EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 101/2007
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 101/2007 was made on 4 June 2007. It revokes TCO 0104746 and makes TCO 0708234. The tariff classification has been changed from 7222.30.00 to 7222.20.00 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. 101/2007 revoked 0104746 and made new TCO 0708234 on 4 June 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the administration of customs and excise duties, including the ability to issue and revoke Tariff Concession Orders (TCOs). These orders allow for a lower rate of customs duty on certain goods, provided that no substitutable goods are produced in Australia. The Tariff Concessions Revocation Instrument 101/2007, made on 4 June 2007, addresses the need to revoke and replace a TCO due to a change in tariff classification, ensuring that the correct duty rates are applied to the goods. This instrument revokes TCO 0104746 and introduces TCO 0708234, reflecting the updated tariff classification necessitated by changes in the Customs Tariff Act 1995. The policy objective is to maintain the integrity of the customs duty system by ensuring tariff classifications are accurate and consistently applied.
Scope and Application
The Tariff Concessions Revocation Instrument 101/2007 operates under the Customs Act 1901 and applies to the revocation of Tariff Concession Orders (TCOs) that provide lower rates of customs duty on specific goods. This legislative instrument applies to the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs in accordance with the Act. The instrument targets the alteration of tariff classifications of goods, which affects industries and entities involved in the importation of these goods, ensuring compliance with the updated tariff classifications. The instrument's jurisdictional reach is nationwide, as it pertains to the Commonwealth's customs regulations. The revocation of TCO 0104746 and the creation of TCO 0708234, effective from 4 June 2007, demonstrate how the Act adapts to changes in tariff classifications. The instrument does not specify exclusions or thresholds but operates within the framework provided by the Customs Act 1901, including its interaction with the Legislative Instruments Act 2003, which allows for certain retrospective legislative measures.
Key Provisions
The Tariff Concessions Revocation Instrument 101/2007 under the Customs Act 1901 primarily serves to revoke an existing Tariff Concession Order (TCO) and establish a new one. Specifically, section 269SD(2) of the Act mandates that the Chief Executive Officer of Customs (CEO) must revoke the TCO 0104746 and issue a new TCO 0708234 due to a change in tariff classification from 7222.30.00 to 7222.20.00, as per the Customs Tariff Act 1995. This change in classification takes effect from the day the original tariff classification no longer applies to the goods, as stipulated by section 269SD(2). The new TCO takes effect from the moment of the revocation, and section 269SD(4) allows this to be the same day as when the old TCO came into force or a later date.
The Act imposes several obligations on the parties involved. The CEO must ensure that the new TCO reflects the updated tariff classification, thereby maintaining compliance with the Customs Tariff Act 1995. Additionally, section 269SD(6) of the Customs Act 1901 specifies that the provisions of section 269SD apply notwithstanding section 12 of the Legislative Instruments Act 2003, which prohibits the creation of certain retrospective legislative instruments. This ensures that the revocation and creation of the new TCO can proceed without being hindered by the general prohibition on retrospective legislative instruments.
Failure to comply with the provisions of the Tariff Concessions Revocation Instrument 101/2007 could lead to legal consequences. Although specific offences, penalties, or consequences are not detailed in the explanatory statement, breaches of customs legislation generally result in civil or criminal penalties. Civil penalties can include fines, while criminal penalties may include imprisonment, depending on the severity and intent of the breach. The exact penalties are determined by the relevant sections of the Customs Act 1901 and other applicable laws, which may provide for maximum fines and imprisonment terms.