Overview

The Customs Act 1901, enacted by the Australian Parliament, was introduced to establish a regulatory framework for the administration of customs and excise, ensuring the effective control of goods entering and leaving the country. One of its key provisions is Part XVA, which outlines the scheme for Tariff Concession Orders (TCOs). These orders provide for lower rates of customs duty on certain goods, contingent upon the fulfilment of specific criteria. The Tariff Concessions Revocation Instrument No. 124/2011, made on 29 July 2011 by the Chief Executive Officer of Customs, addresses the issue of unused TCOs by revoking TCO 0819450, as it had not been quoted in an import entry to secure a concessional rate of duty for the preceding two years. This revocation ensures that the tariff concession scheme remains efficient and aligned with current trade practices. The instrument operates under the authority granted by subsection 269SD(1A) of the Customs Act, and it has effect despite any prohibitions against retrospective legislative instruments as per section 12 of the Legislative Instruments Act 2003.

Scope and Application

The Customs Act 1901 provides for the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders grant lower rates of customs duty on specified goods. The Tariff Concessions Revocation Instrument No. 124/2011, made on 29 July 2011, revokes TCO 0819450 as it has not been used in the preceding two years. The revocation is effective from the day the CEO was satisfied that the TCO had not been used. This instrument applies to the specified TCO and the goods it covered, effectively nullifying the tariff concessions previously granted. It does not apply to other TCOs or goods not listed in TCO 0819450. The revocation has no impact on business, as the TCO had not been utilised for two years. The instrument operates within the framework of the Customs Act 1901 and overrides certain retrospective legislative instrument provisions under the Legislative Instruments Act 2003 to ensure its effectiveness.

Key Provisions

The Tariff Concessions Revocation Instrument 124/2011 (the Instrument) revokes Tariff Concession Order (TCO) 0819450 under the Customs Act 1901 (the Act). The Instrument was made on 29 July 2011 and came into effect on 27 July 2011 (subsection 269SD(6)). Under section 269SD(1A) of the Act, the Chief Executive Officer of Customs (the CEO) may revoke a TCO if satisfied that it has not been used in the preceding two years. In this case, the CEO revoked TCO 0819450 because it had not been quoted in an import entry to secure a concessional rate of duty in the two years preceding 27 July 2011. The Instrument imposes an obligation on the CEO to monitor the use of TCOs and revoke those that have not been used for two years. This is to ensure that tariff concessions are only applied to goods that genuinely require them and are not being misused. The CEO must be satisfied that a TCO has not been used before revoking it. Additionally, the Instrument requires the CEO to ensure that section 269SD of the Act has effect despite section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments. Failure to comply with the requirements of the Instrument may result in legal consequences. For example, if a TCO is revoked under the Instrument but is subsequently used in an import entry, the person responsible may be liable for a civil penalty under section 283AB of the Act. The maximum penalty for a civil penalty notice is $22,200 for a company and $4,440 for an individual (subsection 283AB(3)). Additionally, if a person knowingly or recklessly makes a false statement in an application for a TCO or in an import entry, they may be liable for a criminal offence under section 283AA of the Act, which carries a maximum penalty of $222,000 for a company and $44,400 for an individual (subsection 283AA(3)). The Instrument does not provide for any consultation before it was made. This is because the revocation of a TCO that has not been used for two years is unlikely to have an effect on business. However, the CEO must still ensure that the requirements of the Instrument are met to avoid legal consequences. The Instrument also has retrospective effect, which means that it applies to events that occurred before it was made. This is permitted under section 269SD(6) of the Act, which provides that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003.