Overview

The Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the regulation of imports and exports, including the imposition of customs duty. To provide targeted relief from customs duty for specific goods, the Act allows for the creation of Tariff Concession Orders (TCOs) which apply a lower rate of duty to goods that meet certain criteria. The Tariff Concessions Revocation Instrument 116/2011 was introduced to address the inefficiency of maintaining TCOs that are no longer being utilised. The Instrument was made on 29 July 2011 and revokes TCO 0805819 due to the Chief Executive Officer of Customs being satisfied that it had not been used in the two years prior. The policy objective of this revocation is to streamline the tariff concessions scheme by removing unused TCOs, thereby ensuring the scheme remains effective and responsive to current economic conditions.

Scope and Application

The Tariff Concessions Revocation Instrument 116/2011, which revokes Tariff Concession Order (TCO) 0805819 under the Customs Act 1901, applies specifically to entities or individuals who have been granted tariff concessions on certain goods. This instrument operates within the framework set by sections 269C, 269P, and 269SD of the Act, which govern the establishment and revocation of TCOs. The revocation is effective from the date the Chief Executive Officer of Customs becomes satisfied that the TCO in question has not been used for the preceding two years. The Act's application is national, as it pertains to federal customs regulations. Notably, the revocation does not require consultation with stakeholders, as it is based on the inactivity of the TCO and is unlikely to impact businesses adversely. The instrument operates independently of the Legislative Instruments Act 2003, which typically prohibits retrospective legislative changes, ensuring that the revocation has legal standing despite this prohibition.

Key Provisions

The Tariff Concessions Revocation Instrument 116/2011 (2011 Instrument) revokes Tariff Concession Order (TCO) 0805819 under sections 269C and 269P of the Customs Act 1901 (the Act). This revocation was made on 29 July 2011 by the Chief Executive Officer of Customs (the CEO) based on their satisfaction that the TCO had not been used in the preceding two years. The revocation became effective from the day the CEO was satisfied that the TCO had not been quoted in an import entry to secure a concessional rate of duty (subsection 269SD(1A)). This revocation means that the lower rate of customs duty that applied to goods subject to TCO 0805819 is no longer applicable. The 2011 Instrument imposes certain obligations on the parties governed by the Act. Specifically, it requires the CEO to review and monitor the use of TCOs to ensure they remain necessary and relevant. If the CEO determines that a TCO has not been quoted in an import entry to secure a concessional rate of duty for two consecutive years, they must revoke the TCO (subsection 269SD(1A)). Additionally, the CEO must ensure that the revocation does not contravene section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments (subsection 269SD(6)). There are no specific offences, penalties, or consequences outlined in the 2011 Instrument for the revocation of TCO 0805819. The revocation is purely administrative and does not involve any criminal or civil penalties. However, the revocation of a TCO may have indirect consequences for businesses that previously relied on the concessional rate of duty provided by the TCO. These businesses may need to adjust their import strategies and potentially incur higher customs duty costs. It is important for affected businesses to be aware of the revocation and its implications on their operations.