EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 13/2009
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 13/2009 was made on 8 August 2008. It revokes TCO 0816732 and makes TCO 0825364. The tariff classification has been changed from 8483.40.19 to 8483.40.90 because of a tariff classification change.
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. 13/2009 revoked 0816732 and made new TCO 0825364 on 8 August 2008, with the Revocation date of effect as from 6 June 2006
Overview
The Customs Act 1901 was enacted to facilitate the regulation of customs and excise duties in Australia, establishing a comprehensive framework for the administration of customs laws. The Tariff Concessions Revocation Instrument 13/2009 was introduced to address a specific issue within the customs duty system where tariff concessions had to be adjusted due to changes in tariff classifications. This instrument, made by the Chief Executive Officer of Customs, revokes a previous Tariff Concession Order (TCO) and issues a new one to reflect the updated classification. The policy objective is to ensure that customs duty rates accurately reflect the current tariff classifications, thereby maintaining the integrity and fairness of the customs duty system. The instrument was enacted without consultation as the changes were considered minor and of a machinery nature, not substantially altering existing arrangements. The changes came into effect on the day the previous tariff classification ceased to apply to the goods, aligning with the provisions of the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 13/2009 applies to goods that are subject to Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, it revokes TCO 0816732 and replaces it with TCO 0825364, altering the tariff classification of the goods due to changes in the Customs Tariff Act 1995. This instrument is applicable to the goods affected by these TCOs and is overseen by the Chief Executive Officer of Customs, who is responsible for ensuring that the correct tariff classification is applied in line with the legislative requirements. The geographic reach of this instrument is national, as it pertains to the application of customs duties across Australia. The instrument does not apply to any specific persons, entities, or industries but rather to the goods that meet the criteria outlined in the Customs Act 1901. There are no exclusions or exemptions explicitly stated, and the thresholds for tariff concessions are set by the Act itself. The instrument’s application may be extended or restricted through subordinate instruments, as permitted under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 13/2009 (sections 269SD(2) and 269SD(4)) revokes Tariff Concession Order (TCO) 0816732 and establishes a new TCO 0825364, effective from 8 August 2008. This legislative instrument operates under sections 269C, 269P, and 269SD of the Customs Act 1901. It mandates that if the Chief Executive Officer (CEO) of Customs is satisfied that the tariff classification in a TCO has been altered due to a change in the Customs Tariff Act 1995 or other specified reasons, they must revoke the existing TCO and issue a new one reflecting the updated tariff classification. The new TCO, 0825364, adjusts the tariff classification from 8483.40.19 to 8483.40.90 as a result of this change.
The obligations imposed by this instrument on the parties involved include the requirement for the CEO to ensure that any changes in tariff classifications due to legislative amendments, court decisions, or written advice from Customs officers are promptly addressed by revoking the affected TCO and issuing a new one. This ensures that the correct customs duty rates continue to apply to the relevant goods. Furthermore, entities or individuals relying on the tariff concessions must remain aware of any changes in tariff classifications that might affect their operations, ensuring compliance with the updated TCO.
Failure to adhere to the provisions of the Customs Act 1901, particularly in relation to the proper application of customs duties as outlined in the TCOs, may result in legal consequences. Although the explanatory statement does not explicitly detail offences, penalties, or consequences for breaches, the Customs Act 1901 itself provides for various penalties, including fines and imprisonment, for breaches related to customs duties. The specific penalties for non-compliance would depend on the nature and severity of the breach, as outlined in the broader Customs Act.