EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 10/2007
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 10/2007 was made on
2 January 2007. This instrument revokes 0617405 of classification 8421.91.90 and makes new TCO 0614807 of classification 8421.91.00. 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 10/2007 revokes TCO 0617405 and makes new TCO’s 0614807 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 10/2007, enacted in 2007, is a piece of legislation that amends the Customs Act 1901 to address the need for updating tariff classifications following changes in the Customs Tariff Act 1995. The instrument was developed to respond to amendments introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which necessitated adjustments in the tariff concessions applied to specific goods. The instrument was created under the authority of the Customs Act 1901 and was implemented to ensure that the tariff classifications continue to accurately reflect the updated customs tariff schedule, thus maintaining the integrity of the tariff concession scheme. The instrument revokes the previous tariff concession order and establishes new orders to align with the revised tariff classifications, effective from 1 January 2007.
Scope and Application
The Tariff Concessions Revocation Instrument 10/2007, made under the Customs Act 1901, is a regulatory instrument that addresses the revocation of a Tariff Concession Order (TCO) and the issuance of a new TCO, reflecting amendments to the Customs Tariff Act 1995. Specifically, this instrument revokes TCO 0617405 of classification 8421.91.90 and replaces it with TCO 0614807 of classification 8421.91.00, effective from 1 January 2007. The instrument operates under the authority granted by sections 269C, 269P, and 269SD(2A) of the Customs Act, which allow the Chief Executive Officer of Customs to adjust tariff concessions in response to tariff changes. The revocation and creation of these TCOs are triggered by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, and they pertain to the classification and customs duty applicable to certain goods. No consultation was deemed necessary as the changes are considered minor and do not significantly alter existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 10/2007 (the Instrument) operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) (s 269C, s 269P, s 269SD(2A)). The Instrument revokes TCO 0617405 and replaces it with a new TCO 0614807. This change was necessitated by amendments in the Customs Tariff Act 1995, as reflected in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The revocation and creation of new TCOs have effect from the same date, ensuring a seamless transition in tariff classifications.
Under the Customs Act 1901, the Chief Executive Officer of Customs (the CEO) is tasked with the responsibility of making and revoking TCOs. This authority is exercised in compliance with the criteria outlined in the Act, particularly when no substitutable goods are produced in Australia in the ordinary course of business on the day the application for a TCO is lodged (s 269C, s 269P). The CEO must revoke a TCO and issue a new one if the tariff classification for the goods changes due to amendments in the Customs Tariff Act 1995 (s 269SD(2A)). This process ensures that the customs duties applied to specific goods remain accurate and relevant to their current tariff classification.
The Instrument imposes several obligations on the parties and entities it governs. The CEO of Customs must ensure that TCOs accurately reflect the current tariff classifications as per the Customs Tariff Act 1995. When amendments occur, the CEO is obligated to revoke the existing TCO and issue a new one that aligns with the updated classifications. Importers and exporters must stay informed about these changes to ensure compliance with the applicable customs duties and tariff classifications. Additionally, they need to adjust their import and export declarations accordingly to reflect the correct tariff codes.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 10/2007 can result in civil and criminal consequences. Under the Act, incorrect declarations or non-compliance can lead to fines and other penalties. Specifically, section 252 of the Customs Act 1901 provides for penalties for providing false or misleading information, which can result in substantial fines. Additionally, section 264 imposes penalties for failing to comply with the Act, which can lead to fines and, in severe cases, imprisonment. The exact penalties depend on the severity of the breach and the discretion of the court.