EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 12/2009
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 12/2009 was made on 21 July 2008. It revokes TCO 0609979 and makes TCO 0816732. The tariff classification has been changed from 8474.90.00 to 8483.40.19 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. 12/2009 revoked 0609979 and made new TCO 0816732 on 21 July 2008, with the Revocation date of effect as from 6 June 2006
Overview
The Customs Act 1901, enacted by the Parliament of Australia, established a framework for the application and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This Act addresses the need to adjust tariff classifications of goods subject to concessions, ensuring they remain aligned with the Customs Tariff Act 1995 and decisions of relevant tribunals. The Tariff Concessions Revocation Instrument 12/2009 was introduced to rectify the misalignment of tariff classifications due to changes in the Customs Tariff Act 1995. This instrument revoked TCO 0609979 and introduced TCO 0816732, effective from 6 June 2006, to reflect the updated tariff classification. The policy objective was to maintain consistency in tariff applications and ensure compliance with legislative changes without requiring extensive consultation due to the minor nature of the adjustment.
Scope and Application
The Tariff Concessions Revocation Instrument No 12/2009 applies to the revocation of Tariff Concession Order (TCO) 0609979 and the creation of new TCO 0816732 under the Customs Act 1901. This instrument is made pursuant to sections 269C, 269P, and 269SD of the Act, which govern the conditions and process for the making and revocation of TCOs. The Instrument specifically addresses the alteration in tariff classification from 8474.90.00 to 8483.40.19, triggered by a change in the Customs Tariff Act 1995. The new TCO, effective from the revocation date, applies to goods that were previously covered by TCO 0609979. The revocation and subsequent application of the new TCO take effect from 6 June 2006, as outlined in the instrument. The instrument does not specify any exclusions, exemptions, or thresholds, and its application is confined to the changes in tariff classification. The revocation and creation of the new TCO are governed by the provisions of the Customs Act 1901 and do not require further consultation as the changes are considered minor and of a machinery nature.
Key Provisions
The Tariff Concessions Revocation Instrument No. 12/2009 (Tariff Concessions Revocation Instrument 12/2009) under the Customs Act 1901 (the Act) primarily addresses the revocation of a Tariff Concession Order (TCO) and the subsequent issuance of a new TCO (sections 269C and 269P). Specifically, this instrument revokes TCO 0609979 and establishes TCO 0816732, following a change in tariff classification from 8474.90.00 to 8483.40.19. This change was necessitated by an amendment in the Customs Tariff Act 1995, resulting in the altered tariff classification for the goods involved (subsection 269SD(2)).
The Act imposes several obligations on the Chief Executive Officer of Customs (the CEO) concerning the management of TCOs. According to the Act, the CEO must ensure that a TCO is made if the application meets the core criteria, specifically when no substitutable goods are produced in Australia on the day the application is lodged (subsection 269SD(2)). Additionally, the CEO must revoke a TCO if, due to a tariff classification change or other specified reasons, the classification stated in the TCO no longer applies to the goods in question. This revocation necessitates the issuance of a new TCO to reflect the updated tariff classification. The revocation and new TCO issuance must take effect from the date when the original tariff classification no longer applies to the goods (subsection 269SD(2) and (4)).
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 12/2009 may result in legal consequences. While the explanatory statement does not explicitly detail specific offences, penalties, or civil/criminal consequences, breaches of customs regulations generally attract significant penalties under the Customs Act. These penalties can include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any additional provisions in the Customs Act or other relevant legislation. The Act also ensures that the revocation order's effect is not limited by retrospective legislative instruments, as provided in section 12 of the Legislative Instruments Act 2003 (subsection 269SD(6)).