Tariff Concession Revocation Order 02/2007

Administered by Attorney-General's Department

Legislation au F2007L00071 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Tariff Concessions Revocation Instrument No. 2/2007

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.

Powerlift Australia Pty Ltd applied for a TCO in respect of forklift trucks in July 2003. In August 2006, Crown Equipment Pty Ltd requested revocation of TCO 0308934, stating that it had reorganised its operations and now qualified as a local producer of forklift trucks. In October 2006, the delegate of the CEO refused to revoke TCO 0308934.

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 0308934.

In December 2006, a delegate of the CEO decided to substitute the original decision to revoke TCO 0308934. The substituted decision was to revoke TCO 0308934.

Instrument

TCO No 0308934 was revoked on 22 December 2006. It declares that “FORKLIFT TRUCKS”, single OR double pantograph reach, rider standing,
battery powered, as defined in AS 2359, comprising ALL of the
following:
   (a) rated load capacity exceeding 1 250 kg for double reach
       and 1 500 kg for single reach at a lift height exceeding
       5 300 mm;
   (b) load capacity NOT greater than 2 100 kg at 600 mm load
       centre;
   (c) operator positioned at right angles OR facing the direction
       of travel;
   (d) hydraulically operated steering;
   (e) operator protection overhead guard;
   (f) travel speed at rated maximum lift height greater than
       3 km/h;
   (g) electric drive motor output greater than 0.8 kW

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. 0308934 originally came into force on 21 July 2003 and hence has been revoked from 22 December 2006.

Overview

The Tariff Concessions Revocation Instrument No. 2/2007 was enacted to address the problem of revoking tariff concessions that were no longer justified due to changes in the production status of certain goods within Australia. This instrument operates under the Customs Act 1901 and was introduced by the relevant federal authority to streamline the process of adjusting tariff concessions in response to local production developments. The policy objective is to ensure that tariff concessions are only granted to goods for which no substitutable goods are produced in Australia, thereby promoting fair competition and supporting domestic industries. The revocation of Tariff Concession Order (TCO) No. 0308934 for forklift trucks, following a request by Crown Equipment Pty Ltd, exemplifies the application of this instrument to maintain the integrity of the tariff concession scheme by adapting to shifts in local production capabilities.

Scope and Application

The Tariff Concessions Revocation Instrument No. 2/2007 applies to the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901, specifically targeting the TCO No. 0308934 for forklift trucks produced by Powerlift Australia Pty Ltd. This Act applies to entities such as Powerlift Australia Pty Ltd and Crown Equipment Pty Ltd, which are involved in the production or importation of goods subject to customs duties and tariff concessions. The scope of the legislation encompasses the process of applying for and revoking TCOs, which are orders that lower the rate of customs duty on specified goods. The Act is applicable nationally within Australia, governed by the Commonwealth, and its provisions extend to the entire industry dealing with goods subject to customs duties and tariff concessions. The Act does not specify exclusions or exemptions beyond those outlined in section 269SJ of the Customs Act 1901, which lists goods that cannot be subject to a TCO. The Act’s application can be extended or restricted through subordinate instruments, which may provide additional definitions or procedural requirements for the revocation of TCOs.

Key Provisions

The Customs Act 1901 (section 269F) permits individuals or entities to apply for a Tariff Concession Order (TCO) from the Chief Executive Officer (CEO) of Customs. A TCO allows for a lower rate of customs duty on specified goods if certain criteria are met. Specifically, section 269C stipulates that an application will meet the core criteria if, on the day the application is made, no substitutable goods are produced in Australia in the ordinary course of business. The definitions of "goods produced in Australia," "ordinary course of business," and "substitutable goods" are provided in sections 269D, 269E, and 269F, respectively. If the CEO determines that the application meets these criteria, they must issue a written order (section 269P(3)) declaring that the specified goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995. The Act imposes specific obligations on the CEO when considering a request for the revocation of a TCO. Upon receiving such a request, the CEO must decide whether the application meets the core criteria for revocation. This decision-making process includes considering the request for revocation, all relevant information, documents, and materials previously considered, and any new information provided by the applicant for reconsideration (section 269SH(5)). The CEO must make a decision on the reconsideration within 60 days of the application for reconsideration (section 269SH(5)). If the CEO decides to substitute another decision upon reconsideration, that substituted decision is deemed to have been made at the time of the original decision, and if it involves revoking a TCO, the revocation takes effect from the date it would have if the original decision had involved revocation (sections 269SH(8) and 269SH(9)). The Customs Act 1901 imposes several consequences for non-compliance with its provisions regarding TCOs. While the Act does not explicitly list offences or penalties related to TCOs, breaches of customs laws generally can lead to substantial fines and imprisonment. For instance, under section 139 of the Customs Act 1901, the maximum penalty for importing goods in contravention of the Act is $22,000 or three times the value of the goods, whichever is greater, or imprisonment for up to five years. Additionally, under section 239, the maximum penalty for contravening a provision of the Customs Tariff Act 1995 is $11,000 or imprisonment for up to two years. Furthermore, administrative penalties can be imposed for providing false or misleading information, which can include fines up to $22,000 or imprisonment for up to two years (section 139A).

Area of Law: Customs & International Trade Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Licensing & Registration; Repeal & Amendment; Enforcement Powers

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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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