EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 14/2005
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 14/2005 was made on 12 July 2005. It revokes TCO 0502991 and makes TCO 0508133. The tariff classification has been changed from 8418.69.00 to 8418.50.00 because 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. 14/2005 revoked 0502991 and made new TCO 0508133 on 12 July 2005.
Overview
The Tariff Concessions Revocation Instrument 14/2005, enacted on 12 July 2005, was introduced to address a specific issue identified within the Customs Act 1901. This instrument was developed by the Chief Executive Officer of Customs to revoke a particular Tariff Concession Order (TCO) and issue a new one in response to a change in tariff classification. The Tariff Concession Orders scheme under Part XVA of the Customs Act 1901 provides for the application of lower rates of customs duty to goods specified in a TCO, subject to certain core criteria. This instrument reflects the need for adjustments to the tariff classification as necessitated by amendments to the Customs Tariff Act 1995 or decisions from relevant tribunals or authorities. The objective of this legislative instrument is to ensure that the tariff classification accurately reflects the current status of the goods in question, thereby maintaining the integrity and effectiveness of the tariff concession scheme.
The enactment of the Tariff Concessions Revocation Instrument 14/2005 by the Chief Executive Officer of Customs was conducted under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. This action was taken in accordance with the statutory requirements that mandate the revocation of a TCO when the specified tariff classification no longer applies to the goods. The revocation and subsequent issuance of a new TCO aim to ensure that the concessions provided under the Customs Act are correctly aligned with the current tariff classifications, thereby preventing any potential misuse or discrepancies in duty applications. The instrument's commencement is governed by the provisions of subsection 269SD(2), which stipulates that the revocation and new TCO take effect from the day when the tariff classification change became applicable.
Scope and Application
The Tariff Concessions Revocation Instrument 14/2005 applies to the revocation and replacement of Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, this instrument addresses the revocation of TCO 0502991 and the creation of new TCO 0508133, following a change in tariff classification from 8418.69.00 to 8418.50.00. The instrument is issued under the authority of the Customs Act 1901, which allows the Chief Executive Officer of Customs to make and revoke TCOs. The Act applies to goods subject to these orders, and the revocation and creation of new orders are intended to ensure that the correct tariff classification is applied in accordance with the Customs Tariff Act 1995. The geographic reach of this instrument is national, as it pertains to customs duties applicable across Australia. The instrument took effect from the day the tariff classification change was implemented, aligning with the provisions of the Customs Act 1901, and operates despite any prohibitions on retrospective legislative instruments as outlined in the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 14/2005 are sections 269C, 269P, and 269SD of the Customs Act 1901. Section 269C allows for the making of Tariff Concession Orders (TCOs) when no substitutable goods are produced in Australia. Section 269P establishes the conditions under which the Chief Executive Officer of Customs (CEO) may revoke a TCO. Section 269SD specifically mandates the revocation of a TCO if the tariff classification no longer applies to the goods due to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. This section also requires the CEO to issue a new TCO with the updated classification.
The Tariff Concessions Revocation Instrument imposes several obligations on the parties and entities it governs. The CEO of Customs must review the tariff classification of goods subject to a TCO and ensure that it remains accurate. If the classification changes, the CEO is required to revoke the existing TCO and issue a new one that reflects the updated tariff classification. This process ensures that the correct duty rates are applied to imported goods. Furthermore, the CEO must consider any amendments to the Customs Tariff Act 1995, court decisions from the Administrative Appeals Tribunal, and written advice from Customs officers when determining whether a TCO needs to be revoked or amended.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument can result in both civil and criminal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of the Customs Act can lead to substantial fines and, in some cases, imprisonment. For instance, knowingly or negligently making a false statement to obtain a tariff concession could result in penalties under section 269C of the Act, which includes fines and imprisonment for serious offences. The maximum penalties depend on the nature and severity of the breach, but they can be significant, particularly for repeat or egregious violations. Compliance with these provisions is crucial to avoid potential legal repercussions.