Overview

The Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the regulation of customs and excise, including the establishment of tariff concession orders (TCOs). These orders allow for a reduced rate of customs duty on certain goods, provided they meet specific criteria. The Tariff Concessions Revocation Instrument 140/2011, issued on 28 July 2011, addresses the issue of TCOs that have not been utilised within a two-year period. In accordance with section 269SD(1A) of the Customs Act, the Chief Executive Officer of Customs has the authority to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty during the preceding two years. This revocation is aimed at ensuring that tariff concessions are applied effectively and are not granted to goods that are not being imported or produced within Australia. The instrument does not require consultation as its implementation will not affect business practices.

Scope and Application

The Customs Act 1901 provides for the establishment and revocation of Tariff Concession Orders (TCOs) through which lower rates of customs duty are applied to certain goods. Under the Act, a TCO is made if the application meets specific criteria, notably if no substitutable goods are produced in Australia at the time of application. The CEO of Customs has the authority to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty for two consecutive years. This mechanism is intended to ensure that tariff concessions are only applied where there is an ongoing need and benefit. The Tariff Concessions Revocation Instrument No. 140/2011, made on 28 July 2011, revoked TCO 0913734 due to its inactivity over the preceding two years. The revocation took effect from the day the CEO became satisfied of the TCO's inactivity, consistent with the provisions of the Act. Notably, the revocation process is exempt from the retrospective legislative constraints outlined in the Legislative Instruments Act 2003.

Key Provisions

The Tariff Concessions Revocation Instrument No. 140/2011 (sections 269C and 269P) revokes Tariff Concession Order (TCO) 0913734 under the Customs Act 1901. This order was made by the Chief Executive Officer (CEO) of Customs, who found that the TCO had not been quoted in any import entry to secure a concessional rate of duty in the two years preceding the revocation date. This means that the special lower rate of customs duty that applied to the goods specified in TCO 0913734 is no longer in effect. The Act imposes obligations on applicants to ensure that their TCO applications meet the core criteria, primarily that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The CEO, on the other hand, must assess the applications and make a TCO if the criteria are met. Further, the CEO has the authority to revoke a TCO if satisfied that it is no longer required, based on the usage of the TCO over a two-year period. Failure to comply with the provisions of the Customs Act 1901, including the misuse of TCOs, can lead to various penalties. The Act does not explicitly state the penalties for breaching the TCO provisions, but breaches of customs laws generally can result in fines and imprisonment. The severity of the penalties depends on the nature and extent of the breach. It is important for parties governed by the Act to adhere to its requirements to avoid facing legal consequences.