EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 11/2009
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 11/2009 was made on 1 August 2008. It revokes TCO 0504353 and makes TCO 0821517. The tariff classification has been changed from 7612.90.00 to 7615.19.00 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. 11/2009 revoked 0504353 and made new TCO 0821517 on 1 August 2008, with the Revocation date of effect as from 1 August 2008
Overview
The Customs Act 1901, enacted by the Australian Parliament, includes provisions for Tariff Concession Orders (TCOs) which reduce customs duty on certain goods. The Tariff Concessions Revocation Instrument 11/2009 was introduced to address a gap in the Customs Act concerning the revocation and amendment of TCOs when there are changes in tariff classifications. This instrument revokes TCO 0504353 and establishes TCO 0821517 due to a change in tariff classification, reflecting a need for updated concessions in line with the Customs Tariff Act 1995. The policy objective, as stated in the explanatory statement, is to ensure that the TCOs accurately reflect the current tariff classifications, thereby maintaining consistency and fairness in customs duty application. The instrument was enacted on 1 August 2008, with the revocation taking effect from the same date.
Scope and Application
The Tariff Concessions Revocation Instrument No 11/2009, under the Customs Act 1901, pertains to the revocation and replacement of Tariff Concession Orders (TCOs) concerning customs duty rates on specific goods. This instrument applies to the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs to ensure that the appropriate tariff rates are applied to imported goods. The instrument specifically revokes TCO 0504353 and introduces TCO 0821517, effective from 1 August 2008, due to a change in tariff classification. The instrument's reach is national, governed by the Commonwealth, and it applies to the classification and duty rates of imported goods, ensuring compliance with current tariff regulations. The instrument does not explicitly state exclusions, exemptions, or thresholds, but it operates within the framework of the Customs Act and related legislative provisions, which may include certain conditions or limitations. Any further application or interpretation of the instrument may be detailed in subordinate instruments or regulations that extend or restrict its provisions.
Key Provisions
The Tariff Concessions Revocation Instrument 11/2009 primarily operates under sections 269C and 269P of the Customs Act 1901 (the Act) to revoke an existing Tariff Concession Order (TCO) and establish a new one. Specifically, section 269SD(2) mandates that the Chief Executive Officer of Customs (the CEO) must revoke TCO 0504353 and establish TCO 0821517, due to a change in tariff classification (section 269SD(2)). The new TCO, 0821517, replaces the old TCO, 0504353, and modifies the tariff classification from 7612.90.00 to 7615.19.00 (section 269SD(2)). The Instrument was executed on 1 August 2008, and the changes took effect from the same date (subsection 269SD(2) and (4)).
The Act imposes several obligations on the parties involved. The CEO is required to review the tariff classification of goods subject to a TCO in light of changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers (subsection 269SD(2)). If it is determined that the tariff classification no longer applies to the goods, the CEO must revoke the existing TCO and issue a new one (subsection 269SD(2)). This process ensures that the tariff concessions accurately reflect the current tariff classifications. The Act also requires that these changes be implemented despite certain prohibitions on retrospective legislative instruments as per section 12 of the Legislative Instruments Act 2003, as clarified by subsection 269SD(6).
In terms of breaches and penalties, the Act does not explicitly outline specific offences, penalties, or consequences for non-compliance with the revocation and new establishment of a TCO. However, any failure to adhere to the requirements set out in sections 269C and 269P could potentially lead to legal consequences, such as challenges to the validity of the tariff concessions or disputes over customs duty obligations. These issues would likely be resolved through administrative or judicial processes, where the correctness and legality of the CEO’s actions could be scrutinised.
The Tariff Concessions Revocation Instrument 11/2009 is designed to maintain the integrity and accuracy of the tariff concessions system by ensuring that the tariff classifications applied to goods are current and correct. By revoking TCO 0504353 and establishing TCO 0821517, the Instrument reflects the updated tariff classification, thereby ensuring that the customs duty applied to the goods is appropriate and compliant with the Customs Act 1901. The process is governed by the Act's provisions, which mandate the CEO to act when changes necessitate a revision in tariff concessions.