The word “tariff” is constantly in the headlines as of late. Public awareness of tariffs has never been higher - yet so too has the confusion about their impact. For importers and customs brokers, the practical question remains: can duty on these goods be reduced to zero?
In short, if an item can be manufactured in Australia, it’s likely subject to an import fee. The mechanism to avoid this (where possible) is a Tariff Concession Order (TCO). A TCO removes customs duty where there are no known Australian manufacturers producing substitutable goods.
The decisive test for a TCO
The law applies a clear test: a concession may be granted only if, on the day the application is lodged, no substitutable goods were being produced in Australia in the ordinary course of business (s 269C, Customs Act 1901).
What counts as “substitutable goods”?
The Act defines them as goods produced in Australia that are put, or are capable of being put, to a corresponding use as the imported goods - including their design use. Importantly, they do not need to compete in the same market; one corresponding use is enough. Australian Border Force (ABF) guidance reinforces that a product can be deemed substitutable even if it is not identical.
Two related definitions round out the TCO test:
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Produced in Australia: Goods are considered produced locally if they are wholly or partly manufactured in Australia.
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Ordinary course of business: Substitutable goods are considered produced in the ordinary course if they were made in the last two years, are held in stock, or were made intermittently in the last five years and the producer is willing to accept an order.
Why research matters
Industry Capability Network (ICN) Victoria is the only organisation prescribed under regulation 144 of the Customs Regulation 2015 for TCO purposes.
A search conducted by ICN Victoria is accepted as sufficient evidence that an applicant has investigated whether substitutable goods are produced in Australia. In practice, commissioning ICN Victoria’s investigation can satisfy a core evidentiary requirement of a TCO application.
ICN Victoria offers a dedicated Tariff Concession Order Research service geared to these needs. The process is straightforward: applicants supply product details, intended use, and illustrative descriptive material (IDM). ICN Victoria then researches whether substitutable or potentially substitutable goods are made in Australia and issues a report that can be relied upon in the application.
For most importers and brokers, this report is the most efficient path. It not only meets ABF’s evidentiary threshold but also brings independent, up-to-date intelligence on local manufacturing capability - insight that is rarely practical to replicate in-house.
A few facts
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Lodgement: Once the ABF accepts a valid application, it is published in the Tariff Concessions Gazette. Local manufacturers then have a limited window to object - currently 50 days from publication.
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Notice: The Gazette is issued weekly on Wednesdays. With more than 50 new TCOs granted each month, staying across updates is essential for both importers and domestic producers.
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Decision & dates: ABF will not make a decision until the objection period has closed. If a TCO is granted, it takes effect from the date ABF first received the complete application, not the later decision date.
The bottom line
The Tariff Concession Order process is designed to be practical: duty is removed only where no local substitutes exist. The rules are clear, the timelines are short, and the decisive factor is evidence.
At a time when tariff policies are front-page news, ICN Victoria’s TCO research service provides importers and customs brokers a credible, ABF-recognised foundation for applications - while assuring local manufacturers that domestic capability is being tested thoroughly and transparently.
Related links
If you are or represent an importer that would like to utilise ICN Victoria’s TCO research service, please visit:
https://icn.org.au/publications/icn-tariff-duty-concession-application-form/
John Cameron
Senior Industry Research Analyst
Industry Capability Network (ICN) Victoria