Australia's general tariff is 5% — but not on everything, and not irreducibly. A Tariff Concession Order (TCO) is a legal instrument that grants duty-free entry to goods classified under a tariff subheading where no Australian industry produces substitutable goods. For importers of machinery, equipment and industrial inputs, a TCO can eliminate duty on an entire product line permanently.

When a TCO is made

The test is substitution: a TCO is granted for a particular tariff classification only if no Australian manufacturer produces goods that are substitutable for the imported goods — that is, produced in the ordinary course of business and suitable for the same use. If an Australian industry can and does make a substitutable product, the concession is refused or revoked. The scheme's rules and forms are on the ABF's Tariff Concession Order page.

How importers use TCOs

  • Check existing concessions first: published TCOs apply to the tariff classification, not to the applicant — any importer entering goods under a classification covered by a TCO can claim the concessional rate. Searching the TCO register before lodging entries is a basic landed-cost step.
  • Apply where none exists: an importer can apply for a new TCO on Form B443, declaring the goods' classification, description and use. The applicant's obligations — including advertising the application so Australian manufacturers can object — are set out in Home Affairs Notice 2019/21.
  • Object or defend: Australian manufacturers can object to a TCO application on Form B444, and either side can seek revocation later if circumstances change.

The compliance trap: description and use

TCO use is a known ABF audit focus. A TCO covers goods of the described class and their use: importing goods under a classification with a TCO, when the actual goods fall outside the TCO's description, is a duty underpayment — recoverable across five years of entries plus penalties. The safe practice:

  • Match the TCO description against the actual goods and their intended use, not just the heading number.
  • Re-check the TCO register when products or sources change; a revocation removes the concession from that date.
  • Document the match — the same entry file discipline as classification and origin.

How TCOs interact with other savings

Australia's duty landscape is layered: FTAs remove duty on qualifying originating goods, TCOs remove duty regardless of origin where no local industry makes a substitute, and duty deferral under Australian Trusted Trader changes the timing rather than the amount. Importers should compare all three before defaulting to the general rate — on capital equipment and industrial inputs the difference is frequently the entire 5%.