EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 11/2008
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 11/2008 was made on
21 August 2007. This instrument revokes 0610082 of classification 8418.61.00 and makes new TCO 0700605 of classification 8418.69.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 11/2008 revokes TCO 0610082 and makes new TCO 0700605 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 11/2008, made under the Customs Act 1901, was introduced to address the need for updating tariff concession orders due to changes in the Customs Tariff Act 1995. This instrument revokes the existing Tariff Concession Order (TCO) 0610082 and replaces it with a new TCO 0700605, reflecting the amendments to the Customs Tariff Act 1995, specifically those contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The instrument was enacted by the Chief Executive Officer of Customs, who is authorised to make such orders under the Act, and it was implemented on 21 August 2007. The objective is to ensure that tariff concessions remain aligned with the current tariff classifications, thereby maintaining the integrity of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 11/2008 pertains to the Customs Act 1901, specifically under Part XVA which outlines the procedures for the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument revokes TCO 0610082 and introduces a new TCO 0700605, both of which relate to the classification of goods under the Customs Tariff Act 1995. The application of this instrument is directed towards entities and individuals involved in the import of goods affected by these tariff classifications. The revocation and introduction of these TCOs are a direct response to changes in the Customs Tariff Act 1995, reflecting the 2007 Harmonized System changes that took effect from 1 January 2007. This instrument has a national reach within Australia, applying across all states and territories. There are no stated exclusions or exemptions in this particular instrument, though it operates within the broader framework of the Customs Act 1901 which may contain other exclusions or exemptions. The scope of the instrument can be further extended or refined through subordinate instruments as necessary, though no such extensions or restrictions are specified in this context.
Key Provisions
The Tariff Concessions Revocation Instrument 11/2008 primarily serves to revoke an existing Tariff Concession Order (TCO) and replace it with a new one, as outlined in sections 269C and 269P of the Customs Act 1901. Specifically, the instrument revokes TCO 0610082 and introduces new TCO 0700605, both concerning the classification of goods under the Customs Tariff Act 1995. This change was necessitated by amendments in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which became effective from 1 January 2007. The instrument ensures that the new TCO aligns with the updated tariff classifications, thus maintaining consistency and accuracy in the application of customs duties.
The Act imposes certain obligations on the Chief Executive Officer of Customs (CEO), who is responsible for making or revoking TCOs. Under section 269SD(2A), the CEO must revoke a TCO if an amendment to the Customs Tariff Act 1995 means that the tariff classification stated in the TCO will no longer apply to the goods in question. This obligation is critical to ensure that the correct customs duty rates are applied to imported goods, reflecting the most current tariff classifications. The CEO must also make a new TCO to replace the revoked one, ensuring that there is no gap in tariff concession application for the affected goods.
Failure to comply with the provisions of the Customs Act 1901 and the associated instruments can lead to civil or criminal penalties. The precise consequences depend on the nature and severity of the breach. For example, knowingly providing false or misleading information in an application for a TCO could result in criminal charges, potentially leading to fines or imprisonment. Additionally, any party that fails to adhere to the updated tariff classifications could face financial penalties, including the payment of additional customs duties and interest on any unpaid amounts. The specific penalties are detailed in the Customs Act 1901 and related regulations, and they can vary based on the circumstances of the breach.