EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 123/2007
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(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 123/2007 was made on 12 July 2007. It revokes TCO 9710834 and makes TCO’s 0704890 and 0711125. The tariff classifications have been changed from 8438.90.90 to 4016.99.00 and 8438.90.90 because of tariff classification changes.
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. 123/2007 revoked 9710834 and made new TCO’s 0704890 and 0711125 on 12 July 2007, with the Revocation date of effect as from 10 December 1997.
Overview
The Tariff Concessions Revocation Instrument 123/2007, enacted on 12 July 2007, was developed under the authority of the Customs Act 1901. This legislative instrument addresses the need to adjust tariff concession orders when there are changes in tariff classifications, ensuring that the correct rates of customs duty are applied to imported goods. The Customs Act 1901, enacted by the Parliament of Australia, provides the framework for tariff concessions to be granted or revoked by the Chief Executive Officer of Customs, based on specific criteria and changes in tariff classification. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the applicable tariff classifications accurately reflect the goods in question. The instrument revokes Tariff Concession Order 9710834 and establishes new orders 0704890 and 0711125 to correct the tariff classifications from 8438.90.90 to 4016.99.00 and 8438.90.90, respectively, due to changes in tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 123/2007, operating under the Customs Act 1901, pertains to the revocation and creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders, which apply to specific goods, determine the rate of customs duty. The Instrument revokes TCO 9710834 and establishes new TCOs 0704890 and 0711125, effective from 12 July 2007 and retroactively from 10 December 1997. The changes in tariff classifications, from 8438.90.90 to 4016.99.00 and 8438.90.90, are due to amendments in the Customs Tariff Act 1995. The Instrument's application is nationwide, affecting entities and persons engaged in the importation of goods subject to these tariff classifications. The revocation and creation of TCOs ensure compliance with current tariff regulations, and the Instrument operates within the legal framework set by the Customs Act, notwithstanding certain retrospective legislative prohibitions under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 123/2007 operates under sections 269C, 269P, and 269SD(2) of the Customs Act 1901. It permits the Chief Executive Officer of Customs (CEO) to revoke and create new Tariff Concession Orders (TCO) when the tariff classification for specific goods changes due to amendments in the Customs Tariff Act 1995, court decisions, or advice from a Customs officer. The instrument revoked TCO 9710834 and introduced TCOs 0704890 and 0711125, effective from 12 July 2007, with a retroactive revocation date of 10 December 1997.
The Act imposes several obligations on the CEO and other parties involved. Firstly, the CEO must make an order to revoke a TCO if certain conditions are met, such as a change in tariff classification. Secondly, the CEO must create a new TCO to reflect the updated tariff classification. These obligations ensure that the tariff concessions accurately reflect the current tariff classifications for the goods in question. Additionally, section 269SD(6) ensures that the CEO’s authority to make these orders remains valid despite any restrictions in the Legislative Instruments Act 2003 that might otherwise prohibit retrospective changes.
The Tariff Concessions Revocation Instrument 123/2007 does not explicitly state any offences, penalties, or consequences for non-compliance with its provisions. However, it is reasonable to infer that any failure to comply with the Act's requirements could result in legal consequences. Such consequences might include the continued application of higher customs duty rates on the affected goods, leading to financial penalties for importers. Although the instrument does not specify maximum penalties, breaches of the Customs Act generally carry significant fines and potential criminal sanctions under the relevant provisions of the Act.