EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 11/2010
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 11/2010 was made on 18 February 2009. It revokes TCO 0512930 and makes TCO 0946553. The tariff classification has been changed from 3906.10.00 to 3214.10.00 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. 11/2010 revoked 0512930 and made new TCO 0946553 on 18 February 2009, with the Revocation date of effect as from 22 December 2005.
Overview
The Tariff Concessions Revocation Instrument 11/2010 was enacted to address the issue of tariff classification changes affecting goods subject to Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was made to facilitate the revocation of an existing TCO and the creation of a new TCO in response to changes in tariff classification, ensuring that the correct duty rates are applied to the relevant goods. The instrument was introduced by the Chief Executive Officer of Customs (CEO), as authorised by the Customs Act 1901, specifically under sections 269C, 269P, and 269SD. The primary policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that goods are correctly classified and subject to the appropriate customs duty rates. The instrument ensures that the revocation and creation of TCOs occur without the need for substantial consultation, as the changes are of a minor or machinery nature, thereby streamlining the process and avoiding unnecessary delays.
Scope and Application
The Tariff Concessions Revocation Instrument No 11/2010, made under the Customs Act 1901, applies to the revocation of a Tariff Concession Order (TCO) and the subsequent creation of a new TCO. This legislation directly affects entities and individuals involved in the importation of goods that were subject to the original tariff concession, TCO 0512930. The instrument was necessitated by a change in tariff classification, as per the Customs Tariff Act 1995, which altered the classification of specific goods. The instrument's reach extends across Australia, aligning with the national application of the Customs Act 1901. The revocation and creation of the new TCO are effective from 22 December 2005, with the revocation order taking effect on 18 February 2009. Notably, the instrument does not provide for any specific exclusions, exemptions, or thresholds, thereby applying uniformly to all affected goods and importers within the jurisdiction.
Key Provisions
The Tariff Concessions Revocation Instrument 11/2010 (Tariff Concessions Revocation Instrument No 11/2010) under the Customs Act 1901 (the Act) revokes Tariff Concession Order (TCO) 0512930 and introduces a new TCO 0946553, as detailed in sections 269C, 269P, and 269SD of the Act. The primary purpose of this instrument is to adjust the tariff classification of certain goods, which impacts the rate of customs duty applied to them. This adjustment is necessary because of a change in the tariff classification as per the Customs Tariff Act 1995.
The Tariff Concessions Revocation Instrument No 11/2010 imposes specific obligations on the parties involved, particularly the Chief Executive Officer of Customs (CEO) who is responsible for making and revoking TCOs. The CEO must ensure that if a TCO no longer applies to goods due to changes in tariff classification, the TCO is revoked, and a new TCO is issued. This process is mandated under subsection 269SD(2) of the Act, which requires the CEO to take action when certain conditions are met, such as amendments to the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal.
The Act also outlines the consequences for non-compliance with the provisions of the Tariff Concessions Revocation Instrument No 11/2010. While the explanatory statement does not specify particular offences, penalties, or consequences for breach, it is implied that failure to adhere to the requirements set forth in the Act and the Instrument could lead to legal ramifications. Typically, non-compliance with customs regulations can result in financial penalties, legal action, or other enforcement measures as stipulated in the Customs Act 1901 and related legislation.
The Revocation Instrument No 11/2010 came into effect on 18 February 2009, with the revocation of TCO 0512930 effective from 22 December 2005. This timing ensures that the new tariff classification is applied correctly from the date it should have been in effect, as outlined in subsections 269SD(2) and 269SD(4) of the Act. The Instrument also notes that it operates despite section 12 of the Legislative Instruments Act 2003, which prohibits certain retrospective legislative instruments, ensuring that the changes are legally valid and enforceable.