EXPLANATORY STATEMENT
Tariff Concession Revocation Instrument 1/2006
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
The Lincoln Electric Co Pty Ltd requested that the CEO revoke TCO 0511456 which covers Welding Wire.
Instrument
Tariff Concession Revocation Instrument No 1/2006 was made on 10 January 2006. It revokes TCO 0511456 as the CEO is satisfied that The Lincoln Electric Co Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Revocation Instrument No.1/2006 revoked 0511456 on 10 January 2006.
Overview
The Tariff Concession Revocation Instrument 1/2006 is an instrument made under the Customs Act 1901 to address the specific issue of revoking tariff concession orders when it is determined that substitutable goods are now being produced in Australia. Enacted by the Commonwealth of Australia, the objective of this instrument is to ensure that tariff concessions are only applied when there is a genuine need, and to maintain fair trading conditions by preventing the unnecessary application of lower customs duties. The revocation of Tariff Concession Order 0511456 for Welding Wire, as requested by The Lincoln Electric Co Pty Ltd, reflects the process whereby the Chief Executive Officer of Customs must determine if the conditions for a tariff concession no longer apply, specifically if there are now Australian-produced substitutable goods. This revocation came into effect on the day the request was lodged, demonstrating adherence to the statutory requirements for prompt action on such requests.
Scope and Application
The Tariff Concession Revocation Instrument 1/2006, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Orders (TCOs) that provide reduced customs duty rates on certain imported goods. Specifically, it applies to the revocation of TCO 0511456, which covered Welding Wire, following a request by The Lincoln Electric Co Pty Ltd. The revocation is based on the Chief Executive Officer of Customs being satisfied that The Lincoln Electric Co Pty Ltd is a producer in Australia of substitutable goods, and that if the TCO had not been in force, the CEO would not have made the TCO. The instrument revokes the TCO with effect from the day the revocation request was lodged, despite the prohibition of retrospective legislative instruments under the Legislative Instruments Act 2003. The process includes mandatory publication of the request and particulars of the TCO in a Gazette as soon as practicable after the request is received. This revocation applies nationally and affects all entities involved in the importation of the specified goods.
Key Provisions
The Tariff Concession Revocation Instrument 1/2006 revokes Tariff Concession Order (TCO) 0511456, which covers Welding Wire, following a request by The Lincoln Electric Co Pty Ltd. According to section 269SB of the Customs Act 1901, the Chief Executive Officer of Customs (CEO) must make an order to revoke a TCO if certain conditions are met. Specifically, the CEO must be satisfied that the requesting party is a producer of substitutable goods in Australia (subsection 269SC(1)) and that the CEO would not have made the TCO if the request for revocation had been made on the day the TCO application was initially lodged (subsection 269SC(3)). In this instance, the CEO is satisfied that The Lincoln Electric Co Pty Ltd meets these criteria, leading to the revocation of TCO 0511456.
The obligations imposed by the Customs Act 1901 on the parties involved include the requirement for the CEO to carefully assess the request for revocation and the circumstances surrounding the original TCO application. The CEO must ensure that the person requesting the revocation is indeed a producer of substitutable goods in Australia. Additionally, the CEO must consider whether the TCO would have been made if the request for revocation had been made on the day the original TCO application was lodged. This involves a retrospective assessment to determine if the conditions for the TCO were met at that time. Furthermore, the CEO must publish a notice in a Gazette as soon as practicable after receiving a revocation request, including the details of the TCO and the request (subsection 269SC(1A)).
The Act outlines specific consequences for non-compliance with its provisions. While the Act does not explicitly state offences or penalties related to the revocation process, it is implied that any misuse of the revocation mechanism or failure to comply with the statutory obligations could result in legal consequences. The revocation of a TCO is effective from the date the revocation request was made, not the date of the revocation order, as per subsection 269SC(6). This ensures that the revocation does not have retrospective effect, except as provided by the Act. The revocation order itself is made under the authority of the Customs Act 1901 and is subject to the general legal framework governing legislative instruments in Australia.