EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 13/2008
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 13/2008 was made on
21 August 2007. This instrument revokes 9705667 of classification 8418.61.00 and makes new TCO 0700610 of classification 8418.69.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 13/2008 revokes TCO 9705667 and makes new TCO 0700610 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 13/2008 was enacted in 2008 to address discrepancies in the tariff classifications of goods as per the Customs Tariff Act 1995. This instrument revokes Tariff Concession Order 9705667 and introduces a new Tariff Concession Order 0700610, reflecting changes brought about by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The Customs Act 1901, under which this instrument operates, allows the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders based on specific criteria, including the production status of substitutable goods in Australia. The policy objective behind this instrument is to ensure that tariff classifications align with the most recent amendments in the Customs Tariff Act, thereby maintaining consistency and accuracy in the application of customs duties.
Scope and Application
The Customs Act 1901, through its Part XVA, establishes a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation applies to entities and individuals who import goods subject to these orders, aiming to provide a lower rate of customs duty when certain conditions are met. Specifically, a TCO is applicable if, on the day the application was lodged, no substitutable goods were being produced in Australia in the ordinary course of business. The Act has a national jurisdictional reach, affecting all states and territories within Australia. However, it does not extend to goods that are subject to alternative tariff classifications as per amendments in the Customs Tariff Act 1995. The Tariff Concessions Revocation Instrument 13/2008 revokes a specific TCO and introduces a new one, reflecting changes to the Customs Tariff Act 1995 and taking effect from 1 January 2007. The revocation and establishment of these orders are governed by subsection 269SD(2A) of the Customs Act 1901, ensuring that the tariff classifications remain accurate and up-to-date with legislative amendments.
Key Provisions
The Tariff Concessions Revocation Instrument 13/2008, made under the Customs Act 1901, primarily deals with the revocation and replacement of Tariff Concession Orders (TCOs) due to changes in the tariff classification of certain goods. According to section 269SD(2A), the Chief Executive Officer of Customs (CEO) is mandated to revoke a TCO if, following an amendment in the Customs Tariff Act 1995, the tariff classification stated in the TCO will no longer apply to the goods from a specific date. The instrument revokes TCO 9705667 and replaces it with new TCO 0700610, reflecting changes to the tariff classification which took effect from 1 January 2007.
The obligations imposed by this Act on the parties involved, particularly the CEO, are to ensure that the tariff classifications in TCOs remain accurate and applicable to the goods they cover. The CEO must monitor amendments to the Customs Tariff Act 1995 and, when necessary, revoke existing TCOs and issue new ones that align with the updated classifications. This is a procedural requirement designed to maintain the integrity of the customs duty system.
In terms of the consequences of failing to comply with the provisions of the Act, the explanatory statement does not specify particular offences, penalties, or civil/criminal consequences. However, non-compliance by the CEO with the statutory obligations to revise TCOs in line with tariff amendments could potentially lead to legal challenges or disputes regarding the customs duties applicable to affected goods. The precise repercussions would depend on the specific circumstances and the impact of any non-compliance on the parties involved, but the Act does not outline maximum penalties within the explanatory statement itself.