EXPLANATORY STATEMENT
Tariff Concession Revocation and Re-Issue Instrument 3/2005
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 and revoked 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 sections 269C and 269P of the Act, a TCO will be made if the application for the TCO meets the core criteria, that is, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business.
Subsection 269SD(2) of the Act provides that if the CEO is satisfied that:
− because of an amendment of the Customs Tariff Act 1995; or
− having regard to a decision of a court of the Administrative Appeals Tribunal; or
− having regard to written advice on the matter given by an officer of Customs;
the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO has not, with effect from a particular day, applied to those goods, the CEO must:
− make an order revoking the TCO with effect from that day; and
− make a new TCO in respect of the goods with effect from the revocation.
Instrument
Tariff Concession Revocation and Re-Issue Instrument No 3/2005 was made on 23 March 2005. It revokes TCO 0401502 and makes TCO 0503094. The tariff classification has been changed from 84248990 to 84248100 because of a tariff classification change.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the order revoking the TCO has effect from the day on which the tariff classification did not apply to the goods. Further the new TCO has effect from the revocation. Subsection 269SD(4) provides that the day may be the day on which the old TCO came into force or a later day.
Subsection 269SD(6) provides that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Revocation and Re-Issue No.3/2005 revoked 0401502 and made new TCO 0503094 on 23 March 2005.
Overview
The Tariff Concession Revocation and Re-Issue Instrument No.3/2005, enacted on 23 March 2005, addresses the need to correct and update tariff concession orders under the Customs Act 1901. This instrument was introduced by the Chief Executive Officer of Customs (CEO) in response to changes in tariff classification, as authorised under sections 269C and 269P of the Act. Specifically, it revokes Tariff Concession Order (TCO) 0401502 and issues a new TCO 0503094 due to a change in tariff classification from 84248990 to 84248100. The objective is to ensure that the correct tariff classification applies to the relevant goods, maintaining the integrity of the tariff concession scheme. The instrument was made without consultation as it constitutes a minor or machinery change that does not substantially alter existing arrangements. The revocation and issuance of the new TCO are effective from the date when the previous tariff classification no longer applied to the goods.
Scope and Application
The Tariff Concession Revocation and Re-Issue Instrument No. 3/2005 applies to the revocation and re-issuance of Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, it revokes TCO 0401502 and establishes TCO 0503094 following a change in tariff classification. The Act applies to any person or entity involved in the importation of goods that are subject to these TCOs, particularly focusing on industries and transactions where tariff concessions impact the duty rates on imported goods. The geographical scope of the Act is national, as it pertains to customs duties across Australia. There are no stated exclusions or exemptions in this particular Instrument, although general exclusions and exemptions under the Customs Act 1901 may apply. The application of the Act may be extended or restricted through subordinate instruments, which are subject to the provisions of the Legislative Instruments Act 2003, notwithstanding any prohibitions on retrospective legislative instruments.
Key Provisions
The Tariff Concession Revocation and Re-Issue Instrument No.3/2005 (F2005L00783) primarily operates under sections 269C, 269P, and 269SD of the Customs Act 1901. This legislative instrument revokes Tariff Concession Order (TCO) 0401502 and issues a new TCO 0503094, effective from 23 March 2005. The revocation and re-issue follow the requirement that if the tariff classification for the goods changes due to amendments in the Customs Tariff Act 1995, the Chief Executive Officer of Customs must ensure the tariff classification remains correctly applied.
The Act imposes obligations on the CEO of Customs to make or revoke TCOs when specific conditions are met, particularly when the tariff classification of goods changes. Section 269SD(2) mandates the CEO to revoke a TCO if, due to a tariff classification change, the original tariff classification no longer applies to the goods. Consequently, the CEO must issue a new TCO reflecting the correct tariff classification. The Instrument specifies that the revocation and re-issue take effect from the date when the tariff classification change becomes applicable to the goods.
Entities or individuals affected by the revoked TCO 0401502 and the newly issued TCO 0503094 must ensure compliance with the new tariff classification, which now stands at 84248100 instead of 84248990. This necessitates updating any relevant documentation and ensuring that customs duties are calculated according to the new tariff classification. The CEO's decision to revoke and re-issue the TCO must be respected and adhered to by all parties involved in the importation or exportation of the affected goods.
The Customs Act 1901 imposes potential consequences for non-compliance with the terms of the TCOs. While the explanatory statement does not specify particular offences under this Instrument, general provisions of the Customs Act may apply. Offences related to incorrect classification or non-compliance with tariff concessions can result in penalties. Under the Customs Act, the maximum penalty for a serious contravention involving incorrect classification can be substantial fines or imprisonment, depending on the severity of the breach. The precise penalties would be determined by the specific nature and circumstances of the offence, as governed by the broader legal framework of the Customs Act.