Tariff Concession Revocation Order 01/2007

Administered by Attorney-General's Department

Legislation au F2007L00070 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Tariff Concessions Revocation Instrument No. 1/2007

Customs Act 1901

Background

Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.

Under section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.

Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.

Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.

Crown Equipment Pty Ltd applied for a TCO in respect of narrow aisle reach trucks in December 2000. In August 2006, Crown Equipment Pty Ltd requested revocation of TCO 0010047, stating that it had reorganised its operations and now qualified as a local producer of narrow aisle reach trucks. In October 2006, the delegate of the CEO refused to revoke TCO 0010047.

Section 269SH of the Act allows a person affected by a decision in relation to a TCO application, who objects to the making of the decision, to apply to the CEO for its reconsideration.

Subsection 269SH(5) provides that where application is made for reconsideration of a decision made on a request for revocation, the CEO, having regard to:

(a) The request for revocation; and

(b) The information, documents and materials which the CEO was entitled to take into account in considering the request; and

(c) Any new matter produced to the CEO by the applicant for reconsideration which, under subsection (7), the CEO is not prevented from taking into account for that purpose;

must decide, not later than 60 days after the last day for lodgement of the application for reconsideration, whether to affirm the original decision or to substitute any other decision that the CEO might have made.

Under subsections 269SH(8) and (9) of the Act, where the CEO, on reconsideration, decides to substitute another decision, the substituted decision is taken to have been made when the original decision was made and if the substituted decision involves making a TCO, the TCO comes into force on the day on which, if the original decision had involved making the TCO, that TCO would have come into force.

In November 2006, Crown Equipment Pty Ltd requested that the CEO reconsider the decision to revoke TCO 0010047.

In December 2006, a delegate of the CEO decided to substitute the original decision to revoke TCO 0010047. The substituted decision was to revoke TCO 0010047.

Instrument

TCO No 0010047 was revoked on 21 December 2006. It declares that “REACH TRUCKS, NARROW AISLE”, rider seated OR rider standing,
retractable fork arm carriage, as defined in Australian
Standard 2359 Part 7 - 1995, having ALL of the following:
   (a) load capacity exceeding 1 550 kg but NOT exceeding 2 100 kg at
       a 600 mm load centre;
   (b) battery powered;
   (c) cabin width less than 1 230 mm;
   (d) lift height of 5 m to 10.3 m;
   (e) operator positioned at right angles to the direction of
       travel
are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is Free.

Consultation

At the time the request for revocation was lodged, the CEO published a notice in the Gazette in accordance with section 269SC of the Act regarding the fact that a request for revocation had been received. There is no provision for affected parties to lodge a submission with the CEO regarding why the TCO should not be revoked.

However, under section 269SF of the Act, the CEO may seek information, documents or material relating to the revocation. Information was sought from affected party i.e. Crown Equipment Pty Ltd.

Under subsection 269SH(3A), the CEO must publish a Gazette notice (as soon as practicable after receiving a request) stating:

(a) that the request has been lodged; and

(b) the date that the request was lodged; and

Such a notice was published in the Gazette on 11 October 2006.

Commencement

Subsection 269SH(8) provides, in part, if a substituted decision involves the making of a TCO, that TCO comes into force on the day on which, if the original decision had involved making the TCO, that TCO would have come into force. TCO No. 0010047 originally came into force on 11 December 2000 and hence has been revoked from 21 December 2006.

Overview

The Tariff Concessions Revocation Instrument No. 1/2007, enacted under the Customs Act 1901, was introduced to address the revocation of Tariff Concession Orders (TCOs) that were no longer valid due to changes in the production status of the goods concerned. This instrument was established to allow for the reconsideration and potential revocation of TCOs by the Chief Executive Officer of Customs, ensuring that tariff concessions are only applied to goods for which there is no Australian-produced substitute. The enactment of this instrument is a response to situations where the local production capacity for certain goods has evolved, potentially making the tariff concessions unnecessary or inappropriate. This legislative measure was enacted by the relevant authority within the Australian government to ensure that tariff concessions are dynamically managed in accordance with changes in local production capabilities. The policy objective is to maintain fair and efficient customs duty practices by adjusting tariff concessions as necessary to reflect the current economic landscape.

Scope and Application

The Tariff Concessions Revocation Instrument No. 1/2007 is an instrument made under the Customs Act 1901 which pertains to the revocation of Tariff Concession Orders (TCOs) concerning specific goods. This instrument applies to any individual or entity that has previously applied for and received a TCO for particular goods. The revocation of TCO No. 0010047, which pertained to narrow aisle reach trucks, is the specific focus of this instrument. The revocation is a result of the applicant, Crown Equipment Pty Ltd, indicating that it had reorganised its operations and now qualified as a local producer of the goods in question, thereby meeting the criteria for revocation as outlined in the Customs Act 1901. The geographic and jurisdictional reach of this Act is national, as it is a Commonwealth Act, and applies across Australia. The Act specifies that it applies to goods that are subject to a TCO and allows for the revocation of such orders if the conditions that originally warranted the concession are no longer met. Exclusions or exemptions are limited to the goods specified in section 269SJ of the Act, which cannot be subject to a TCO. The application of the Act can be extended or restricted through subordinate instruments, but in this instance, the primary focus is on the revocation of TCO No. 0010047 due to a change in the applicant's operational status. The revocation is effective from the date it was published in the Gazette, which was 21 December 2006.

Key Provisions

The Tariff Concessions Revocation Instrument No. 1/2007, under the Customs Act 1901, primarily concerns the revocation of Tariff Concession Order (TCO) No. 0010047, which was initially granted to Crown Equipment Pty Ltd for narrow aisle reach trucks (sections 269C, 269P(3), 269SH). According to the Act, a TCO can be revoked if it is determined that substitutable goods are now being produced in Australia, as specified in section 269SJ. Crown Equipment Pty Ltd requested the revocation of TCO 0010047 after it claimed to have become a local producer of these trucks. After reconsideration, the Chief Executive Officer (CEO) of Customs decided to revoke the TCO, which officially came into effect on 21 December 2006 (subsection 269SH(8)). The Act imposes several obligations on parties applying for a TCO, particularly ensuring that the goods in question are not substitutable goods produced in Australia, as outlined in sections 269B and 269D. When a request for revocation is lodged, the CEO must publish a notice in the Gazette detailing the request and the particulars of the TCO, as mandated by section 269SC. Additionally, the CEO has the discretion to seek relevant information, documents, or materials to inform the decision, under section 269SF. This was demonstrated when information was sought from Crown Equipment Pty Ltd regarding their operations and production status. Failure to comply with the provisions of the Customs Act 1901, particularly concerning the revocation of a TCO, can lead to various consequences. Although the specific penalties for non-compliance are not detailed in the explanatory statement, general breaches of the Customs Act can result in both civil and criminal penalties. Civil penalties can include fines and forfeiture of goods, while criminal penalties can include imprisonment, reflecting the seriousness with which the Act treats non-compliance. The exact penalties would depend on the specific nature of the breach, but they are significant enough to ensure adherence to the statutory requirements.

Area of Law: Customs & Excise Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Regulatory Standards; Licensing & Registration

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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