EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 141/2007
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 141/2007 was made on 8 August 2007. It revokes TCO 0109034. 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.141/2007 revokes 0109034 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 the regulation of customs duties and includes mechanisms for the creation and revocation of Tariff Concession Orders (TCOs). The Tariff Concessions Revocation Instrument 141/2007 was introduced to address a specific issue where the tariff classification stated in a TCO no longer applied to the relevant goods due to changes in legislation or court decisions. This instrument, which was made on 8 August 2007, revoked TCO 0109034 with effect from 28 June 2004, ensuring that the applicable tariff classification remained accurate and aligned with current legal and administrative standards. The policy objective behind this revocation was to maintain the integrity of the tariff concession scheme and to ensure that customs duties are applied correctly based on the most current legal classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 141/2007, operating under the Customs Act 1901, specifically targets the revocation of Tariff Concession Order (TCO) 0109034, which had been previously established to provide a lower rate of customs duty on certain goods. This revocation applies to the goods classified under tariff classification 8422.40.90, and it takes effect from 28 June 2004, the date from which the original tariff classification ceased to apply. The revocation was necessitated by an amendment in the Customs Tariff Act 1995 or a decision from the Administrative Appeals Tribunal, prompting the Chief Executive Officer of Customs to reassess the tariff classification of the goods in question. The revocation order, effective from 8 August 2007, adjusts the tariff classification to align with the current legal and administrative framework, ensuring compliance with the legislative intent and the duty rates prescribed by the Customs Act.
Key Provisions
The Tariff Concessions Revocation Instrument 141/2007, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0109034 and introduces a new TCO with effect from 8 August 2007. This instrument addresses changes in tariff classifications as per section 269SD(2) of the Act. The new TCO applies a free rate of duty to the tariff classification 8422.40.90, which replaces the previously applicable classification.
Under the Customs Act, the Chief Executive Officer of Customs (CEO) has the authority to make and revoke TCOs. Section 269C of the Act mandates that a TCO be made if the application meets the core criteria, specifically, if no substitutable goods are produced in Australia on the application's lodging date. Section 269P further outlines the conditions for revoking a TCO, particularly if there is a change in tariff classification due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer.
Entities and parties governed by this Act must adhere to the specified conditions for the application and revocation of TCOs. They are required to ensure that their goods qualify under the criteria for tariff concessions and remain vigilant about any changes in tariff classifications. The CEO must be promptly notified if any changes occur that would affect the tariff classification of the goods subject to a TCO. Additionally, the new TCO must be implemented in compliance with the specified effective dates outlined in section 269SD(4) of the Act, ensuring that the revised duty rates apply correctly.
The Customs Act imposes obligations on entities to accurately classify their goods and to apply the correct duty rates as per the TCOs. Failure to comply with the terms of a TCO, or the revocation of a TCO, may result in legal consequences. Section 269SD(6) of the Act ensures that the provisions for revocation take precedence over section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative changes. Non-compliance with the new TCO or failure to adjust to the revoked classification may result in civil or criminal penalties, as determined by the Act. The maximum penalties for breaches are not explicitly stated in the explanatory statement but typically include fines and potential imprisonment for more severe violations.