EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 103/2006
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 103/2006 was made on 22 November 2006. It revokes TCO 06134790 and makes TCO’s 0618602, 0618603 and 0618604. The tariff classification has been changed from 8515.39.00 to 8515.39.00, 8515.31.10 and 8515.31.90 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. 103/2006 revoked 06134790 and made new TCOs 0618602, 0618603 and 0618604 on 22 November 2006.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the administration of customs duties and other import charges, including the ability to grant tariff concessions for certain goods through Tariff Concession Orders (TCOs). The Act aims to streamline customs procedures and provide relief to importers by reducing customs duties on specified goods under certain conditions. In response to changes in tariff classifications, the Customs Act allows the Chief Executive Officer of Customs to revoke existing TCOs and issue new ones to reflect the current tariff schedule. The Tariff Concessions Revocation Instrument 103/2006 was introduced to address the need for updating tariff classifications, ensuring that the concessions remain aligned with the current customs tariff. This instrument, made on 22 November 2006, revoked TCO 06134790 and introduced new TCOs 0618602, 0618603, and 0618604 to reflect the updated tariff classification of the affected goods. The policy objective is to maintain the integrity and effectiveness of the tariff concession scheme by ensuring that the concessions are applied correctly in accordance with the prevailing tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 103/2006 is an instrument made under the Customs Act 1901, which pertains to the revocation and creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders apply to specific goods, granting them a lower rate of customs duty under certain conditions, primarily when no substitutable goods are produced in Australia. The Instrument revokes TCO 06134790 and replaces it with TCOs 0618602, 0618603, and 0618604, reflecting changes in tariff classifications. This change was necessary due to amendments in the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal, or written advice from a Customs officer, indicating that the previous tariff classification no longer applied to the goods. The instrument's provisions have effect from the day the previous tariff classification ceased to apply, and the new TCOs take effect from the day of revocation, which can be the same as the original TCO's commencement date or a later date, as specified in the Act. The Instrument was enacted on 22 November 2006, and no consultation was necessary due to the minor and machinery nature of the changes.
Key Provisions
The Tariff Concessions Revocation Instrument 103/2006, which came into effect on 22 November 2006, contains several operative sections under the Customs Act 1901. Specifically, section 269SD(2) mandates that the Chief Executive Officer (CEO) of Customs must revoke a Tariff Concession Order (TCO) if it is determined that the tariff classification stated in the TCO no longer applies to the goods due to an amendment of the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. Additionally, section 269SD(2) requires the CEO to make a new TCO for the affected goods. The Instrument revokes TCO 06134790 and issues new TCOs 0618602, 0618603, and 0618604, reflecting changes in tariff classifications from 8515.39.00 to 8515.31.10 and 8515.31.90.
The Customs Act 1901 imposes specific obligations on the CEO of Customs regarding the management of TCOs. These obligations include ensuring that the tariff classification stated in any TCO is accurate and applicable to the goods at all times. If the CEO determines that a TCO no longer accurately reflects the tariff classification due to one of the specified reasons, the CEO must promptly revoke the existing TCO and issue a new one that reflects the correct classification. This process ensures that the duty rates applied to imported goods are in line with the current tariff schedule, maintaining the integrity of the customs system.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 103/2006 may result in legal consequences. Specifically, incorrect or outdated TCOs could lead to incorrect customs duty assessments, potentially resulting in financial penalties or legal action. While the explanatory statement does not detail specific penalties, breaches of the Customs Act generally can attract both civil and criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The CEO’s adherence to these legislative requirements is crucial to avoid such repercussions and ensure the smooth operation of customs regulations.