EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 100/2007
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(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 100/2007 was made on 2 May 2007. It revokes TCO 0618373 and makes TCO 0705896. The tariff classification has been changed from 8703.31.90 to 8703.31.20 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. 100/2007 revoked 0618373 and made new TCO 0705896 on 2 May 2007.
Overview
The Tariff Concessions Revocation Instrument 100/2007, enacted on 2 May 2007, operates under the Customs Act 1901 to address discrepancies in tariff classifications that arise from changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. This instrument empowers the Chief Executive Officer of Customs to revoke existing Tariff Concession Orders and issue new ones when the applicable tariff classification for specific goods changes. This legislative measure ensures that the tariff concessions accurately reflect the current tariff classifications, thereby maintaining the integrity and effectiveness of the customs duty scheme. The revocation and creation of new Tariff Concession Orders under this instrument are governed by the specific provisions in the Customs Act 1901, which allow for such actions without retrospective effect, as outlined in the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 100/2007 applies to the revocation and re-establishment of a Tariff Concession Order (TCO) as specified under the Customs Act 1901. This legislation primarily concerns the Chief Executive Officer of Customs (CEO) who has the authority to make and revoke TCOs, which are essentially orders that reduce the rate of customs duty on certain imported goods, provided they meet the core criteria. This includes the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application for the TCO was lodged. The geographic reach of this Act is national, as it pertains to the Customs Act 1901, which is a Commonwealth Act. The Act's application is limited to specific goods whose tariff classification has changed, necessitating a revocation and re-establishment of the TCO to reflect the new tariff classification. The revocation and re-establishment of TCOs are also subject to the conditions specified in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, and advice from officers of Customs. The commencement of the revocation and new TCO is effective from the day the tariff classification change took effect or a later date as specified in the Instrument.
Key Provisions
The Tariff Concessions Revocation Instrument 100/2007 primarily involves the revocation of Tariff Concession Order (TCO) 0618373 and the establishment of a new TCO, 0705896, under sections 269C and 269P of the Customs Act 1901 (the Act) (subsections 269C and 269P). The change in tariff classification from 8703.31.90 to 8703.31.20 was necessitated by a tariff classification amendment, as outlined in subsection 269SD(2) of the Act. This change means that the lower rate of customs duty applicable to the goods previously covered by TCO 0618373 will now be adjusted according to the new tariff classification in TCO 0705896. The revocation and new order both took effect on 2 May 2007.
The Act imposes certain obligations on the parties governed by it. Specifically, the Chief Executive Officer of Customs (CEO) is required to revoke an existing TCO if certain conditions are met, such as an amendment of the Customs Tariff Act 1995 or a decision of a court or advice from an officer of Customs indicating that the tariff classification in the TCO no longer applies to the goods (subsection 269SD(2)). The CEO must then issue a new TCO reflecting the correct tariff classification. This ensures that the tariff concessions accurately reflect the current tariff classifications and legal interpretations.
Failure to comply with the provisions of the Act can lead to various civil and criminal consequences. Under the Customs Act 1901, breaches involving the incorrect application of customs duties can result in penalties. For instance, knowingly or recklessly making a false statement in relation to the goods can lead to fines or imprisonment (section 269Y). The maximum penalties for such offences are specified in the relevant sections of the Customs Act 1901, which can include substantial fines and imprisonment terms depending on the severity of the breach. It is crucial for all parties to adhere to the requirements of the Act to avoid these consequences.