Overview

The Tariff Concessions Revocation Instrument 122/2011, enacted on 28 July 2011, is an instrument under the Customs Act 1901 that facilitates the revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument addresses the problem of unused tariff concessions by revoking TCOs that have not been quoted in an import entry to secure a concessional rate of duty for two consecutive years. This revocation is intended to ensure that tariff concessions are actively used and beneficial, thus maintaining the integrity of the customs duty scheme. The revocation of TCO 0812997, as detailed in this instrument, is effective from the date the CEO became satisfied that the TCO had not been utilised in the preceding two years, reflecting the policy objective of efficiently managing tariff concessions under the Customs Act. The instrument was enacted without consultation, given the inactivity of the specified TCO, and it operates despite certain retrospective legislative restrictions under the Legislative Instruments Act 2003.

Scope and Application

The Tariff Concessions Revocation Instrument No. 122/2011 pertains to the Customs Act 1901, which governs the application of customs duties and related matters in Australia. This specific instrument revokes Tariff Concession Order (TCO) 0812997, a measure that had been in place to allow for reduced customs duty on certain goods. The revocation applies to the Chief Executive Officer of Customs, who is empowered under the Act to administer and revoke such orders. This legislation affects the industries and entities that were previously benefiting from the reduced customs duty through TCO 0812997. Its jurisdictional reach is limited to Australia, applying federally across the Commonwealth. The Act does not specify exclusions or exemptions but operates on the condition that the TCO has not been quoted in an import entry to secure a concessional rate of duty for the two years preceding the decision to revoke. The Act's application can be extended or restricted through subordinate instruments, which may include further revocations or the establishment of new TCOs based on evolving economic and industrial conditions.

Key Provisions

The Tariff Concessions Revocation Instrument No. 122/2011, made under the Customs Act 1901, focuses on the revocation of a specific Tariff Concession Order (TCO), namely TCO 0812997 (section 269SD(1A)). This instrument was issued on 28 July 2011, revoking the TCO as the Chief Executive Officer of Customs (CEO) determined that it had not been quoted in any import entry for the preceding two years, thus rendering it unnecessary (section 269SD(1A)). The revocation is effective from the day the CEO became satisfied with the inactivity of the TCO, as per the provisions outlined in the Act (subsection 269SD(6)). Under this Act, the CEO has the authority to make and revoke TCOs, which are orders that apply lower rates of customs duty to specific goods (section 269C). For a TCO to be made, the application must meet certain core criteria, including the absence of substitutable goods produced in Australia at the time of application (section 269SD(1A)). The CEO's power to revoke a TCO is contingent upon their satisfaction that the TCO is no longer required, which typically happens if it has not been utilised in the two years preceding the decision (section 269SD(1A)). The obligations imposed by this Act on the relevant parties include ensuring that the TCOs are used appropriately and are revoked when they are no longer necessary, thereby maintaining the efficiency and relevance of the tariff concession scheme. The consequences of breaching the obligations outlined in the Customs Act 1901 can be significant. While the specific penalties are not detailed in the explanatory statement, breaches of the Act can lead to both civil and criminal consequences. Civil penalties may include fines, while criminal penalties can result in imprisonment, depending on the nature and severity of the breach. The maximum penalties for breaches are not explicitly stated in this particular instrument but would generally be determined by the relevant sections of the Customs Act 1901 and other applicable legislation. Compliance with the Act is essential to avoid these potential repercussions.