EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 140/2007
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 140/2007 was made on 8 August 2007. It revokes TCO 9105832. The tariff classification 8422.40.90 has a free rate of duty.
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.140/2007 revokes 9105832 on 8 August 2007,
with the Revocation date of effect as from 28 June 2004
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for managing tariff concessions through Tariff Concession Orders (TCOs). The Act allows the Chief Executive Officer of Customs to make or revoke TCOs, which apply lower rates of customs duty to certain goods if no substitutable goods are produced in Australia. The Tariff Concessions Revocation Instrument 140/2007, issued on 8 August 2007, revokes TCO 9105832 due to a change in tariff classification, specifically the application of tariff classification 8422.40.90, which has a free rate of duty. This revocation, effective from 28 June 2004, ensures compliance with the Customs Act and the Customs Tariff Act 1995. The revocation was made without consultation as it was deemed a minor or machinery change that did not substantially alter existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 140/2007, made under the Customs Act 1901, pertains specifically to the revocation of Tariff Concession Order (TCO) 9105832. This instrument applies to the particular goods affected by the revoked TCO and operates within the scope of the Customs Act 1901, impacting those entities and individuals involved in the importation of the specified goods. The revocation takes effect from 28 June 2004, and the instrument was enacted on 8 August 2007. The geographic reach of this legislation is national, as it concerns the application of customs duties across Australia. The revocation is triggered by changes in tariff classifications or decisions by relevant authorities, ensuring the application of the most current tariff rates. The instrument does not specify exclusions or exemptions, nor does it set specific thresholds; its application is determined by the criteria outlined in the Customs Act 1901. The instrument also notes that no consultation was undertaken due to the minor and machinery nature of the changes, and it operates despite provisions in the Legislative Instruments Act 2003 that generally prohibit retrospective legislative instruments.
Key Provisions
The Tariff Concessions Revocation Instrument 140/2007 (the Instrument) under the Customs Act 1901, specifically addresses the revocation of Tariff Concession Order (TCO) 9105832. This order was revoked due to a change in tariff classification, as outlined in sections 269C and 269P (subsection 269SD(2)) of the Act. The revocation took effect on 8 August 2007, and the new TCO was implemented from the date of the revocation. This was necessary because the tariff classification 8422.40.90, which had a free rate of duty, was no longer applicable to the goods subject to the TCO from a particular date, as determined by the Chief Executive Officer of Customs (CEO).
The obligations imposed by the Instrument on the parties involved are primarily centred around the compliance with the new tariff classification. The CEO of Customs must ensure that the new TCO reflects the correct tariff classification for the goods in question. Importers and exporters of the goods affected must now comply with the new tariff classification and any associated duties or regulations. The Instrument mandates that these changes must be implemented from the date specified in the revocation order, which can either be the date the original TCO came into force or a later date as determined by the CEO.
Failure to comply with the provisions of the Instrument could result in various civil or criminal consequences. While the explanatory statement does not specify detailed penalties, breaches of the Customs Act 1901 can generally result in significant fines and potential prosecution. The maximum penalties for customs-related offences can vary widely depending on the severity of the breach, with potential fines reaching up to several thousand dollars and imprisonment for more serious offences. The specifics of penalties would be governed by the broader Customs Act and any applicable regulations or subsidiary legislation.