EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 07/2007
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 07/2007 was made on
2 January 2007. This instrument revokes 0614736 of classification 8708.40.59 and makes new TCO’s 0614803 of classification 8708.40.52 and 0614800 of classification 8708.40.59. 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 07/2007 revokes TCO 0614736 and makes new TCO’s 0614803 and 0614800 in its place, with effect from 1 January 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, established a framework for the regulation of imports and exports through the imposition of customs duties and other charges. The Tariff Concessions Revocation Instrument 07/2007, issued on 2 January 2007, operates under the authority of Part XVA of the Customs Act 1901 to address the need for adjusting tariff concessions in response to changes in the Customs Tariff Act 1995. This instrument revokes the existing Tariff Concession Order (TCO) 0614736 and replaces it with new TCOs 0614803 and 0614800, reflecting the amendments to the Customs Tariff Act 1995 made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which came into effect on 1 January 2007. The revocation and creation of these new TCOs are mandated by the Customs Act to ensure the continued alignment of tariff concessions with updated tariff classifications, thereby maintaining the integrity of the tariff system.
Scope and Application
The Tariff Concessions Revocation Instrument 07/2007 operates under the Customs Act 1901, applying specifically to Tariff Concession Orders (TCOs) made by the Chief Executive Officer of Customs. This instrument is pertinent to goods subject to these orders, aiming to adjust tariff classifications in response to amendments in the Customs Tariff Act 1995. The instrument revokes TCO 0614736 and establishes new TCOs 0614803 and 0614800, reflecting changes mandated by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This legislation has a national reach, affecting all entities and industries involved in the importation of goods that fall under the specified classifications. The application of this instrument is nationwide, encompassing all states and territories within Australia. There are no specified exclusions or exemptions within the instrument, though the scope is limited to the goods affected by the particular tariff classifications outlined. The instrument extends its application through the subordinate legislation, ensuring that the changes in tariff classifications are implemented effectively from the specified date.
Key Provisions
The Tariff Concessions Revocation Instrument 07/2007, as per sections 269C and 269P of the Customs Act 1901, revokes the Tariff Concession Order (TCO) 0614736 for goods classified under 8708.40.59 and replaces it with two new TCOs, 0614803 for goods classified under 8708.40.52 and 0614800 for goods classified under 8708.40.59. This change is effective from 1 January 2007 and is in response to amendments in the Customs Tariff Act 1995, specifically those contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This legislative change is an administrative adjustment, intended to align the tariff concessions with updated tariff classifications.
Under the Customs Act 1901, the Chief Executive Officer of Customs (CEO) is obligated to make TCOs if applications meet the core criteria, which include ensuring that on the day the application is lodged, no substitutable goods are produced in Australia in the ordinary course of business. The CEO is also required to revoke any TCO if, due to amendments in the Customs Tariff Act 1995, the tariff classification stated in the TCO will no longer apply to the goods in question. This obligation is outlined in subsection 269SD(2A) of the Act, which mandates the CEO to issue a revocation order and, if necessary, a new TCO reflecting the updated tariff classifications.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 07/2007 can lead to various civil or criminal consequences. Although the explanatory statement does not specify the exact penalties, breaches of the Customs Act can result in substantial fines and, in severe cases, imprisonment. The penalties are determined based on the nature and severity of the breach, with the potential for maximum penalties under the Act to include both monetary fines and custodial sentences. It is crucial for parties subject to the Act to adhere strictly to the provisions to avoid these adverse outcomes.