EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 136/2007
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 136/2007 was made on 8 August 2007. It revokes TCO 0001731 and makes TCO 0712635. The tariff classification has been changed from 8518.21.00 to 8518.29.90 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. 136/2007 revoked 0001731 and made new TCO 0712635 on 8 August 2007, with the Revocation date of effect as from 17 February 2000
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for managing customs duties and tariffs, including the ability to grant tariff concessions on specific goods through Tariff Concession Orders (TCOs). The Tariff Concessions Revocation Instrument No 136/2007 was introduced to address the need for updating tariff classifications to reflect changes in the Customs Tariff Act 1995 or decisions made by the Administrative Appeals Tribunal. This instrument revokes the existing TCO 0001731 and establishes a new TCO 0712635 to ensure the correct tariff classification is applied to the goods, in this case, changing from 8518.21.00 to 8518.29.90 due to a tariff classification change. The instrument was made on 8 August 2007, with the revocation taking effect from 17 February 2000. The policy objective is to ensure that the application of tariff concessions accurately reflects current legislative and tribunal decisions, thereby maintaining fairness and efficiency in the customs duty system.
Scope and Application
The Customs Act 1901, under which the Tariff Concessions Revocation Instrument 136/2007 operates, applies to the application and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). These orders pertain to the lower rates of customs duty applied to specific goods when certain criteria are met, such as the absence of substitutable goods produced in Australia at the time of the application. The Act's jurisdiction is national, operating under the Commonwealth of Australia, and it applies to all entities and individuals involved in the importation of goods subject to TCOs. The revocation and creation of new TCOs occur when there is a change in tariff classification, as outlined in the Customs Tariff Act 1995, or following a decision by the Administrative Appeals Tribunal or advice from a Customs officer. The geographic reach of this legislation is nationwide, affecting all entities involved in the importation of goods that are subject to these orders. The Instrument revokes TCO 0001731 and establishes TCO 0712635, effective from 17 February 2000, illustrating the Act's capacity to amend and update tariff concessions through subordinate instruments.
Key Provisions
The Tariff Concessions Revocation Instrument 136/2007 operates under the Customs Act 1901 (the Act), specifically addressing the revocation and creation of Tariff Concession Orders (TCOs). Section 269C and 269P of the Act govern the establishment of TCOs, which apply reduced customs duties on specified goods. Subsection 269SD(2) mandates that if a TCO's tariff classification is altered due to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers, the CEO must revoke the existing TCO and issue a new one. This particular instrument, made on 8 August 2007, revoked TCO 0001731 and issued TCO 0712635 because of a change in tariff classification from 8518.21.00 to 8518.29.90.
The obligations imposed by the Act on the parties involved include ensuring that the tariff classifications stated in TCOs accurately reflect the goods' classification. The CEO of Customs must closely monitor and respond to changes in tariff classifications, as outlined in section 269SD(2), by revoking and replacing TCOs accordingly. The new TCO must be issued from the effective date of the revocation, and the changes are made to maintain the integrity and accuracy of the tariff system.
Failing to comply with the provisions of the Customs Act 1901, particularly those outlined in the Tariff Concessions Revocation Instrument, can lead to significant consequences. While the explanatory statement does not explicitly list penalties, breaches of the Act could result in fines or other legal repercussions as stipulated by the general provisions of the Customs Act and related legislation. The accuracy and timeliness of tariff classifications are critical to avoid non-compliance, which could incur additional costs and legal challenges for the involved parties.