EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 10/2006
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 10/2006 was made on 20 February 2006. It revokes TCO 0508491. The tariff classification has been changed from 8419.89.90 to 8479.20.00 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.10/2006 revokes 0508491 on 20 February 2006.
Overview
The Tariff Concessions Revocation Instrument No 10/2006, enacted on 20 February 2006, was introduced under the Customs Act 1901 to address a gap arising from changes in tariff classifications as per the Customs Tariff Act 1995, or decisions of the Administrative Appeals Tribunal, or written advice from Customs officers. This legislation, enacted by the Chief Executive Officer of Customs, ensures that tariff concessions remain accurate and effective by revoking outdated Tariff Concession Orders (TCOs) and issuing new ones. The instrument specifically revokes TCO 0508491, which underwent a change in tariff classification from 8419.89.90 to 8479.20.00 due to a tariff classification update. The revocation took effect from the day when the tariff classification change became applicable, aligning with the provisions under section 269SD of the Customs Act 1901, which ensures that the changes operate despite restrictions set by the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 10/2006, made under the Customs Act 1901, applies to the revocation of a Tariff Concession Order (TCO) that was previously established to provide a lower rate of customs duty on specific goods. The revocation of TCO 0508491, effective from 20 February 2006, is due to a change in tariff classification from 8419.89.90 to 8479.20.00, resulting from an amendment in the Customs Tariff Act 1995. The Act's provisions empower the Chief Executive Officer of Customs to make or revoke TCOs, contingent on the goods not being produced in Australia in the ordinary course of business. This instrument revokes the previous concession and mandates a new TCO with the updated tariff classification, ensuring compliance with the current tariff regime. The geographic reach of the Act and its revocation instrument is national, affecting all entities and industries subject to the Customs Act 1901. The instrument does not specify exclusions or exemptions but operates within the legislative framework of the Customs Act and relevant tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 10/2006 operates under sections 269C, 269P, and 269SD of the Customs Act 1901. This legislative instrument revokes Tariff Concession Order (TCO) 0508491 and introduces a new TCO in its place due to a change in tariff classification from 8419.89.90 to 8479.20.00. The revocation and new TCO take effect from the date the tariff classification change came into force.
The Customs Act 1901 imposes certain obligations on the Chief Executive Officer of Customs (CEO). Under section 269SD(2), the CEO must revoke a TCO if they are satisfied that the tariff classification stated in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. The CEO must also issue a new TCO for the goods with effect from the revocation. This ensures that the correct tariff classification is applied to the goods, maintaining the integrity of the customs duty scheme.
Failure to comply with the provisions of the Customs Act 1901 can result in civil or criminal penalties. Although the specific penalties are not detailed in the explanatory statement, breaches of customs laws can lead to substantial fines and potential imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any applicable sections within the Act.
The Instrument was made without consultation as the changes are considered minor and do not substantially alter existing arrangements. The revocation and new TCO are effective from the date of the tariff classification change, aligning with the requirements of section 269SD(2) of the Customs Act 1901. The legislative instrument also notes that section 269SD operates despite certain prohibitions in the Legislative Instruments Act 2003, ensuring the validity of the revocation and new TCO.