EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 128/2007
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
TST Carpet Manufacturers Pty Ltd requested that the CEO revoke TCO 0606142 which covers car mats.
Instrument
Tariff Concessions Revocation Instrument No 128/2007 was made on 20 July 2007. It revokes TCO 0606142 as the CEO is satisfied that TST Carpet Manufacturers Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) 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Tariff Concessions Revocation Instrument No.128/2007, TCO 0606142, was revoked on 20 July 2007 with the Revocation date of effect as from 6 July 2007.
Overview
The Customs Act 1901 was enacted to provide a comprehensive framework for the regulation and administration of customs and excise duties in Australia. The Tariff Concessions Revocation Instrument 128/2007, made under this Act, addresses the specific problem of revoking tariff concession orders when a domestic producer of substitutable goods requests such a revocation. This instrument was introduced to ensure that the tariff concessions do not unfairly benefit imported goods over domestically produced alternatives, thereby maintaining a level playing field for local industries. The revocation was enacted by the Chief Executive Officer of Customs, following a request by TST Carpet Manufacturers Pty Ltd, and was published in a Gazette as required by the Act. The revocation came into effect from the date the request was lodged, demonstrating the swift action provided for by the legislative framework to address industry concerns.
Scope and Application
The Tariff Concessions Revocation Instrument 128/2007, made under the Customs Act 1901, applies specifically to the revocation of Tariff Concession Order (TCO) 0606142, which concerned car mats. This instrument is enacted to facilitate the revocation of TCOs when a producer in Australia demonstrates that they are capable of producing substitutable goods, thereby meeting the criteria outlined in sections 269C, 269P, and 269SB of the Act. The CEO of Customs must revoke a TCO if satisfied that the requesting producer is indeed capable of producing the substitutable goods and that, had the TCO not been in force on the day the revocation request was made, the CEO would not have made the TCO. This revocation applies to the specific entity, TST Carpet Manufacturers Pty Ltd, and the particular goods, car mats, as identified in the Instrument. The revocation is effective from the date the request was lodged, 6 July 2007, notwithstanding any contrary provisions in the Legislative Instruments Act 2003. This instrument operates within the Commonwealth jurisdiction, governing customs duties and tariffs across Australia.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 128/2007 are sections 269SC and 269SB of the Customs Act 1901. Section 269SB allows a person claiming to be a producer of substitutable goods in Australia to request the Chief Executive Officer (CEO) of Customs to revoke a Tariff Concession Order (TCO) under section 269C of the Act. Section 269SC outlines the conditions under which the CEO must make an order revoking a TCO. Specifically, the CEO must be satisfied that the person requesting the revocation is a producer of substitutable goods in Australia and that, if the TCO were not in force, the CEO would not have made the TCO on the day the application was lodged. In this case, Tariff Concessions Revocation Instrument 128/2007 revokes TCO 0606142 at the request of TST Carpet Manufacturers Pty Ltd, based on the CEO’s satisfaction with the conditions stipulated in section 269SC.
The obligations and requirements imposed by the Act on the parties involved primarily concern the procedures and criteria for requesting and processing the revocation of a TCO. The person claiming to be a producer of substitutable goods must formally request the CEO to revoke the TCO and provide sufficient evidence to demonstrate that they meet the criteria specified in section 269SB. The CEO, in turn, must review the request and the relevant evidence, ensure that the conditions in section 269SC are met, and make an order to revoke the TCO if satisfied. Additionally, as per subsection 269SC(1A), the CEO must publish a notice in a Gazette as soon as practicable after receiving a request for revocation, detailing the request and the specifics of the TCO. This transparency measure ensures that all stakeholders are informed about the proceedings.
The Act does not explicitly state any specific offences, penalties, or consequences for breach concerning the revocation of a TCO. However, it is implied that non-compliance with the requirements and procedures outlined in sections 269SB and 269SC could lead to legal challenges or disputes. For instance, if a producer fails to provide adequate evidence to substantiate their claim, the CEO may deny the request, and the TCO would remain in force. Conversely, if the CEO erroneously revokes a TCO without proper justification, it could lead to legal actions to reinstate the TCO or compensate affected parties. The legislative framework ensures that both parties adhere to the stipulated processes to maintain the integrity of the tariff concession scheme.