EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 139/2007
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 139/2007 was made on 8 August 2007. It revokes TCO 8906504. The tariff classification 8422.40.90 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.139/2007 revokes 8906504 on 8 August 2007,
with the Revocation date of effect as from 28 June 2004
Overview
The Customs Act 1901, enacted by the Australian Parliament, facilitates the application of lower customs duty rates for certain goods through Tariff Concession Orders (TCOs). These concessions are intended to support industries by reducing the cost of imported goods, provided that the goods are not domestically produced. The Tariff Concessions Revocation Instrument 139/2007, created to address situations where tariff classifications change or are otherwise invalidated, revokes TCO 8906504, effective from 28 June 2004. This revocation was necessitated by an amendment to the Customs Tariff Act 1995 or a court decision, ensuring the tariff classification applied to the goods remains accurate. The instrument was made on 8 August 2007, and no consultation was deemed necessary as the change was of a minor, machinery nature. The revocation and subsequent re-application of the TCO ensure compliance with the Customs Act, while also maintaining the integrity of the tariff system.
Scope and Application
The Tariff Concessions Revocation Instrument 139/2007 under the Customs Act 1901 applies to the revocation of Tariff Concession Order 8906504, which pertains to the tariff classification of specific goods. The instrument is enacted by the Chief Executive Officer of Customs and is effective from the date the tariff classification ceased to apply to the goods, specifically from 28 June 2004. This revocation is necessitated by changes in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from an officer of Customs, indicating that the tariff classification no longer applies. The new Tariff Concession Order takes effect from the date of revocation. The instrument operates within the Commonwealth jurisdiction, affecting entities and individuals involved in the import or export of the goods in question. No consultation was undertaken due to the minor and machinery nature of the change, which does not substantially alter existing arrangements. The instrument also explicitly states that it operates despite certain retrospective prohibitions under the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 139/2007 (Instrument 139) relate to the revocation of Tariff Concession Order (TCO) 8906504 and the creation of a new TCO in its place. Section 269SD(2) of the Customs Act 1901 mandates that if the Chief Executive Officer of Customs (CEO) determines that the tariff classification stated in a TCO is no longer applicable due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. Specifically, Instrument 139 revokes TCO 8906504, which had a tariff classification of 8422.40.90 with a free rate of duty. The revocation takes effect from 28 June 2004, the date when the tariff classification ceased to apply, and the new TCO comes into force from the revocation date.
The Instrument imposes obligations on the CEO of Customs to ensure that the tariff classifications in TCOs remain accurate and up-to-date. Under section 269SD(2) of the Customs Act 1901, the CEO must carefully review and assess the relevance of tariff classifications in existing TCOs in light of changes in legislation, court decisions, or advice from Customs officers. The CEO must then make the necessary orders to revoke outdated TCOs and issue new ones with correct tariff classifications. This ensures that the customs duty rates applied to goods remain consistent with the current tariff regulations.
Breaches of the provisions outlined in the Customs Act 1901 and the Tariff Concessions Revocation Instrument 139/2007 can lead to various civil and criminal consequences. If the CEO fails to revoke an outdated TCO and issue a new one, the applicable customs duties may not be correctly assessed, potentially leading to financial losses for the government and unfair advantages for certain importers. While the explanatory statement does not detail specific penalties, breaches of the Customs Act 1901 can result in significant fines and, in severe cases, imprisonment. The precise penalties depend on the nature and severity of the breach, with maximum penalties often stipulated in the Act or related regulations.