EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 09/2007
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 09/2007 was made on
2 January 2007. This instrument revokes 0614738 of classification 8708.94.59 and makes new TCO’s 0614805 of classification 8708.94.52 and 0614802 of classification 8708.94.59. 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 09/2007 revokes TCO 0614738 and makes new TCO’s 0614805 and 0614802 in its place, with effect from 1 January 2007.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, establishes a framework for the imposition and remission of customs duties, including provisions for Tariff Concession Orders (TCOs). These orders apply reduced customs duties to specific goods under certain conditions, primarily when those goods are not domestically produced. The Tariff Concessions Revocation Instrument 09/2007, issued on 2 January 2007, addresses the need to update and revoke certain TCOs to reflect amendments to the Customs Tariff Act 1995. Specifically, this instrument revokes the TCO 0614738 and introduces new TCOs 0614805 and 0614802 to align with changes in tariff classifications effective from 1 January 2007. The instrument was enacted without consultation, as the changes were considered minor and of a machinery nature, not significantly altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 09/2007 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) related to customs duty on imported goods. This instrument is applicable to entities and individuals involved in the importation of goods that are affected by changes in tariff classifications as a result of amendments to the Customs Tariff Act 1995. The scope of this Act extends to ensuring that the correct tariff classification applies to goods entering Australia, impacting the duty paid on these goods. The instrument is effective across the Commonwealth, encompassing all states and territories of Australia. The instrument revokes existing TCO 0614738 and replaces it with new TCOs 0614805 and 0614802, reflecting changes in tariff classifications that took effect from 1 January 2007. The instrument is made pursuant to subsection 269SD(2A) of the Customs Act 1901, which mandates the revocation of TCOs when their stated tariff classifications no longer apply due to amendments in the Customs Tariff Act 1995.
Key Provisions
The Tariff Concessions Revocation Instrument 09/2007 under the Customs Act 1901 (section 269SD(2A)) revokes a particular Tariff Concession Order (TCO) and establishes new TCOs. Specifically, it revokes TCO 0614738 of classification 8708.94.59 and replaces it with new TCOs 0614805 of classification 8708.94.52 and 0614802 of classification 8708.94.59. This change was made in response to amendments to the Customs Tariff Act 1995, which came into effect from 1 January 2007. These changes reflect updates to the Harmonized System, as outlined in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
Entities and individuals affected by these TCOs must adhere to the new classifications effective from 1 January 2007. The revocation and creation of these TCOs mean that the applicable tariff classifications for the specified goods have changed. Importers, exporters, and customs brokers must ensure that their records and declarations are updated to reflect these new classifications. This includes reviewing and amending any existing customs documentation to accurately reflect the new tariff codes and any associated duty rates.
Failure to comply with the new TCOs may result in penalties under the Customs Act 1901. Specifically, incorrect classification of goods can lead to financial penalties and potential legal action. The penalties for incorrect classification can include fines, as well as the payment of any additional customs duty or other charges that become applicable due to the misclassification. In severe cases, persistent non-compliance may lead to more stringent enforcement actions by the Australian Customs and Border Protection Service.
The Tariff Concessions Revocation Instrument 09/2007 also imposes a duty on the Chief Executive Officer of Customs to ensure that the new TCOs are properly communicated and implemented. This includes publishing the changes in an accessible manner and providing any necessary guidance to assist affected parties in understanding and complying with the new regulations. The CEO must also ensure that any disputes or challenges regarding the new TCOs are addressed promptly and fairly.