EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 12/2006
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 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 12/2006 was made on 14 February 2006. It revokes TCO 9006894 and makes TCO 0603465. The tariff classification has been changed from 4804.52 to 3921.11.00 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. 12/2006 revoked 9006894 and made new TCO 0603465 on 14 February 2006.
Overview
The Tariff Concessions Revocation Instrument 12/2006, enacted on 14 February 2006, amends the Customs Act 1901 to address issues arising from changes in tariff classifications that affect the application of Tariff Concession Orders (TCOs). This instrument was introduced to ensure that the tariff concessions continue to apply accurately and effectively by revoking an existing TCO and establishing a new one in response to the change in classification. The Customs Act 1901, enacted by the Australian Parliament, provides a framework for customs duties and tariff concessions, allowing the Chief Executive Officer of Customs to make and revoke TCOs based on specific criteria. The policy objective behind this revocation is to maintain the integrity of the tariff concessions scheme by ensuring that goods continue to benefit from the appropriate duty rates as dictated by their current tariff classification.
The Tariff Concessions Revocation Instrument 12/2006 revokes TCO 9006894 and establishes new TCO 0603465, reflecting a change in the tariff classification from 4804.52 to 3921.11.00. This change was made due to a revision in the Customs Tariff Act 1995, which necessitated the update of the applicable duty rates for the goods in question. The instrument was enacted without consultation as the change was deemed minor and did not substantially alter existing arrangements. The revocation and creation of the new TCO took effect from the day when the old TCO's tariff classification ceased to apply to the goods, ensuring a seamless transition in tariff treatment.
Scope and Application
The Tariff Concessions Revocation Instrument 12/2006, under the Customs Act 1901, applies to the revocation and replacement of a Tariff Concession Order (TCO) that concerns specific goods affected by a change in tariff classification. This act specifically affects the entities and goods that were subject to TCO 9006894, which was revoked and replaced with TCO 0603465, as a result of a change in tariff classification from 4804.52 to 3921.11.00. The revocation and subsequent establishment of the new TCO are mandated by the Chief Executive Officer of Customs, who must act upon the identified changes in tariff classification or legal determinations. The geographic scope of this legislation is national, as it pertains to the application of customs duties across Australia. The instrument does not specify any exclusions or exemptions, and its application is governed by the provisions of the Customs Act 1901 and the Customs Tariff Act 1995. The commencement of the revocation and new TCO is effective from the day the tariff classification change came into effect, as outlined in the Act.
Key Provisions
The Tariff Concessions Revocation Instrument 12/2006, under section 269SD of the Customs Act 1901, revokes Tariff Concession Order (TCO) 9006894 and introduces a new TCO, 0603465, effective from the date of revocation. This instrument addresses changes in tariff classification, transitioning from the old classification of 4804.52 to the new classification of 3921.11.00, as necessitated by an amendment in the Customs Tariff Act 1995. The primary purpose of this instrument is to ensure that the correct tariff classification is applied to the relevant goods.
Entities governed by this Act, specifically those involved in the importation of goods that were previously covered under TCO 9006894, are now required to adhere to the new TCO 0603465. This includes updating their records and systems to reflect the new tariff classification, ensuring compliance with the revised duty rates and any other relevant provisions. The Chief Executive Officer of Customs (CEO) must be satisfied that the new classification is applicable from the specified date, which may be the day the old TCO came into force or a later date, as stipulated in section 269SD(4) of the Customs Act.
Failure to comply with the provisions of the Tariff Concessions Revocation Instrument 12/2006 could lead to civil or criminal consequences. While specific penalties are not detailed in the explanatory statement, breaches of the Customs Act generally could result in fines or imprisonment. The maximum penalties for offences under the Customs Act can vary, but they typically include substantial fines and potential imprisonment terms depending on the severity of the breach. It is essential for entities affected by this revocation to ensure they are fully compliant with the new TCO to avoid any legal repercussions.