EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 14/2009
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 14/2009 was made on 25 August 2008. It revokes TCO 0808291 and makes TCO 0827461. The tariff classification has been changed from 8477.80.00 to 8477.59.00 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. 14/2009 revoked 0808291 and made new TCO 0827461 on 25 August 2008, with the Revocation date of effect as from 15 May 2008
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the administration of customs and excise duties. Part XVA of the Act specifically addresses the creation and revocation of Tariff Concession Orders (TCOs), which offer lower customs duty rates on certain goods, contingent on specific criteria being met. The Tariff Concessions Revocation Instrument 14/2009 was introduced to address a gap identified in the tariff classification for certain goods, which necessitated a change in the duty rates applied. This instrument was made on 25 August 2008, revoking TCO 0808291 and establishing new TCO 0827461, reflecting a change in tariff classification from 8477.80.00 to 8477.59.00. The revocation and creation of these orders were necessary due to changes in the Customs Tariff Act 1995, ensuring that the applicable tariff classifications accurately reflect the current legislative framework.
Scope and Application
The Tariff Concessions Revocation Instrument 14/2009, made under the Customs Act 1901, applies to the revocation and reissuance of Tariff Concession Orders (TCOs) concerning specific goods. This Act pertains to entities and individuals involved in the importation of goods that were subject to the revoked TCO, effectively altering the tariff classification of these goods as of the revocation date. The legislation operates within the Commonwealth jurisdiction, as it is a federal instrument made under the authority of the Customs Act 1901. The instrument revokes TCO 0808291 and issues a new TCO, 0827461, due to a change in tariff classification stemming from an amendment in the Customs Tariff Act 1995. The new TCO took effect from the revocation date, which was 15 May 2008, ensuring that the revised tariff classification applies to the goods from that date. The instrument also notes that no consultation was required as the changes were of a minor or machinery nature and did not substantially alter existing arrangements. The commencement of the revocation and new TCO is governed by subsections 269SD(2) and 269SD(6) of the Customs Act 1901, ensuring compliance with legislative requirements despite any prohibitions in the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 14/2009 (the Instrument) is an order made under sections 269C and 269P of the Customs Act 1901. This Instrument revokes Tariff Concession Order (TCO) 0808291 and establishes a new TCO, 0827461, due to a change in tariff classification (section 269SD). The Instrument was made on 25 August 2008 and came into effect from 15 May 2008.
The Instrument requires the Chief Executive Officer of Customs (the CEO) to revoke TCO 0808291 and establish TCO 0827461, reflecting the change in tariff classification from 8477.80.00 to 8477.59.00. This change is due to an amendment in the Customs Tariff Act 1995, and the new TCO applies from the day of the revocation. This process ensures that the appropriate tariff concessions are applied to the relevant goods as per the updated tariff classification.
The Instrument imposes specific obligations on the CEO, requiring them to carefully monitor tariff classifications and ensure that any changes are promptly reflected in the applicable TCOs. The CEO must be satisfied that the tariff classification has changed and that the appropriate legal criteria are met before revoking an existing TCO and establishing a new one. The CEO must also ensure that these changes are implemented effectively and that the new TCO is communicated to all relevant parties.
The Customs Act 1901 does not specify any particular offences, penalties, or consequences for failing to comply with the requirements of the Instrument. However, failure to adhere to the updated TCOs could result in incorrect customs duty being charged on the affected goods. This could potentially lead to disputes or additional administrative costs for the importers or exporters involved. Ensuring compliance with the new TCO is therefore crucial for avoiding any such issues.