EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 10/2005
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 10/2005 was made on 16 June 2005. It revokes TCO 0307824 and makes TCO 0507193. The tariff classification has been changed from 7607.20.00 to 7607.19.00 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. 10/2005 revoked 0307824 and made new TCO 0507193 on 16 June 2005.
Overview
The Tariff Concessions Revocation Instrument 10/2005, made under the Customs Act 1901, was enacted to address the need for tariff classification adjustments in specific goods subject to Tariff Concession Orders (TCO). This legislative instrument, issued by the Chief Executive Officer of Customs, was necessitated by amendments to the Customs Tariff Act 1995 and the need for alignment with court decisions or Customs advice. The policy objective of this instrument was to ensure that the correct tariff classification applies to goods, thereby maintaining the integrity of the customs duty regime. The instrument revoked the existing TCO 0307824 and introduced a new TCO 0507193, reflecting the changed tariff classification from 7607.20.00 to 7607.19.00. The instrument came into effect on the same day it was made, 16 June 2005, and was designed to operate without requiring retrospective legislative amendments, consistent with the provisions of the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 10/2005 applies to the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO under Part XVA of the Customs Act 1901. This instrument pertains to the specific TCO 0307824, which was revoked, and the creation of a new TCO 0507193. The instrument affects entities and individuals who are subject to the tariff concessions specified in the revoked and new TCOs, particularly those involved in the importation of goods classified under the relevant tariff items. The geographic reach of this legislation is nationwide as it operates under the Commonwealth laws of Australia. The instrument was made in accordance with the Customs Act 1901, which has a national jurisdictional reach, and it operates within the framework established by the Customs Tariff Act 1995. The application of the Instrument is limited to changes in tariff classification and does not extend to other forms of tariff concessions or duties. The Instrument also stipulates that its provisions have effect despite certain prohibitions under the Legislative Instruments Act 2003, ensuring that the revocation and creation of TCOs can proceed in compliance with the Customs Act.
Key Provisions
The Tariff Concessions Revocation Instrument 10/2005 (the Instrument) under the Customs Act 1901 revokes Tariff Concession Order (TCO) 0307824 and establishes TCO 0507193, effective from the date of the revocation. Section 269SD(2) of the Customs Act 1901 mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if the tariff classification of the goods specified in the TCO has ceased to apply due to an amendment of the Customs Tariff Act 1995, a decision of a court, or written advice from a Customs officer. In this case, the tariff classification for the goods has been revised from 7607.20.00 to 7607.19.00. The Instrument was enacted on 16 June 2005.
The obligations imposed by the Customs Act 1901 on the parties governed by this Instrument are primarily centred around the requirements for making and revoking TCOs. The CEO must ensure that a TCO is made only if no substitutable goods are produced in Australia on the day the application is lodged, as per section 269C. Additionally, section 269P mandates that the CEO must revoke a TCO if the specified tariff classification no longer applies to the goods due to the factors outlined in section 269SD(2). The CEO must also make a new TCO with the updated tariff classification, as required by section 269SD(2).
The Act does not explicitly outline specific offences, penalties, or consequences for non-compliance with the provisions regarding the making or revoking of TCOs. However, the failure to adhere to the statutory requirements could potentially lead to disputes over customs duties and legal challenges. The Act’s overarching provisions concerning customs duties and tariff concessions may be subject to civil or administrative penalties for non-compliance. For instance, section 148 of the Customs Act 1901 provides for penalties for non-compliance with customs-related obligations, which could include fines and other administrative sanctions. Although the specific penalties for breach of the TCO provisions are not detailed in the Instrument, they would fall under the general enforcement mechanisms provided by the Act.