EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 132/2007
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 132/2007 was made on 6 August 2007. It revokes TCO 0704675 and makes TCO 0712475. The tariff classification has been changed from 8708.50.49 to 8431.49.90 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. 132/2007 revoked 0704675 and made new TCO 0712475 on 6 August 2007, with the Revocation date of effect as from 28 March 2007
Overview
The Customs Act 1901 was enacted to establish a framework for the administration of customs and excise in Australia. It provides the legal basis for the regulation of the importation and exportation of goods, including the imposition of customs duties and the facilitation of international trade. The Act was introduced to address the need for a comprehensive legislative structure governing customs procedures, ensuring efficient and consistent application of trade regulations. Part XVA of the Act outlines the mechanism for Tariff Concession Orders (TCOs), allowing for the temporary reduction or elimination of customs duty on certain goods under specific conditions. This provision was intended to support Australian industries by mitigating the impact of international competition on locally produced goods. The Tariff Concessions Revocation Instrument 132/2007, made by the Chief Executive Officer of Customs under the authority of the Customs Act 1901, revokes an existing TCO and establishes a new one due to a change in tariff classification. The policy objective of this revocation is to ensure the accuracy and relevance of tariff concessions in light of updated tariff classifications, thereby maintaining the integrity of the customs duty regime.
Scope and Application
The Tariff Concessions Revocation Instrument 132/2007 applies to entities and individuals who are subject to the Tariff Concession Orders (TCOs) specified in the Instrument. These TCOs pertain to goods that benefit from reduced customs duty rates, as stipulated under the Customs Act 1901. The Act's provisions, including the revocation and creation of new TCOs, are administered by the Chief Executive Officer of Customs. The scope of this legislation is national, affecting all states and territories within Australia, as it is grounded in the Commonwealth Customs Act 1901. The Instrument revokes TCO 0704675 and establishes TCO 0712475, effective from 28 March 2007, reflecting a change in tariff classification due to amendments in the Customs Tariff Act 1995. There are no stated exclusions or exemptions in this Instrument, and it operates under the broader framework of the Customs Act 1901, which may be further defined by subordinate instruments.
Key Provisions
The Tariff Concessions Revocation Instrument No. 132/2007 under the Customs Act 1901 primarily concerns the revocation of a previous Tariff Concession Order (TCO) and the creation of a new TCO. Specifically, section 269SD(2) of the Act stipulates that when the Chief Executive Officer (CEO) of Customs is satisfied that the tariff classification in a TCO no longer applies due to a change in the Customs Tariff Act 1995 or other specified reasons, the CEO must revoke the existing TCO and issue a new one. This was implemented with the revocation of TCO 0704675 and the issuance of TCO 0712475, effective from 28 March 2007 and 6 August 2007, respectively. This change was necessitated by the alteration in tariff classification from 8708.50.49 to 8431.49.90.
In terms of obligations, section 269SD(2) imposes a clear requirement on the CEO to monitor and adjust TCOs whenever there is a relevant change in tariff classification or legal interpretation. This ensures that the goods subject to the TCO are correctly classified and taxed under the Customs Act. The CEO must act promptly upon identifying that the tariff classification in a TCO is no longer applicable. Furthermore, section 269SD(4) allows the revocation to take effect from the day the tariff classification ceased to apply, which can be the same day as the original TCO came into force or a later date. Section 269SD(6) ensures that the revocation process is not hindered by the prohibitions under section 12 of the Legislative Instruments Act 2003, which typically prevents retrospective legislative instruments.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument No. 132/2007 can lead to significant legal consequences. The Act provides for both civil and criminal penalties for non-compliance. Under section 269ZD, penalties for breaches related to tariff concession orders can include fines and imprisonment. Specifically, the maximum penalty for an individual who contravenes the Act can be substantial, reflecting the importance of compliance with customs regulations. Additionally, the Act allows for the imposition of financial penalties for incorrect classification or underpayment of customs duty, which can result in significant financial repercussions for the non-compliant party. These provisions underscore the necessity for accurate and timely adherence to the tariff concession requirements set out by the Customs Act.