EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 12/2007
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 12/2007 was made on
4 January 2007. This instrument revokes 9700428 of classification 8418.61.00 and makes new TCO 0614809 of classification 8418.69.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 12/2007 revokes TCO 9700428 and makes new TCO’s 0614809 in its place, with effect from 1 January 2007.
Overview
The Customs Act 1901 was enacted to provide a comprehensive framework for the administration of customs duties in Australia. The Tariff Concessions Revocation Instrument 12/2007, which was made under the authority of this Act, addresses the need to update tariff classifications in response to amendments in the Customs Tariff Act 1995. This instrument was introduced to ensure that tariff concessions continue to accurately reflect the current tariff classifications, maintaining the integrity and effectiveness of the tariff concession scheme. The instrument was enacted by the Chief Executive Officer of Customs, as authorised by sections 269C, 269P, and 269SD(2A) of the Customs Act 1901, in response to the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The policy objective is to streamline and modernise the tariff concessions, ensuring they align with the most recent international trade classifications and standards.
Scope and Application
The Tariff Concessions Revocation Instrument 12/2007 under the Customs Act 1901 applies to specific tariff concession orders concerning customs duty rates on certain imported goods. This instrument is applicable to the goods identified by the revoked Tariff Concession Order 9700428 of classification 8418.61.00 and the newly introduced Tariff Concession Order 0614809 of classification 8418.69.00, which reflect changes due to amendments in the Customs Tariff Act 1995. The revocation and establishment of these orders are made by the Chief Executive Officer of Customs in accordance with the Customs Act 1901. The geographical reach of this instrument is nationwide, affecting all imported goods subject to the specified tariff classifications within Australia. The instrument does not outline specific exclusions or exemptions but is subject to the broader conditions and criteria set out in the Customs Act 1901. The application and effect of the instrument are further defined through the subordinate legislation process, which allows for the revocation and creation of TCOs in response to changes in tariff classifications.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 12/2007, which operates under the Customs Act 1901, are sections 269C, 269P, and 269SD(2A). These sections provide the framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). Specifically, section 269C allows for the making of TCOs if certain criteria are met, while section 269P deals with the revocation of TCOs when the conditions for their existence are no longer met. Section 269SD(2A) mandates that the CEO must revoke a TCO and issue a new one if changes to the Customs Tariff Act 1995 mean that the tariff classification in the TCO will no longer apply to the goods in question.
The Tariff Concessions Revocation Instrument 12/2007 imposes specific obligations on the CEO of Customs, including the duty to revoke the existing TCO 9700428 and issue a new TCO 0614809 in its place. These obligations stem from the need to reflect changes to the Customs Tariff Act 1995, as outlined in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The CEO must ensure that the new TCO accurately reflects the updated tariff classification and that the revocation and creation of TCOs take effect from 1 January 2007, aligning with the changes in the tariff system.
In terms of potential consequences, while the explanatory statement does not explicitly mention any offences, penalties, or civil/criminal consequences for non-compliance with the requirements set out in the Tariff Concessions Revocation Instrument 12/2007, it is reasonable to infer that failure to adhere to the directives could lead to legal ramifications under the Customs Act 1901. Typically, breaches of the Customs Act could result in fines or other penalties as stipulated in the Act, with the specific penalties depending on the nature and severity of the breach. It is important for the CEO and relevant stakeholders to ensure compliance to avoid any legal repercussions.