EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 103/2011
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(1A) of the Act provides that the CEO may revoke a TCO if he or she is satisfied on any day that a TCO is no longer required because, in the 2 years preceding that day, the TCO has not been quoted in an import entry to secure a concessional rate of duty.
Instrument
Tariff Concessions Revocation Instrument No. 103/2011 was made on 29 July 2011. It revokes TCO 0510722 as the CEO is satisfied that the TCO has not been used in the preceding 2 years.
Consultation
No consultation was undertaken. Since the TCO has not been used in the preceding 2 years, the revocation of the TCO will not have an effect on business.
Commencement
Subsection 269SD(1A) provides that the order revoking the TCO has effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding 2 years.
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. 103/2011 revoked TCO 0510722 on 27 July 2011.
Overview
The Tariff Concessions Revocation Instrument No. 103/2011, enacted on 29 July 2011, revokes Tariff Concession Order (TCO) 0510722 under the Customs Act 1901. This instrument was introduced to address the need to streamline and manage tariff concessions effectively by ensuring that TCOs are revoked if they have not been utilised in securing duty concessions for a period of two years. The Customs Act 1901, enacted by the Australian Parliament, provides the legal framework for the administration of customs and excise duties, and the ability for the Chief Executive Officer of Customs to make and revoke TCOs is an essential part of this scheme. The policy objective of this revocation is to maintain the efficiency and relevance of the tariff concession system by eliminating unused concessions, thereby ensuring that the system remains responsive to current trade practices and economic conditions.
Scope and Application
The Tariff Concessions Revocation Instrument No. 103/2011 pertains to the Customs Act 1901 and specifically addresses the revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). The primary focus of this instrument is to revoke TCO 0510722, as the CEO has determined that the TCO has not been utilised in any import entries for the two years preceding 27 July 2011. This revocation is in accordance with the provisions of section 269SD(1A) of the Customs Act 1901, which allows for the revocation of a TCO when it has not been quoted in an import entry to secure a concessional rate of duty within the specified timeframe. The revocation instrument is effective from the date the CEO became satisfied that the TCO had not been used, which was 27 July 2011. This revocation does not require consultation with stakeholders, as it is based on the inactivity of the TCO over the past two years and does not affect ongoing business operations.
Key Provisions
The Tariff Concessions Revocation Instrument No. 103/2011 operates under the Customs Act 1901, specifically within the framework established by sections 269C, 269P, and 269SD. The main provisions of this instrument involve the revocation of Tariff Concession Order (TCO) 0510722, which was initiated by the Chief Executive Officer of Customs (CEO) due to the order not being quoted in any import entry to secure a concessional rate of duty over the preceding two years. This revocation is effective from the day the CEO became satisfied that the TCO had not been utilised, as outlined in subsection 269SD(1A) of the Act.
In accordance with the requirements set forth by the Customs Act, the CEO's decision to revoke TCO 0510722 is predicated on the condition that the TCO has not been used to secure a concessional rate of duty for a continuous period of two years. The CEO's satisfaction with this criterion triggers the revocation process, which is detailed in subsection 269SD(1A) of the Act. The CEO’s decision is also noted to be effective from the moment this satisfaction is reached, and it is further clarified that this process operates despite any restrictions imposed by section 12 of the Legislative Instruments Act 2003, as stipulated in subsection 269SD(6) of the Customs Act.
The obligations imposed by the Tariff Concessions Revocation Instrument No. 103/2011 primarily concern the CEO of Customs, who must ensure that any TCO not quoted for two consecutive years is duly revoked. This requirement ensures that the concessions are effectively managed and only applied to those goods for which there is actual ongoing benefit. The CEO’s role is to monitor the use of TCOs and take action when they are no longer in use, thereby maintaining the integrity and efficiency of the tariff concession scheme.
Regarding consequences for breach, the Customs Act does not specify particular offences, penalties, or civil/criminal consequences directly related to the revocation of a TCO. However, the failure to comply with the conditions set forth by the Act could potentially result in the misuse of tariff concessions, leading to an unfair advantage or revenue loss for the government. Although specific penalties are not mentioned in this context, the broader legal framework of the Customs Act includes provisions for penalties associated with customs-related offences, which could apply if there were attempts to circumvent the revocation of a TCO.