EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 05/2007
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 05/2007 was made on
2 January 2007. This instrument revokes 0614216 of classification 7306.11.00 and makes new TCO’s 0614760 of classification 7306.19.00 and 0614759 of classification 7306.11.00. 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 05/2007 revokes TCO 0614216 and makes new TCO’s 0614760 and 0614759 in its place, with effect from 1 January 2007.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, establishes a framework for the regulation of customs duties and other import charges in Australia. In response to changes in the international tariff system, the Tariff Concessions Revocation Instrument 05/2007 was introduced to address the need for updating tariff classifications under the Customs Tariff Act 1995. This instrument, made on 2 January 2007, revokes certain tariff concession orders and introduces new ones to reflect amendments to the Customs Tariff Act 1995, which took effect from 1 January 2007. The instrument aims to ensure the continued applicability of the customs duty scheme in line with international trade agreements and classifications. The changes are considered minor and do not require consultation, as they pertain to the administrative machinery rather than substantive alterations of existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 05/2007 operates under the Customs Act 1901, specifically within the framework established by Part XVA of the Act, which governs the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument applies to entities or individuals involved in the importation of goods that were previously subject to a TCO and now fall under new tariff classifications as a result of amendments to the Customs Tariff Act 1995. The instrument revokes TCO 0614216 and replaces it with new TCOs 0614760 and 0614759, reflecting changes effective from 1 January 2007. The geographic scope of the instrument is national, as it pertains to customs duties applied across Australia. The instrument does not specify exclusions or exemptions but operates to adjust tariff concessions in line with updated tariff classifications. Any further application or restrictions are managed through subordinate instruments that may be issued under the authority of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 05/2007 under the Customs Act 1901 (sections 269C, 269P, and 269SD(2A)) pertains to the revocation and creation of Tariff Concession Orders (TCOs). Specifically, section 269C and section 269P of the Act allow for the creation of TCOs when certain criteria are met, such as the absence of substitutable goods produced in Australia on the day the application was lodged. Section 269SD(2A) mandates the revocation of existing TCOs if changes in the Customs Tariff Act 1995 alter the tariff classification of the goods covered by the TCO. This instrument revokes TCO 0614216 and introduces new TCOs 0614760 and 0614759, effective from 1 January 2007, in response to amendments in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
The obligations imposed by this legislation on the parties and entities it governs are primarily centred on the Chief Executive Officer of Customs (CEO). The CEO must ensure that the TCOs reflect accurate tariff classifications as per the Customs Tariff Act 1995. When changes to the tariff classifications occur, the CEO is obligated to revoke the existing TCO and issue new TCOs accordingly. This ensures that the correct rates of customs duty are applied to the goods in question.
Failure to comply with the provisions of this legislation may result in legal consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act 1901 can generally lead to civil and criminal penalties. Civil penalties may include fines, while criminal penalties could involve imprisonment, depending on the severity of the breach. The maximum penalties would be in line with the general provisions of the Customs Act 1901 and related statutes, though exact figures are not specified in this particular explanatory statement. The overarching aim is to ensure compliance with the tariff regulations and the accurate application of customs duties.