EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 102/2006
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.
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 102/2006 was made on 9 November 2006. It revokes TCO 0606882 and makes TCO 0618373. The tariff classification has been changed from 8703.21.00 to 8703.31.90.
Consultation
No consultation was undertaken since the change is of a 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. 102/2006 revoked TCO 0606882 and made new TCO 0618373 on 9 November 2006.
Overview
The Tariff Concessions Revocation Instrument 102/2006, enacted under the Customs Act 1901, addresses the need to revoke and replace a Tariff Concession Order (TCO) when the tariff classification of certain goods changes due to amendments in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The Act allows for the revocation of a TCO and the issuance of a new one to ensure that the correct tariff classification is applied to goods, thereby maintaining the integrity of the tariff concession scheme. This instrument was created to streamline the process of adjusting tariff concessions in response to changes that affect the classification of goods, ensuring that the duty rates applied are accurate and up to date. The instrument was enacted by the Chief Executive Officer of Customs and took effect on the day the tariff classification ceased to apply to the goods, aligning with the policy objective of maintaining precise and current tariff classifications for imported goods.
Scope and Application
The Tariff Concessions Revocation Instrument 102/2006, made under the Customs Act 1901, is a legislative instrument that addresses the revocation and amendment of Tariff Concession Orders (TCOs) concerning customs duty rates on specific goods. This instrument applies to entities and individuals who are subject to the Customs Act and specifically to those entities whose goods are affected by the tariff concessions in question. The instrument pertains to the geographic reach of Australia, applying nationally as it operates within the framework of federal legislation. The instrument revokes TCO 0606882 and issues a new TCO 0618373, altering the tariff classification of the goods from 8703.21.00 to 8703.31.90. The changes are triggered by the cessation of applicability of the previous tariff classification due to an amendment in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. The instrument comes into effect from the day the previous tariff classification ceased to apply to the goods, as stipulated by the Customs Act. No consultation was necessary as the changes are considered minor and do not significantly alter existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 102/2006 (Instrument) under the Customs Act 1901 operates primarily through section 269SD(2), which mandates the revocation of Tariff Concession Orders (TCOs) when certain conditions are met. Specifically, if the Chief Executive Officer of Customs (CEO) determines that a tariff classification mentioned in a TCO has ceased to apply to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. This was the case with TCO 0606882, which was revoked and replaced by TCO 0618373 on 9 November 2006.
The Act imposes several obligations on the CEO, primarily to ensure that TCOs accurately reflect the tariff classification of goods. The CEO must carefully monitor changes in the Customs Tariff Act, court decisions, and advice from Customs officers to determine if a TCO needs to be revoked or amended. This process ensures that the tariff concessions remain valid and applicable only when the conditions for their issuance are still met. Additionally, the CEO must ensure that the new TCO accurately reflects the current tariff classification and is issued promptly to maintain compliance with customs regulations.
Failure to adhere to the provisions of the Customs Act 1901 and the requirements set out in the Tariff Concessions Revocation Instrument 102/2006 can result in significant consequences. If the CEO fails to revoke a TCO when the tariff classification changes, it could lead to incorrect duty rates being applied, which might result in financial penalties or legal challenges from affected parties. While the explanatory statement does not specify detailed penalties, breaches of the Customs Act generally can lead to fines and other enforcement actions under sections such as 269E and 269H, which pertain to penalties for false statements and non-compliance with customs laws.
The Instrument also addresses the timing of its effects, clarifying that the revocation of the old TCO and the issuance of the new TCO take effect from the date the original tariff classification ceased to apply. This is explicitly stated in subsection 269SD(2) and 269SD(4), which ensure that the changes are effective from the relevant date, even if it is after the original TCO came into force. This provision helps to maintain clarity and continuity in the application of tariff concessions, ensuring that any changes are implemented without causing confusion or delays in customs processes.