Overview

The Tariff Concessions Revocation Instrument 114/2007, enacted in 2007, addresses the issue of revoking tariff concessions on goods when a domestic producer in Australia claims that they can produce the goods domestically, thereby making the concession redundant. This Instrument is made under the authority of the Customs Act 1901, which was enacted by the Australian Parliament. The policy objective of this legislation is to ensure that tariff concessions are only granted when genuinely necessary, protecting local industries from unfair competition when domestic production is viable. The revocation process is initiated when a producer requests the Chief Executive Officer of Customs to revoke a tariff concession order if they can demonstrate that they can produce the goods domestically, and that the concession is no longer necessary. The revocation takes effect from the date the request is lodged, ensuring a prompt response to legitimate claims.

Scope and Application

The Customs Act 1901, as amended by Tariff Concessions Revocation Instrument 114/2007, governs the revocation of Tariff Concession Orders (TCOs) for certain goods entering Australia. The Act applies to any person or entity that seeks to have a TCO revoked based on the production of substitutable goods within Australia. Specifically, the CEO of Customs has the authority to revoke a TCO if satisfied that a producer of substitutable goods exists in Australia and that, on the day the request for revocation was lodged, the CEO would not have made the TCO. This Act operates at the national level and its provisions apply across all states and territories in Australia. The revocation of TCOs under this Act is limited to circumstances where a producer of substitutable goods requests revocation and the CEO determines that the conditions for revocation are met. The Act does not extend to other types of concessions or duties unless specifically mentioned in subordinate instruments.

Key Provisions

The main sections of the Tariff Concessions Revocation Instrument No 114/2007 are Sections 269SC(1), (3), and (6). Section 269SC(1) and (3) of the Customs Act 1901 require the Chief Executive Officer of Customs (the CEO) to make an order revoking a Tariff Concession Order (TCO) if the CEO is satisfied that the person requesting the revocation is a producer in Australia of substitutable goods in relation to the goods covered by the TCO and that, if the TCO were not in force on the day of the request, the CEO would not have made the TCO. Section 269SC(6) specifies that the order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged, overriding the prohibition on retrospective legislative instruments set out in Section 12 of the Legislative Instruments Act 2003. The Tariff Concessions Revocation Instrument No 114/2007 imposes several obligations and requirements on the parties it governs. Firstly, the CEO must, as soon as practicable after receiving a request for the revocation of a TCO, publish a notice in a Gazette that includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates (subsection 269SC(1A)). Secondly, upon receiving a request to revoke a TCO, the CEO must satisfy themselves that the conditions outlined in Sections 269SC(1) and (3) are met before making an order to revoke the TCO. Failure to comply with the requirements of the Tariff Concessions Revocation Instrument No 114/2007 may result in civil or criminal consequences. However, the explanatory statement does not specify any particular offences, penalties, or consequences for breach of the Instrument. It is important to note that the revocation of a TCO may have significant financial implications for importers and exporters, as it may result in the imposition of higher rates of customs duty on the goods covered by the TCO. Therefore, it is crucial that all parties comply with the requirements of the Instrument to avoid any potential legal or financial repercussions.