EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 14/2008
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 14/2008 was made on 2 January 2008. It revokes TCO 0619312 and makes TCO 0800015. The tariff classification has been changed from 8421.29.00 to 8421.21.90 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. 14/2008 revoked 0619312 and made new TCO 0800015 on 2 January 2008, with the Revocation date of effect as from 4 December 2006
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the administration of customs and excise duties. The Act allows for the creation and revocation of Tariff Concession Orders (TCOs) through the Chief Executive Officer of Customs. The Tariff Concessions Revocation Instrument 14/2008, made on 2 January 2008, addresses the issue of tariff classification changes that necessitate the revocation of existing TCOs and the creation of new ones. This instrument revokes TCO 0619312 and establishes TCO 0800015, reflecting a change in tariff classification from 8421.29.00 to 8421.21.90 due to a modification in the Customs Tariff Act 1995. The policy objective of this instrument is to ensure the accuracy and relevance of tariff classifications for imported goods, thereby maintaining the integrity of the customs duty system. The instrument came into effect from 4 December 2006, in accordance with the provisions of the Customs Act.
Scope and Application
The Tariff Concessions Revocation Instrument 14/2008 operates under the Customs Act 1901, applying to entities or individuals engaged in the importation of goods subject to specific tariff concession orders. It directly impacts those who rely on these concessions for the purposes of duty calculation, ensuring that they comply with updated tariff classifications. The instrument revokes an existing Tariff Concession Order (TCO) and establishes a new one, reflecting changes in tariff classifications due to amendments in the Customs Tariff Act 1995 or judicial decisions. This change affects the duty rates on specific goods, ensuring that they remain consistent with the current tariff schedule. The instrument has a national reach within Australia, applying across all states and territories. There are no stated exclusions or exemptions, but the scope is limited to the specific goods affected by the tariff classification change. The application of the instrument can be further extended or modified through subordinate instruments, which can be issued by the Chief Executive Officer of Customs under the authority granted by the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 14/2008 (the Instrument) revokes Tariff Concession Order (TCO) 0619312 and replaces it with TCO 0800015. This was necessitated by a change in the tariff classification, specifically from 8421.29.00 to 8421.21.90. The operative sections of the Customs Act 1901 (the Act) relevant here are sections 269C, 269P, and 269SD, which govern the making and revocation of TCOs. Under section 269SD(2), the Chief Executive Officer of Customs (the CEO) must revoke a TCO and create a new one if a particular tariff classification no longer applies due to amendments in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The Instrument revokes TCO 0619312 and creates TCO 0800015 with effect from 2 January 2008, although the revocation date is set as 4 December 2006.
The obligations imposed by the Instrument on parties and entities governed by it include adherence to the new tariff classification under TCO 0800015. This means that any goods previously covered by TCO 0619312 now need to be classified and taxed under the new TCO. The CEO, as the authority responsible for making and revoking TCOs, must ensure that all relevant changes are properly implemented and communicated to stakeholders. The Instrument also ensures that the new TCO has effect from the revocation date, which is critical for maintaining continuity in customs duty applications.
Breaches of the provisions set out in the Instrument can lead to civil and criminal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of customs regulations generally can result in fines, penalties, or even imprisonment, depending on the severity and intent of the breach. The maximum penalties for such breaches can vary widely but often include significant financial penalties and, in more severe cases, criminal charges. It is important for entities involved in importing or exporting goods to comply strictly with the new tariff classification under TCO 0800015 to avoid any potential legal repercussions.