EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 12/2008
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 12/2008 was made on
21 August 2007. This instrument revokes 0617003 of classification 8418.61.00 and makes new TCO 0700603 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 12/2008 revokes TCO 0617003 and makes new TCO 0700603 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 12/2008, enacted to amend the Customs Act 1901, addresses the need to revise tariff concessions in response to updates in the Customs Tariff Act 1995. This legislative instrument was made under the authority of the Chief Executive Officer of Customs, who is empowered to make and revoke Tariff Concession Orders (TCOs) based on specified criteria. The primary objective of this instrument is to ensure that tariff concessions remain accurate and applicable in light of changes to tariff classifications, thereby maintaining the integrity of the customs duty regime. The instrument reflects the changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which necessitated the revocation of existing TCO 0617003 and the establishment of a new TCO 0700603, effective from 1 January 2007.
Scope and Application
The Tariff Concessions Revocation Instrument 12/2008, made under the Customs Act 1901, pertains to the revocation and replacement of specific Tariff Concession Orders (TCOs) to reflect changes in the Customs Tariff Act 1995. Specifically, this instrument revokes TCO 0617003, which applied to classification 8418.61.00, and introduces a new TCO, 0700603, applicable to classification 8418.69.00. This change is in response to amendments made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which became effective from 1 January 2007. The instrument was made by the Chief Executive Officer of Customs and applies to the goods covered by the affected classifications, ensuring that the correct tariff concessions are applied in accordance with the updated tariff classifications. The instrument does not specify exclusions or exemptions and is directly tied to the changes in the Customs Tariff Act 1995, affecting the duty rates on the specified goods.
Key Provisions
The Tariff Concessions Revocation Instrument 12/2008 operates under sections 269C, 269P and 269SD(2A) of the Customs Act 1901. Specifically, section 269C outlines the conditions under which Tariff Concession Orders (TCOs) can be made, while section 269P details the revocation process. Section 269SD(2A) mandates that when a tariff classification stated in a TCO is affected by an amendment in the Customs Tariff Act 1995, the Chief Executive Officer of Customs must revoke the existing TCO and issue a new one reflecting the updated tariff classification. This particular instrument revokes TCO 0617003 of classification 8418.61.00 and replaces it with TCO 0700603 of classification 8418.69.00, effective from 1 January 2007.
The obligations imposed by this Act on the parties or entities it governs include ensuring that the goods subject to the TCO are correctly classified under the applicable tariff. The CEO of Customs is tasked with making the necessary orders to reflect changes in tariff classifications, which requires a thorough understanding of both the Customs Act 1901 and the Customs Tariff Act 1995. Importers and exporters must also stay informed about these changes to comply with the new tariff classifications and to apply the correct rates of customs duty.
Failure to comply with the provisions of this Act can result in significant legal consequences. The Act does not explicitly state penalties for non-compliance, but incorrect classification of goods can lead to overpayment or underpayment of customs duties, which may attract penalties, interest, and potential fines. Furthermore, persistent non-compliance can result in more severe civil or criminal penalties, including prosecution and imprisonment, as stipulated under other sections of the Customs Act 1901. The specific penalties for such breaches would depend on the circumstances and the severity of the non-compliance.