EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 103/2007
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 103/2007 was made on 4 June 2007. It revokes TCO 0304689 and makes TCO 0708236. 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. 103/2007 revoked 0304689 and made new TCO 0708236 on 4 June 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the regulation of customs and excise in Australia. Part XVA of the Act details the process for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders provide for lower rates of customs duty on certain goods, contingent upon specific criteria being met, such as the absence of substitutable goods being produced in Australia. The Tariff Concessions Revocation Instrument 103/2007, made on 4 June 2007, addresses the need to revoke and replace an existing TCO, TCO 0304689, with TCO 0708236 due to a change in tariff classification. This change was necessary to ensure the continued alignment of the tariff classification with the current Customs Tariff Act 1995. The revocation and creation of these new orders were made pursuant to the authority granted under the Customs Act, aiming to maintain the integrity of the tariff concession scheme in light of legislative amendments and other relevant factors.
Scope and Application
The Tariff Concessions Revocation Instrument 103/2007 pertains to the Customs Act 1901 and applies specifically to Tariff Concession Orders (TCOs) which are managed by the Chief Executive Officer of Customs. This legislation affects goods that benefit from a lower rate of customs duty as outlined in a TCO. The revocation of TCO 0304689 and the creation of TCO 0708236, as stipulated in this instrument, is due to a change in tariff classification, necessitating an adjustment in the applicable duty rates for specified goods. The instrument operates within the Commonwealth jurisdiction and extends to any entities or individuals importing goods affected by the TCOs. There is no mention of specific exclusions or thresholds within the text, but the application of the TCOs inherently excludes goods that are not subject to the specified tariff concessions. The revocation and creation of TCOs under this instrument are governed by the provisions of the Customs Act 1901 and take effect from the date the tariff classification change came into force.
Key Provisions
The main provisions of Tariff Concessions Revocation Instrument 103/2007 under the Customs Act 1901 revolve around the revocation of Tariff Concession Order (TCO) 0304689 and the establishment of new TCO 0708236. This instrument was made on 4 June 2007 to address a change in tariff classification due to an amendment in the Customs Tariff Act 1995. Specifically, section 269SD(2) of the Act mandates the revocation of the old TCO and the creation of a new one once the tariff classification no longer applies to the goods in question. This change is a direct response to the shift in classification from 7222.30.00 to 7222.20.00.
Entities and individuals governed by this Act are required to adhere to the new tariff classification as outlined in the newly established TCO 0708236. This entails ensuring that the goods subject to the TCO are correctly classified under the updated tariff code, which may affect the customs duty rates applicable. Compliance with the new TCO is crucial to avoid any potential legal ramifications or financial penalties associated with incorrect classification.
In terms of consequences, while the explanatory statement does not explicitly detail offences or penalties for non-compliance with the new TCO, breaches of the Customs Act 1901 can generally lead to severe civil and criminal penalties. Under section 262 of the Act, individuals or entities found guilty of an offence can face fines of up to $22,200 for individuals and $111,000 for bodies corporate, along with potential imprisonment terms. Additionally, incorrect tariff classification can result in financial liabilities for any underpaid duties and interest, as well as potential administrative actions by the Australian Border Force.