To obtain a TCO, importers must submit a Tariff Concession Order Application to the Australian Border Force (ABF).  

2. What does ‘substitutable goods’ under the Customs Act actually mean?

A product counts as ‘substitutable’ if it’s made in Australia and does the same job as the item you want to import. It doesn’t need to be an exact copy or compete in the same market. Ultimately, ABF makes the final decision, based on the information we and you provide.  

Substitutable goods are goods produced in Australia that are, or are capable of being, used for the same purpose as the imported goods subject to a Tariff Concession Order (TCO). The test for substitutability is broadly applied and focuses on whether there is any overlap in use between the locally made goods and the imported goods. Differences in performance, quality, price, or market of operation are not relevant to this assessment. If at least one corresponding use exists, the goods are considered substitutable.

3. Who can apply for a TCO?

Customers brokers and businesses who wish to reduce tariffs on items probably not made in Australia. 

4. How does ICN help with TCOs?

The Industry Capability Network(ICN) is officially designated as the sole prescribed organisation (under Paragraph 144, Part 16 of the Customs Regulation 2015) tasked to check if there’s any similar locally made product you want to import. The research we do gives you stronger evidence for your applications and helps Australian Border Force (ABF) make a decision.  

For any TCO questions or to kickstart your search, please contact Thuy Ho at tho@icnnsw.org.au with your query. 
 

*Image by Wolfgang Schröpfer from Pixabay