EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 13/2007
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 13/2007 was made on 11 January 2007. It revokes TCO 0618603. The tariff classification 8515.31.10 has a free rate of duty.
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.13/2007 revokes 0618603 on 11 January 2007.
Overview
The Tariff Concessions Revocation Instrument 13/2007 was introduced as part of the Customs Act 1901 to address specific circumstances where tariff concession orders (TCOs) needed to be revoked due to changes in tariff classification, court decisions, or advice from Customs officers. This instrument, enacted to ensure the accuracy and relevance of tariff concessions, was made by the Chief Executive Officer of Customs (CEO) under sections 269C, 269P, and 269SD of the Customs Act 1901. The policy objective behind this revocation is to maintain the integrity of the tariff concessions scheme by ensuring that goods subject to a TCO are correctly classified under the Customs Tariff Act 1995. The Instrument, which came into effect on 11 January 2007, revokes TCO 0618603 and introduces a new TCO for the affected goods, effective from the revocation date. The revocation and new TCO issuance are designed to align with the relevant tariff classifications and court decisions, ensuring that the concessions remain accurate and effective.
Scope and Application
The Tariff Concessions Revocation Instrument 13/2007 under the Customs Act 1901 applies specifically to the revocation of Tariff Concession Orders (TCOs) for customs duty concessions. This particular instrument revokes TCO 0618603, which was made under section 269C of the Act, and replaces it with a new TCO. The revocation takes effect from the day the tariff classification no longer applies to the goods in question, as stipulated in subsection 269SD(2) of the Act. This process is triggered when the tariff classification is altered due to changes in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. The geographic and jurisdictional reach of this Act is nationwide, applying to all goods subject to customs duties in Australia. The Instrument, however, does not extend its application to any other territories outside of Australia's national jurisdiction. It should be noted that no consultation was conducted regarding this revocation as it was deemed minor and of a machinery nature, not substantially altering existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 13/2007 operates under the Customs Act 1901 and specifically addresses the revocation of Tariff Concession Orders (TCOs). Section 269SD(2) of the Act empowers the Chief Executive Officer of Customs (the CEO) to revoke a TCO if certain conditions are met, such as changes in tariff classification due to amendments in the Customs Tariff Act 1995, court decisions, or written advice from Customs officers. The instrument revokes TCO 0618603 with effect from 11 January 2007 due to a change in tariff classification, which now has a free rate of duty.
The obligations imposed by the Act on the parties affected by this revocation are primarily concerned with compliance and notification. The CEO is required to review and assess the circumstances leading to the revocation of a TCO, ensuring that the new tariff classification is accurately reflected in the new TCO. Businesses and individuals who rely on the tariff concessions must adjust their operations to align with the new classification and duty rates. The CEO must also ensure that the new TCO is correctly implemented and communicated to all relevant stakeholders to maintain transparency and fairness in the customs regime.
Violations of the provisions set out in the Customs Act 1901 can lead to both civil and criminal consequences. For example, Section 270 of the Act stipulates that a person who contravenes the provisions may be subject to a civil penalty. The maximum penalty for such an offence is generally outlined in the relevant sections of the Act. Additionally, Section 271 of the Act imposes criminal penalties for more serious breaches, which can include fines and imprisonment. The exact penalties are determined by the severity of the offence and are specified in the relevant sections of the Act. The Act also provides for the recovery of unpaid duties and other charges through legal proceedings.