EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 100/2006
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.
Crown Equipment Pty Ltd requested that the CEO revoke TCO 0208347 which covers internal combustion piston engine forklift trucks.
Instrument
Tariff Concessions Revocation Instrument No 100/2006 was made on 11 November 2006. It revokes TCO 0208347 as the CEO is satisfied that Crown Equipment 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 Concessions Revocation Instrument No.100/2006 revoked 0208347 on 11 November 2006.
Overview
The Tariff Concessions Revocation Instrument No 100/2006 was enacted on 11 November 2006 under the Customs Act 1901. This legislation addresses the problem of revoking tariff concession orders when local production of substitutable goods has commenced in Australia, thereby rendering the concessions potentially unnecessary. The Instrument revokes Tariff Concession Order 0208347, which covered internal combustion piston engine forklift trucks, following a request from Crown Equipment Pty Ltd. The Chief Executive Officer of Customs (CEO) revoked the concession after being satisfied that Crown Equipment Pty Ltd was a producer in Australia of substitutable goods and that the CEO would not have made the concession had the request for revocation been made on the day the original concession was applied for. This revocation was carried out in accordance with the requirements of the Customs Act 1901, which mandates the CEO to make an order revoking the TCO if certain conditions are met. The CEO must also publish a notice of the revocation request in a Gazette, as stipulated by the Act.
Scope and Application
The Tariff Concessions Revocation Instrument 100/2006, made under the Customs Act 1901, applies to the revocation of a Tariff Concession Order (TCO) specifically concerning internal combustion piston engine forklift trucks. The Act governs the imposition and revocation of TCOs, which provide for lower rates of customs duty on goods that meet certain criteria, primarily when no substitutable goods are produced in Australia. This Instrument was enacted in response to a request by Crown Equipment Pty Ltd to revoke TCO 0208347, asserting that it is a producer of substitutable goods in Australia, and thereby satisfying the conditions under sections 269SC(1) and 269SC(3) of the Act. The revocation is effective from the date the request was lodged, in accordance with the provisions of the Customs Act 1901, and the CEO’s satisfaction that the TCO would not have been issued if the request had been made on the original application date. This revocation demonstrates the dynamic nature of the TCO scheme, which is designed to adapt to changes in the domestic production capacity and competitiveness of Australian industries.
Key Provisions
The Tariff Concessions Revocation Instrument 100/2006 operates under the Customs Act 1901 to address specific provisions regarding the revocation of Tariff Concession Orders (TCOs). Under section 269C, a TCO can be made when no substitutable goods are produced in Australia on the day the application is lodged. Section 269P further delineates the criteria for the creation of these orders. The Act mandates, under section 269SB, that a producer of substitutable goods in Australia can request the Chief Executive Officer (CEO) of Customs to revoke an existing TCO. Sections 269SC(1) and 269SC(3) outline the conditions that must be met for the CEO to revoke a TCO, including the producer's status and the CEO's hypothetical decision-making process had the TCO not been in force on the day of the request.
The obligations imposed by the Act on the parties involved, specifically Crown Equipment Pty Ltd and the CEO, are quite clear. Crown Equipment Pty Ltd, as a producer of substitutable goods, must formally request the revocation of the TCO by providing sufficient evidence to satisfy the CEO under sections 269SC(1) and 269SC(3). The CEO, on the other hand, has the duty to thoroughly evaluate the request, determine whether the conditions for revocation are met, and subsequently make an order revoking the TCO if satisfied. Additionally, under section 269SC(1A), the CEO is obligated to publish a notice in the Gazette detailing the request and the particulars of the TCO in question as soon as practicable after receiving the revocation request.
The Act does not explicitly outline specific offences or penalties for breaches related to the revocation of TCOs. However, any failure by Crown Equipment Pty Ltd to meet the criteria for revocation or the CEO's failure to follow the mandated procedures could result in legal challenges or other consequences under the general administrative law principles. The revocation order itself, once made, comes into force on the day the revocation request was lodged, as stipulated by section 269SC(6), ensuring that the process is efficient and timely. The legislative framework is designed to balance the interests of domestic producers with those who benefit from tariff concessions, ensuring that the revocation process is both fair and legally sound.