EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 104/2006
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, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 104/2006 was made on 22 November 2006. It revokes TCO 0613057 and makes TCO 0618415 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.104/2006 revoked 0613057 and made new TCO 0618415 on 22 November 2006.
Overview
The Tariff Concessions Revocation Instrument 104/2006, enacted in 2006, addresses a specific issue identified within the Customs Act 1901 concerning the revocation and correction of Tariff Concession Orders (TCOs) due to transcription errors. This legislative instrument was introduced by the Chief Executive Officer of Customs, as authorised by the Act. The primary objective of this instrument is to rectify errors in the description or tariff classification of goods listed in a TCO to ensure accurate application of customs duty rates. The instrument revokes an existing TCO (0613057) and issues a new TCO (0618415) to correct a transcription error, aligning with the statutory provision that allows for such amendments when errors are identified. This ensures that the correct goods are subject to the appropriate tariff concessions, maintaining the integrity and fairness of the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument 104/2006 applies to the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) which pertain to the reduction of customs duty rates for certain goods. The Act applies to the Chief Executive Officer of Customs who is responsible for making and revoking TCOs based on the criteria outlined in the Act, including the production of goods in Australia. The Instrument addresses a transcription error in the description of goods for which a TCO was previously made, namely TCO 0613057, and subsequently revokes it to correct the error with the issuance of a new TCO, TCO 0618415. The geographic and jurisdictional reach of this Act is national, as it pertains to the Commonwealth's customs regime. The revocation and creation of new TCOs are immediate upon the issuance of the Instrument on 22 November 2006, with the new TCO taking effect from the revocation of the old TCO. There are no exclusions or exemptions mentioned in the Instrument; however, the scope of application can be further extended or restricted through subordinate instruments under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 104/2006, which was made under the Customs Act 1901, primarily operates by revoking Tariff Concession Order (TCO) 0613057 and introducing a new TCO, 0618415 (section 269SD(2)). This action was taken due to a transcription error in the description of the goods and their tariff classification in the original TCO. By revoking the old TCO and issuing a new one, the instrument ensures that the correct tariff concessions are applied to the relevant goods.
The Customs Act 1901 imposes several obligations on the Chief Executive Officer of Customs (CEO) when administering TCOs. Under section 269C, the CEO must ensure that TCOs are made only if the application meets the core criteria, such as the absence of substitutable goods being produced in Australia. Additionally, section 269SD mandates that the CEO can revoke a TCO and issue a corrected one if a transcription error is identified in the description of the goods or their tariff classification. This process ensures that the application of customs duty is accurate and fair.
Failure to adhere to the provisions of the Customs Act 1901, particularly regarding the correct application and administration of TCOs, may result in civil or criminal consequences. Although specific offences and penalties are not detailed in the explanatory statement, breaches of customs legislation generally could lead to penalties. The severity of these penalties can vary, but they may include fines or other sanctions, depending on the nature and extent of the breach. It is important for parties involved to comply with the requirements to avoid potential legal repercussions.