EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 119/2007
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 119/2007 was made on 5 July 2007. It revokes TCO 0701687 and makes TCO 0710057. The tariff classification has been changed from 8208.10.00 to 8202.31.00 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. 119/2007 revoked 0701687 and made new TCO 0710057 on 31 January 2007.
Overview
The Customs Act 1901, as amended, provides a framework for the administration of customs duties and includes provisions for the establishment and revocation of Tariff Concession Orders (TCOs). The Tariff Concessions Revocation Instrument 119/2007 was enacted to address a specific issue arising from changes in tariff classifications. This instrument was made by the Chief Executive Officer of Customs, pursuant to sections 269C, 269P, and 269SD of the Customs Act 1901, and it serves to revoke an existing TCO and establish a new one in light of changes to tariff classifications. The instrument was created in response to a need to maintain the accuracy of tariff classifications applied to goods under the TCO scheme, ensuring that the correct duty rates are applied. The instrument was enacted on 5 July 2007, and it revokes TCO 0701687, replacing it with TCO 0710057, effective from 31 January 2007. The revocation and creation of the new TCO were necessary to reflect the updated tariff classification from 8208.10.00 to 8202.31.00, necessitated by changes in the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 119/2007, made under the Customs Act 1901, applies to goods that were previously subject to Tariff Concession Order (TCO) 0701687, which has been revoked and replaced with TCO 0710057. The instrument affects entities or individuals who import goods classified under the affected tariff codes, ensuring compliance with the updated tariff classification. The changes are applicable nationwide as the Customs Act 1901 is a Commonwealth Act, thus its provisions and amendments extend across all states and territories in Australia. The revocation and creation of new TCOs are based on specific conditions outlined in the Act, such as amendments to the Customs Tariff Act 1995 or decisions from relevant courts and tribunals. Notably, the instrument does not require consultation as the changes are considered minor and of a machinery nature, not substantially altering existing arrangements. The revocation and new TCO took effect from the date when the original tariff classification ceased to apply, which was 31 January 2007, and the new TCO has effect from the date of revocation, despite any prohibitions on retrospective legislative instruments under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 119/2007 (F2007L02305) under the Customs Act 1901 addresses the revocation of a Tariff Concession Order (TCO) and the creation of a new one. Specifically, section 269SD(2) of the Act mandates the Chief Executive Officer of Customs (CEO) to revoke TCO 0701687 and issue a new TCO 0710057 due to changes in tariff classifications. This instrument took effect from 31 January 2007, as stipulated in the explanatory statement.
The Act imposes certain obligations on the CEO of Customs, particularly under section 269SD(2). The CEO must revoke the existing TCO if it is determined that the tariff classification no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from an officer of Customs. Additionally, the CEO must issue a new TCO reflecting the updated tariff classification. The instrument ensures these obligations are met by providing a clear legal basis for the revocation and the creation of a new TCO.
Failure to comply with the requirements under the Customs Act 1901 may lead to various civil or criminal consequences. However, the Explanatory Statement for this particular instrument does not specify penalties or offences associated with non-compliance. The general framework of the Customs Act 1901 would apply, and penalties may include fines or imprisonment depending on the severity of the breach. The specifics of these penalties are not detailed in the explanatory statement for this instrument but can be found in other sections of the Act.