EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 8/2006
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 Revocation Instrument No 8/2006 was made on 16 February 2006. It revokes TCO 0516611 and makes TCO 0603928. The tariff classification has been changed from 8301.40.00 to 8536.50.99 because tariff classification change.
Consultation
No consultation was undertaken since the change is minor or 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 Concessions Revocation Instrument No. 8/2006 revoked 0516611 and made new TCO 0603928 on 16 February 2006.
Overview
The Tariff Concessions Revocation Instrument 8/2006, enacted on 16 February 2006, addresses the need for tariff concession adjustments as outlined in the Customs Act 1901. This instrument was established by the Chief Executive Officer of Customs (CEO) to manage changes in tariff classifications that affect the application of Tariff Concession Orders (TCO). Specifically, it revokes TCO 0516611 and introduces TCO 0603928, reflecting a change in tariff classification from 8301.40.00 to 8536.50.99 due to alterations in the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal. The policy objective is to ensure that customs duties are applied correctly and fairly, reflecting the most current tariff classifications. The instrument was enacted by the CEO without consultation as the changes were deemed minor and of a machinery nature, not substantially altering existing arrangements. The commencement of the instrument aligns with the day the tariff classification change took effect.
Scope and Application
The Tariff Concessions Revocation Instrument No. 8/2006 applies to the revocation of Tariff Concession Order (TCO) 0516611 and the introduction of new TCO 0603928 under the Customs Act 1901. It targets the goods subject to the tariff concession that are imported into Australia, ensuring that the applicable customs duty rates are correctly aligned with current tariff classifications. This instrument is issued by the Chief Executive Officer of Customs, who has the authority to make and revoke TCOs in accordance with the core criteria specified in sections 269C and 269P of the Act. The revocation and establishment of new TCOs occur due to changes in tariff classifications, as mandated by subsection 269SD(2) of the Act. The geographic reach of this instrument is national, applying across all states and territories of Australia. There are no stated exclusions or exemptions within the scope of this instrument; however, it is limited to the specific goods affected by the change in tariff classification. The instrument does not extend or restrict application through subordinate instruments but rather operates under the authority conferred by the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 8/2006, under the Customs Act 1901, primarily addresses the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO (sections 269C, 269P, and 269SD). Specifically, the Instrument revokes TCO 0516611 and introduces TCO 0603928. This change was necessary due to an amendment in the tariff classification of certain goods, shifting from 8301.40.00 to 8536.50.99. The operative sections of the Instrument (section 269SD(2)) mandate that if the Chief Executive Officer (CEO) of Customs is satisfied that a TCO's tariff classification no longer applies, they must revoke the existing TCO and issue a new one with updated classifications.
The Instrument imposes certain obligations on the CEO and potentially on other parties governed by the Customs Act. The CEO must ensure that the conditions for making and revoking TCOs are met, such as verifying that no substitutable goods are produced in Australia at the time of the application. This entails a thorough review of the tariff classifications and compliance with decisions of the Administrative Appeals Tribunal and advice from Customs officers. The CEO must also adhere to the provisions of the Customs Tariff Act 1995 and ensure that the new TCO reflects the correct tariff classification as of the effective date of the revocation.
Failure to comply with the requirements of the Customs Act and the Tariff Concessions Revocation Instrument could lead to various consequences. The Act includes provisions for both civil and criminal penalties for breaches. For instance, under section 269U, any person who makes a false or misleading statement in an application for a TCO may be subject to penalties. Civil penalties may include fines, and in more severe cases, criminal penalties could be imposed, such as imprisonment. The exact penalties are not specified in the Instrument but would be determined according to the relevant sections of the Customs Act and other applicable legislation. The revocation and creation of TCOs are crucial to maintaining the integrity of the customs duty system and ensuring that appropriate tariff rates are applied to imported goods.