EXPLANATORY STATEMENT
Tariff Concession Instrument 3/2006
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 Concessions Instrument No 0602803 was made on 24 January 2006. It revokes TCO 0108813 and makes TCO 0602803. The tariff classification has been changed from 3921.90.90 to 3926.90.90 because the goods are an open weave plastic fabric properly classified to 3926.90.90.
Consultation
No consultation was undertaken since the change is minor or of 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 Instrument No. 0602803 revoked 0108813 and made new TCO 0602803 on 24 January 2006.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, was introduced to address the need for a structured scheme under which Tariff Concession Orders (TCOs) can be made and revoked. This Act, specifically through Part XVA, allows the Chief Executive Officer of Customs to adjust customs duty rates for certain goods, providing lower rates if no substitutable goods are produced in Australia. The 2006 Tariff Concession Instrument 3/2006, which revoked TCO 0108813 and introduced TCO 0602803, was made to correct the tariff classification of specific goods due to a reclassification in the Customs Tariff Act 1995. The policy objective underlying this change was to ensure that the tariff classification accurately reflects the nature of the goods, thereby maintaining consistency and fairness within the customs duty framework. The instrument was enacted without consultation as it was deemed minor and did not substantially alter existing arrangements.
Scope and Application
The Tariff Concession Instrument 3/2006, which amends the Customs Act 1901, applies to goods that benefit from tariff concessions, specifically by reducing the rate of customs duty. This applies to entities and individuals importing goods that are covered by a Tariff Concession Order (TCO). The TCOs are issued under the authority of the Customs Act, with the Chief Executive Officer of Customs responsible for their issuance and revocation. The scope of the Act is national, as it operates under the Commonwealth of Australia. The Act does not require consultation for minor changes like the one described, provided they do not substantially alter existing arrangements. The commencement of the new order and the revocation of the old one is determined by the date from which the tariff classification ceased to apply, with provisions to ensure the changes are effective despite retrospective legislative constraints. Any exclusions or exemptions from the application of the Act would typically be detailed within the specific TCOs themselves, although the explanatory statement does not elaborate on this aspect. The Act’s application may be further extended or restricted through subordinate instruments as needed.
Key Provisions
The main operative sections of this legislation concern Tariff Concession Orders (TCOs) under the Customs Act 1901. Section 269C allows the Chief Executive Officer of Customs (CEO) to make a TCO if the application meets certain core criteria, namely that no substitutable goods were produced in Australia on the day the application was lodged. This is further supported by section 269P, which specifies the conditions under which a TCO can be made. Section 269SD(2) provides the mechanism for revoking a TCO if the tariff classification stated in the TCO is no longer applicable due to an amendment of the Customs Tariff Act 1995, a court decision, or written advice from an officer of Customs. In such cases, the CEO must revoke the existing TCO and make a new one.
Under this legislation, the CEO has specific obligations and requirements. They must ensure that no substitutable goods are being produced in Australia when making a TCO, as per section 269C. The CEO must also monitor the tariff classifications of goods subject to TCOs and revoke and replace any TCO if the tariff classification changes, as outlined in section 269SD(2). This includes considering amendments to the Customs Tariff Act 1995, court decisions, and written advice from Customs officers.
Breaches of the provisions of the Customs Act 1901 and the associated legislation may result in various consequences. While the specific offences and penalties are not detailed in this explanatory statement, it is generally understood that non-compliance with customs duties and regulations can lead to criminal charges, fines, and potential imprisonment. The exact penalties would depend on the nature and severity of the breach, as outlined in the relevant sections of the Customs Act and other applicable laws. The commencement provisions in section 269SD(2) and (4) ensure that the new TCOs and revocations take effect from the day the tariff classification no longer applies, thereby maintaining compliance with the legislative instruments act despite its retrospective prohibitions.