Overview

The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the imposition and management of customs duties on imported goods. Part XVA of the Act provides for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders allow for reduced rates of customs duty on specified goods under certain conditions. The Tariff Concessions Revocation Instrument 139/2011 was introduced to address the specific issue of unused TCOs that had not been applied in import entries for two years. This instrument was enacted to ensure the efficient administration of the customs duty regime by revoking TCOs that are no longer in use, thereby maintaining the relevance and effectiveness of the tariff concession scheme. The instrument was made on 28 July 2011 and took effect from the date the CEO became satisfied that the particular TCO had not been utilized in the preceding two years.

Scope and Application

The Tariff Concessions Revocation Instrument 139/2011 operates under the authority of the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs). This instrument applies to the TCO 0913733, which has been revoked by the Chief Executive Officer of Customs (CEO) due to inactivity over the preceding two years. The revocation is based on section 269SD(1A) of the Act, which empowers the CEO to cancel a TCO if it has not been quoted in an import entry to secure a concessional rate of duty in the past two years. The instrument thus applies to any entity or individual who might have relied on this particular TCO for customs duty concessions on imported goods. The geographical scope of this legislation is nationwide, as it pertains to the federal Customs Act. The revocation does not require consultation as it is based on non-utilisation of the TCO, ensuring that its cessation will not adversely impact business operations. The instrument takes effect from the date the CEO is satisfied of the TCO's non-utilisation, and it operates independently of the restrictions imposed by section 12 of the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument No. 139/2011 are subsections 269SD(1A) and 269SD(6) of the Customs Act 1901. Subsection 269SD(1A) provides the authority for the Chief Executive Officer of Customs (the CEO) to revoke a Tariff Concession Order (TCO) if they are satisfied that the TCO has not been used in the preceding two years. Subsection 269SD(6) ensures that the revocation of the TCO has effect despite section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments. The Act imposes obligations on the CEO to monitor the use of TCOs and to revoke those that have not been utilised in the preceding two years. This requirement ensures that tariff concessions are only applied when they are actively being used to benefit importers. The CEO must be satisfied on any day that the TCO is no longer required for it to be revoked, and this satisfaction must be based on the TCO not being quoted in an import entry to secure a concessional rate of duty within the preceding two years. The revocation of a TCO under this Instrument does not impose any direct obligations on the parties or entities it governs, as the primary obligation lies with the CEO to monitor and act on the use of TCOs. However, businesses and importers who previously relied on a revoked TCO must now seek alternative tariff concessions or pay the standard rate of duty. There are no specific offences, penalties, or civil/criminal consequences mentioned for the revocation of a TCO under this Instrument. The primary consequence is the loss of the concessional rate of duty for the goods subject to the revoked TCO, which may affect the cost of importing those goods into Australia.