EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 06/2007
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 06/2007 was made on
2 January 2007. This instrument revokes 0614756 of classification 8708.99.99 and makes new TCO’s 0614799 of classification 8708.99.99 and 0614806 of classification 8708.99.91. 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 06/2007 revokes TCO 0614756 and makes new TCO’s 0614799 and 0614806 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 06/2007 was enacted to address discrepancies in tariff classifications as a result of amendments to the Customs Tariff Act 1995, specifically those changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This legislative instrument was introduced to ensure that the customs duty rates applied to certain goods remain accurate and reflective of the current tariff classifications. The instrument revokes existing Tariff Concession Orders (TCOs) that no longer align with the updated tariff classifications and introduces new TCOs to maintain the intended tariff concessions. The revocation and creation of these orders were authorised under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901, with the objective of ensuring that the tariff classifications stated in the TCOs correctly apply to the goods they cover.
Scope and Application
The Tariff Concessions Revocation Instrument 06/2007, made under the Customs Act 1901, applies specifically to the revocation and establishment of Tariff Concession Orders (TCOs) that affect the customs duty rates on certain goods. This instrument pertains to goods classified under the Customs Tariff Act 1995, particularly those that were previously subject to TCO 0614756 of classification 8708.99.99. The instrument revokes this existing TCO and establishes new TCOs, namely 0614799 and 0614806, with new classifications 8708.99.99 and 8708.99.91 respectively. The changes take effect from 1 January 2007, aligning with amendments to the Customs Tariff Act 1995 brought about by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This legislative instrument operates within the Commonwealth jurisdiction and extends to any entity or person involved in the importation of goods affected by these TCOs. There are no exclusions or exemptions specified in this instrument, which operates to ensure the continued application of tariff concessions in line with updated tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 06/2007 under the Customs Act 1901 (sections 269C and 269P) revokes a Tariff Concession Order (TCO) and introduces new ones to reflect changes in the Customs Tariff Act 1995. Specifically, TCO 0614756 of classification 8708.99.99 is revoked and replaced by new TCOs 0614799 and 0614806, both of classification 8708.99.99 and 8708.99.91 respectively. These changes take effect from 1 January 2007, aligning with the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
Under the Customs Act 1901, the Chief Executive Officer of Customs (CEO) is mandated to make these changes if they are satisfied that the tariff classifications stated in the TCO will no longer apply to the goods due to an amendment in the Customs Tariff Act 1995. The CEO must revoke the existing TCO and issue new ones as per the requirements outlined in subsection 269SD(2A). This ensures that the customs duties applicable to the goods remain accurate and in line with the latest tariff classifications.
The obligations imposed by this Act on the parties or entities it governs include ensuring that the goods subject to the TCOs are appropriately classified under the new tariff codes. Importers, exporters, and other relevant stakeholders must adhere to the new TCOs to ensure compliance with the applicable customs duties. The CEO’s role is to oversee this process and make the necessary orders to keep the tariff concessions up to date with the Customs Tariff Act 1995.
Failure to comply with the new TCOs could result in incorrect customs duty payments, leading to potential financial penalties. The maximum penalties for non-compliance are not explicitly stated in the explanatory statement, but they typically include fines and interest on underpaid duties. Importers and exporters must ensure they update their records and processes to reflect the new tariff classifications to avoid any legal or financial repercussions.