EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 107/2006
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 107/2006 was made on 24 November 2006. It revokes TCO 0602557 and makes TCO 0618924. The tariff classification has been changed from 8479.89.90 to 9305.91.00 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. 107/2006 revoked 0602557 and made new TCO 0618924 on 24 November 2006.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework under which Tariff Concession Orders (TCOs) can be made and revoked by the Chief Executive Officer of Customs. This legislation addresses the issue of applying lower rates of customs duty to specific goods, contingent on the absence of substitutable goods produced in Australia. The Tariff Concessions Revocation Instrument 107/2006, made on 24 November 2006, revokes TCO 0602557 and introduces TCO 0618924 due to a change in tariff classification. This change was necessitated by an amendment in the Customs Tariff Act 1995, ensuring the tariff classification applies correctly to the goods in question. The instrument was made without consultation as the changes were deemed minor and of a machinery nature. The revocation and new order took effect from the day the tariff classification ceased to apply to the goods, with the new TCO effective from the revocation date, in accordance with the provisions of the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 107/2006 operates under the authority of the Customs Act 1901, specifically addressing the revocation and reissuance of Tariff Concession Orders (TCOs) which govern the application of customs duty rates to certain goods. The Act applies to entities and individuals involved in the import of goods affected by the TCOs, focusing on the classification and duty rates of these goods. This Instrument revokes TCO 0602557 and issues a new TCO, 0618924, following a change in tariff classification necessitated by an amendment in the Customs Tariff Act 1995. The scope of the Instrument is limited to the goods specified in the revoked and new TCOs, ensuring that the correct customs duty rates are applied in accordance with the current tariff classification. The geographic reach of this Act is national, as it pertains to the Commonwealth's customs regime and the administration of tariffs across Australia. The Instrument does not explicitly outline exclusions or thresholds but operates under the broader framework of the Customs Act 1901 and its subsidiary legislation. The revocation and issuance of new TCOs are executed in accordance with the provisions of the Customs Act, thereby maintaining consistency in the application of customs duties throughout the country.
Key Provisions
The Tariff Concessions Revocation Instrument 107/2006 operates under the Customs Act 1901, specifically section 269SD(2), which mandates the revocation of Tariff Concession Orders (TCOs) when certain conditions are met. This instrument revokes TCO 0602557 and establishes a new TCO 0618924, effective from the date the previous tariff classification ceased to apply to the relevant goods. This change was prompted by an amendment to the tariff classification, shifting from 8479.89.90 to 9305.91.00. The CEO of Customs must make this order if satisfied that the tariff classification in a TCO no longer applies due to an amendment in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer.
The Act imposes several obligations on the parties involved, primarily the CEO of Customs. Under section 269SD(2), the CEO must ensure that the tariff classification stated in any TCO accurately reflects the current tariff classification. If a discrepancy arises, the CEO is required to revoke the existing TCO and issue a new one with the updated classification. This obligation extends to ensuring that the new TCO is effective from the date the previous classification no longer applies, as outlined in section 269SD(4). Additionally, section 269SD(6) specifies that the provisions of section 269SD take precedence over section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.
Failure to comply with the requirements of the Customs Act 1901 regarding tariff concessions can result in significant consequences. While the Explanatory Statement does not detail specific offences or penalties for breaches related to TCOs, the Act generally imposes penalties for non-compliance with customs regulations. These can include fines, imprisonment, or both, depending on the severity of the breach. For instance, under the Customs Act, offences such as the improper classification of goods can attract penalties. The maximum penalties for such offences can vary but often include substantial fines and potential imprisonment terms, depending on the specific circumstances and the discretion of the court.