EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 04/2007
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 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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 04/2007 was made on
2 January 2007. This instrument revokes 0614750 of classification 3824.74.90 and makes new TCO’s 0614757 of classification 3824.74.90 and 0614758 of classification 3824.78.90. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 04/2007 revokes TCO 0614750 and makes new TCO’s 0614757 and 0614758 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 04/2007 was enacted to address the need for adjustments in tariff classifications under the Customs Act 1901. This legislation, made by the Chief Executive Officer of Customs on 2 January 2007, responds to amendments in the Customs Tariff Act 1995, specifically the changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The primary objective of this instrument is to ensure that the Tariff Concession Orders (TCOs) remain aligned with the updated tariff classifications, thereby maintaining the integrity and effectiveness of the customs duty regime. This revocation and creation of new TCOs reflect the dynamic nature of international trade agreements and the need to adjust domestic legislation accordingly to avoid any disruptions in trade practices.
Scope and Application
The Tariff Concessions Revocation Instrument 04/2007 operates under the Customs Act 1901, specifically concerning Tariff Concession Orders (TCOs) made by the Chief Executive Officer of Customs (the CEO). This instrument applies to goods that were subject to revoked TCOs and their replacement orders. The Act pertains to any entity or individual involved in the importation of goods that are affected by the revoked and new TCOs, primarily focusing on the industries and transactions that involve the importation of goods classified under the revoked and new TCOs. The geographic reach of this Act is national, as it is a Commonwealth Act. The Act does not explicitly outline exclusions, exemptions, or thresholds within this instrument, but it does indicate that the revocation and new orders take effect from 1 January 2007, aligning with changes to the Customs Tariff Act 1995. The application and scope of the Act may be extended or restricted through subordinate instruments, although specific details of such extensions or restrictions are not provided in this particular instrument.
Key Provisions
The Tariff Concessions Revocation Instrument 04/2007, under the Customs Act 1901, primarily deals with the revocation of Tariff Concession Orders (TCOs) and the creation of new TCOs to reflect changes in the Customs Tariff Act 1995. According to section 269SD(2A) of the Customs Act, when a tariff classification stated in a TCO is no longer applicable due to amendments in the Customs Tariff Act, the Chief Executive Officer of Customs (CEO) is mandated to revoke the existing TCO and issue a new one. This was the case with TCO 0614750, which was revoked and replaced by TCOs 0614757 and 0614758, effective from 1 January 2007, as detailed in the instrument.
The obligations imposed by this instrument on the parties involved are primarily related to compliance with the new TCOs. Importers and exporters must ensure that the goods they deal with are classified under the new TCOs, which in this case are 0614757 for classification 3824.74.90 and 0614758 for classification 3824.78.90. The CEO of Customs has the responsibility to issue these new TCOs and ensure that the appropriate tariff classifications are applied to the relevant goods.
The consequences for non-compliance with the new TCOs are significant. Under section 269SJ of the Customs Act, failure to comply with a TCO can result in the imposition of a penalty equal to the amount of duty that would have been payable if the goods had not been the subject of the TCO. This means that businesses could face substantial financial penalties if they do not adhere to the new tariff classifications outlined in the revoked and reissued TCOs. In addition, the Customs Act also provides for the possibility of criminal prosecution for serious breaches, with penalties that can include substantial fines and imprisonment, depending on the severity and intent behind the non-compliance.