Tariff Concession Revocation Order 111/2006

Administered by Attorney-General's Department

Legislation au F2007L00027 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Tariff Concessions Revocation Instrument No. 111/2006

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 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 section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.

Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.

Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.

Crown Equipment Pty Ltd applied for a TCO in respect of double reach trucks in December 2000. In August 2006, Crown Equipment Pty Ltd requested revocation of TCO 0010046, stating that it had reorganised its operations and now qualified as a local producer of double reach trucks. In October 2006, the delegate of the CEO refused to revoke TCO 0010046.

Section 269SH of the Act allows a person affected by a decision in relation to a TCO application, who objects to the making of the decision, to apply to the CEO for its reconsideration.

Subsection 269SH(5) provides that where application is made for reconsideration of a decision made on a request for revocation, the CEO, having regard to:

(a) The request for revocation; and

(b) The information, documents and materials which the CEO was entitled to take into account in considering the request; and

(c) Any new matter produced to the CEO by the applicant for reconsideration which, under subsection (7), the CEO is not prevented from taking into account for that purpose;

must decide, not later than 60 days after the last day for lodgement of the application for reconsideration, whether to affirm the original decision or to substitute any other decision that the CEO might have made.

Under subsections 269SH(8) and (9) of the Act, where the CEO, on reconsideration, decides to substitute another decision, the substituted decision is taken to have been made when the original decision was made and if the substituted decision involves making a TCO, the TCO comes into force on the day on which, if the original decision had involved making the TCO, that TCO would have come into force.

In November 2006, Crown Equipment Pty Ltd requested that the CEO reconsider the decision to revoke TCO 0010046.

In December 2006, a delegate of the CEO decided to substitute the original decision to revoke TCO 0010046. The substituted decision was to revoke TCO 0010046.

Instrument

TCO No 0010046 was revoked on 19 December 2006. It declares that “DOUBLE REACH TRUCKS, NARROW AISLE”, retractable fork arm carriage,
rider seated OR rider standing, as defined in Australian
Standard 2359 Part 7 - 1995, having ALL of the following:
   (a) load capacity of less than 1 375 kg at a 600 mm load centre;
   (b) extended reach exceeding 1 300 mm;
   (c) battery powered;
   (d) cabin width less than 1 230 mm;
   (e) lift height of 5 m to 10.5 m;
   (f) operator positioned at right angles to the direction
are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is Free.

Consultation

At the time the request for revocation was lodged, the CEO published a notice in the Gazette in accordance with section 269SC of the Act regarding the fact that a request for revocation had been received. There is no provision for affected parties to lodge a submission with the CEO regarding why the TCO should not be revoked.

However, under section 269SF of the Act, the CEO may seek information, documents or material relating to the revocation. Information was sought from affected party i.e. Crown Equipment Pty Ltd.

Under subsection 269SH(3A), the CEO must publish a Gazette notice (as soon as practicable after receiving a request) stating:

(a) that the request has been lodged; and

(b) the date that the request was lodged; and

Such a notice was published in the Gazette on 11 October 2006.

Commencement

Subsection 269SH(8) provides, in part, if a substituted decision involves the making of a TCO, that TCO comes into force on the day on which, if the original decision had involved making the TCO, that TCO would have come into force. TCO No. 0010046 originally came into force on 11 December 2000 and hence has been revoked from 19 December 2006.

Overview

The Tariff Concessions Revocation Instrument No. 111/2006, enacted in 2006, addresses the problem of tariff concessions granted to specific goods under the Customs Act 1901, particularly in cases where the conditions for such concessions are no longer met. This instrument provides a mechanism for the Chief Executive Officer of Customs (CEO) to revoke Tariff Concession Orders (TCOs) when the original criteria for concession are no longer applicable, such as when substitutable goods are produced in Australia. The revocation is carried out through the issuance of a Gazette notice, as required by the Customs Act, and is subject to reconsideration by the CEO if an affected party objects to the revocation decision. The policy objective behind this instrument is to ensure that tariff concessions are only granted when genuinely warranted, promoting fair trade practices and maintaining the integrity of the tariff system.

Scope and Application

The Tariff Concessions Revocation Instrument No. 111/2006 pertains to the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901, which applies to the importation of certain goods into Australia. The Act primarily applies to any person or entity seeking to import goods that are eligible for tariff concessions, which are granted by the Chief Executive Officer of Customs (CEO) under specific conditions outlined in the Act. The scope of this legislation encompasses goods that are the subject of a TCO application, and it is applicable on a national level across Australia. Notably, the Act excludes goods specified in section 269SJ, which are ineligible for a TCO, and it also involves a process of reconsideration for decisions made by the CEO regarding TCO applications. The instrument itself extends the application of the Act by providing detailed specifications of the goods affected by the revocation of TCO No. 0010046, which originally pertained to double reach trucks meeting particular criteria and has now been revoked due to local production of substitutable goods.

Key Provisions

The Customs Act 1901 (the Act) allows for the establishment of Tariff Concession Orders (TCOs) through Part XVA, which applies a lower rate of customs duty to specified goods. Section 269F of the Act enables a person to apply to the Chief Executive Officer of Customs (CEO) for a TCO, provided the goods are not listed in section 269SJ, which specifies goods that cannot be subject to a TCO. Section 269C stipulates that an application meets the core criteria if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Definitions for terms like "goods produced in Australia" and "ordinary course of business" are found in sections 269D and 269E respectively. If the CEO is satisfied that the application meets these criteria, they must issue a written TCO as per section 269P(3). The Act imposes obligations on both the applicant and the CEO. An applicant must ensure that the goods they seek a TCO for are not listed in section 269SJ and that the application meets the core criteria outlined in section 269C. The CEO has the responsibility to decide whether an application meets these criteria and, if so, to issue a TCO. Additionally, the CEO must consider any requests for reconsideration under section 269SH, ensuring that such reconsiderations are completed within 60 days of the application being lodged. The CEO also has the authority to seek information, documents, or materials relevant to the revocation of a TCO as per section 269SF. Breach of the provisions under the Customs Act 1901 may result in civil or criminal consequences. While the explanatory statement does not explicitly detail specific offences or penalties, it is reasonable to infer that any non-compliance with the Act's provisions, such as submitting an ineligible application or failing to adhere to the stipulated timelines for reconsideration, could attract penalties as outlined in other sections of the Act. The exact nature and severity of penalties would typically depend on the specific breach and could potentially include fines or other legal repercussions.

Area of Law: Customs Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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