EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 9/2005
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 9/2005 was made on 18 May 2005 It revokes TCO 0404453 and makes TCO 0505626 The tariff classification has been changed from 6303 92 90 to 6307 90 40 because of a 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.9/2005 revoked 0404453 and made new TCO 0505626 on 18 May 2005.
Overview
The Tariff Concessions Revocation Instrument 9/2005, enacted on 18 May 2005, amends the Customs Act 1901 to address the issue of tariff classification discrepancies that can arise due to amendments in the Customs Tariff Act 1995, court decisions, or administrative advice. This instrument was introduced to ensure that the tariff concessions provided under Tariff Concession Orders (TCOs) accurately reflect the current tariff classification of the goods involved, thereby maintaining the integrity of the tariff concession scheme. The instrument was made by the Chief Executive Officer of Customs under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. The revocation and creation of new TCOs were executed to comply with the policy objective of adjusting tariff classifications as necessitated by changes in the law or administrative interpretations. The instrument took effect from the date when the previous tariff classification ceased to apply to the goods, ensuring that the new TCOs are in line with the current tariff structure.
Scope and Application
The Tariff Concessions Revocation Instrument 9/2005 under the Customs Act 1901 applies to the revocation and subsequent creation of Tariff Concession Orders (TCOs) for specific goods affected by changes in tariff classification. This instrument was enacted to ensure that the tariff concessions continue to apply to goods as per their updated classifications, thereby maintaining consistency and compliance with the current tariff schedule. The instrument applies to the goods specified in the revoked TCO 0404453 and the newly created TCO 0505626, which have had their tariff classification adjusted due to changes in the Customs Tariff Act 1995. The geographic reach of this Act is national, as it operates under the Commonwealth framework established by the Customs Act. The Act does not specify any exclusions or exemptions, and the application is directly tied to the specified goods and their classification changes. The instrument also incorporates provisions that allow for its retrospective effect, ensuring that the changes in tariff classification and the consequent revocation and creation of TCOs are effective from the day the tariff classification change took place.
Key Provisions
The Tariff Concessions Revocation Instrument 9/2005, under the Customs Act 1901, serves to revoke a previously issued Tariff Concession Order (TCO) and issue a new one. Specifically, section 269SD(2) requires the Chief Executive Officer of Customs (CEO) to revoke TCO 0404453 and issue a new TCO 0505626 due to a change in tariff classification. This change was necessitated by an amendment to the Customs Tariff Act 1995, which altered the classification from 6303 92 90 to 6307 90 40. The instrument came into effect on 18 May 2005, the date of its making.
The Tariff Concessions Revocation Instrument imposes certain obligations on the parties governed by the Customs Act 1901. Primarily, it obliges the CEO to ensure that the tariff classification stated in any TCO accurately reflects the current tariff regime as per the Customs Tariff Act 1995. If a discrepancy arises, the CEO must revoke the existing TCO and issue a new one with the correct tariff classification. Additionally, the CEO must adhere to the provisions of section 269SD, ensuring the revocation and re-issuance of TCOs are conducted in accordance with the statutory requirements.
Failure to comply with the provisions of the Customs Act 1901, including the obligations outlined in the Tariff Concessions Revocation Instrument 9/2005, may result in civil or criminal penalties. While the explanatory statement does not detail specific penalties for non-compliance with the instrument itself, breaches of the broader Customs Act 1901 can lead to significant consequences. For example, individuals or entities may face fines and imprisonment, with the exact penalties depending on the nature and severity of the breach. The Act provides for fines up to a substantial amount and imprisonment for terms that can extend up to several years, reflecting the seriousness of non-compliance with customs regulations.