EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 102/2007
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 102/2007 was made on 4 June 2007. It revokes TCO 0508786 and makes TCO 0708235. 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. 102/2007 revoked 0508786 and made new TCO 0708235 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 and includes provisions for tariff concessions. The Tariff Concessions Revocation Instrument 102/2007, made under the authority of the Customs Act 1901, addresses the need to update and correct tariff classifications as they evolve, ensuring that the tariff concessions accurately reflect current tariff schedules. This instrument was introduced to address discrepancies that arise from changes in tariff classifications or court decisions impacting the classification of goods subject to tariff concessions. The instrument revokes an existing tariff concession order due to a change in tariff classification and establishes a new order, ensuring continued tariff concessions are applied correctly and in accordance with the current tariff schedule.
Scope and Application
The Tariff Concessions Revocation Instrument 102/2007 is an instrument made under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) within the scope of Part XVA. This instrument applies to the revocation of TCO 0508786 and the creation of TCO 0708235, which concern the tariff classification of certain goods. The primary application of this instrument is to the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs. The instrument affects entities and industries that import goods subject to the revised tariff classifications, thereby impacting their customs duty obligations. The geographic reach of this legislation is national, as it pertains to the federal customs laws of Australia. The instrument excludes any consultation process as the changes are considered minor or of a machinery nature, not substantially altering existing arrangements. The commencement of the revocation and the new TCO is governed by the date when the tariff classification ceased to apply to the goods, with the ability to backdate to the day the old TCO came into force or a later date, as specified under section 269SD of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 102/2007 under the Customs Act 1901 (section 269SD) is a legislative instrument that revokes an existing Tariff Concession Order (TCO) and establishes a new TCO in its place. Specifically, TCO 0508786 is revoked and replaced by TCO 0708235. This change was necessitated by an amendment in the tariff classification from 7222.30.00 to 7222.20.00. The revocation and creation of these TCOs are governed by the conditions outlined in the Customs Act 1901, ensuring that the revised tariff classification accurately reflects the current legislative framework.
The Act imposes several obligations on the Chief Executive Officer of Customs (CEO) when dealing with tariff concession orders. According to subsection 269SD(2), if the CEO is satisfied that a TCO's tariff classification is no longer applicable due to changes in the Customs Tariff Act 1995, court decisions, or written advice from a Customs officer, they must revoke the existing TCO and issue a new one. This ensures that the tariff rates applied to the goods are in line with the most current legal and regulatory standards. Additionally, subsection 269SD(4) specifies that the revocation and new TCO take effect from the day the previous tariff classification ceased to apply, or a later specified date, ensuring a smooth transition with minimal disruption.
Failure to comply with the provisions of the Customs Act 1901, including the timely revocation and issuance of TCOs, could lead to significant legal consequences. While the explanatory statement does not detail specific offences or penalties for non-compliance with the revocation process, breaches of the Customs Act generally can result in civil and criminal penalties. For instance, section 232 of the Act outlines the potential for penalties, including fines and imprisonment, for various violations, although the exact penalties would depend on the nature and severity of the breach. The instrument's retrospective effect, despite section 12 of the Legislative Instruments Act 2003, underscores the importance of adhering to these regulatory requirements to avoid legal repercussions.