EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 10/2008
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 10/2008 was made on
21 August 2007. This instrument revokes 0609734 of classification 8418.61.00 and makes new TCO 0700606 of classification 8418.69.00. 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 10/2008 revokes TCO 0609734 and makes new TCO 0700606 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 10/2008 was enacted in 2008 to address a specific issue arising from the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This instrument is a response to changes in the Customs Tariff Act 1995, which necessitated adjustments to the existing Tariff Concession Orders (TCOs) under the Customs Act 1901. The Tariff Concessions Revocation Instrument 10/2008 revokes a particular TCO and establishes a new one to reflect the updated tariff classifications, ensuring that the concessions remain aligned with the current tariff system. This was achieved without the need for extensive consultation, as the changes were deemed minor and primarily procedural, thereby not substantially altering the existing arrangements. The enacting body, the Chief Executive Officer of Customs, issued this instrument to maintain consistency and accuracy in the application of customs duties, in line with the overarching policy objectives of the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 10/2008 applies to goods specified under the Customs Act 1901, specifically affecting Tariff Concession Orders (TCOs) that have been altered due to changes in the Customs Tariff Act 1995. This Act facilitates the revocation of existing TCOs and the creation of new ones to ensure alignment with updated tariff classifications. The geographic reach of this legislation extends to the Commonwealth of Australia, applying uniformly across all states and territories. The revocation and creation of new TCOs are governed by the provisions of sections 269C, 269P, and 269SD(2A) of the Customs Act 1901, and are subject to the satisfaction of the Chief Executive Officer of Customs regarding tariff classification changes. The instrument revokes TCO 0609734 and replaces it with TCO 0700606, effective from 1 January 2007, following amendments made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. There were no consultations undertaken for this minor, machinery-related change.
Key Provisions
The Tariff Concessions Revocation Instrument 10/2008 under the Customs Act 1901 (section 269SD(2A)) operates to revoke an existing Tariff Concession Order (TCO) and replace it with a new one due to changes in the Customs Tariff Act 1995. Specifically, this instrument revokes TCO 0609734 of classification 8418.61.00 and replaces it with new TCO 0700606 of classification 8418.69.00. The changes were prompted by amendments in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The revocation and new concession orders have been effective from this date.
The obligations imposed by this Act on the parties or entities it governs primarily involve adherence to the new tariff classifications as specified in the new TCO 0700606. Importers, exporters, and other relevant stakeholders must ensure that their goods are correctly classified under the new tariff heading to benefit from the revised tariff rates. Additionally, any party involved in the importation or exportation of goods subject to the revoked TCO must update their records and documentation to reflect the changes in tariff classifications.
Failure to comply with the provisions of the Customs Act 1901, including the requirements set out in this instrument, may result in penalties. The specific penalties for non-compliance with customs regulations are outlined in other sections of the Customs Act and related instruments. The potential penalties can include fines, imprisonment, or both, depending on the severity and intent of the breach. The maximum penalties are determined by the specific offence and the discretion of the court. It is important for all parties to ensure they understand and comply with the new tariff classifications to avoid any potential legal consequences.