EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 14/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 14/2012 was made on
30 November 2011. This instrument revokes 0708942 of classification 7615.19.00 and makes new TCO 1132500 of classification 7615.10.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 14/2012 revokes TCO 0708942 and makes new TCO 1132500 in its place, with effect from 1 January 2012.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, establishes a framework under which Tariff Concession Orders (TCOs) can be created and revoked, allowing for lower customs duty rates on specified goods. The Tariff Concessions Revocation Instrument 14/2012 was introduced to address the issue of outdated tariff classifications that resulted from amendments to the Customs Tariff Act 1995. This instrument, made on 30 November 2011 and effective from 1 January 2012, revokes the existing TCO 0708942 and introduces a new TCO 1132500, reflecting the changes made by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The policy objective of this instrument is to ensure that the tariff concessions align with the updated tariff classifications, maintaining the integrity of the customs duty scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 14/2012, made under the Customs Act 1901, applies to the revocation and replacement of Tariff Concession Orders (TCOs) in response to amendments in the Customs Tariff Act 1995. Specifically, it targets entities and individuals who are affected by the changes in tariff classifications, ensuring that the correct rates of customs duty are applied to imported goods. The instrument revokes the TCO 0708942 and establishes a new TCO 1132500, reflecting the updates in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012. This change applies to the Commonwealth of Australia, impacting industries and transactions involving the importation of goods subject to the revised tariff classifications. The instrument's application is limited to the specified goods and does not extend to other areas of the Customs Act 1901. The revocation and issuance of new TCOs are governed by the specific provisions of the Customs Act 1901 and the Customs Tariff Act 1995, with no consultation required due to the minor and machinery nature of the changes.
Key Provisions
The Tariff Concessions Revocation Instrument 14/2012 operates under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901. These sections provide the framework for making and revoking Tariff Concession Orders (TCOs). Specifically, section 269C outlines the process for creating a TCO if the application meets the core criteria, while section 269P allows the Chief Executive Officer of Customs (the CEO) to revoke a TCO. Section 269SD(2A) mandates that if the CEO is satisfied that a tariff classification will no longer apply to goods due to changes in the Customs Tariff Act 1995, they must revoke the existing TCO and issue a new one. This particular instrument revokes TCO 0708942 and replaces it with TCO 1132500, effective from 1 January 2012.
The Act imposes several obligations on the CEO regarding the administration and revocation of TCOs. Primarily, the CEO must ensure that a TCO is made only if no substitutable goods are produced in Australia (section 269C). Additionally, if amendments to the Customs Tariff Act 1995 affect the tariff classification of goods covered by an existing TCO, the CEO must revoke the TCO and issue a new one to reflect the updated classification (section 269SD(2A)). This ensures that the duty rates applied to the goods align with the current tariff schedule.
Failure to comply with the provisions of the Customs Act 1901 and the associated instruments can lead to legal consequences. While the explanatory statement does not explicitly detail penalties, it is understood that breaches of customs regulations can result in substantial fines or imprisonment under other sections of the Act. For instance, section 223D of the Customs Act 1901 provides for penalties including fines up to 10,000 penalty units or imprisonment for up to 10 years for serious offences related to customs duty evasion or fraudulent activities. Similarly, non-compliance with TCOs could potentially incur penalties under these or related sections of the Act, depending on the specific nature of the breach.