EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 142/2007
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 142/2007 was made on 8 August 2007. It revokes TCO 0109321. 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.142/2007 revokes 0109321 on 8 August 2007,
with the Revocation date of effect as from 28 June 2004
Overview
The Customs Act 1901 was enacted by the Australian Parliament to provide a framework for the regulation of customs and excise, including the administration of tariffs and concessions on imported goods. The Act allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which provide lower rates of customs duty for specific goods. The Tariff Concessions Revocation Instrument 142/2007, made on 8 August 2007, is an administrative instrument under the Customs Act 1901 designed to revoke a particular Tariff Concession Order (TCO 0109321) that had been in effect since 28 June 2004. This revocation was necessitated due to changes in tariff classification that rendered the original order obsolete. The instrument was enacted without consultation as it was considered to be of minor or machinery nature and did not substantially alter existing arrangements. The revocation came into effect from the date the original tariff classification ceased to apply to the goods, aligning with the provisions outlined in the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 142/2007 applies to the revocation and amendment of a specific Tariff Concession Order (TCO) under the Customs Act 1901. This instrument pertains to TCO 0109321, which is revoked with effect from 28 June 2004. The revocation is necessitated by a change in tariff classification, as outlined in section 269SD(2) of the Customs Act 1901, which mandates the revocation of a TCO if its stated tariff classification no longer applies to the relevant goods. The instrument is made under the authority provided by sections 269C and 269P of the Act, ensuring that the conditions for tariff concessions are strictly adhered to and adjusted as necessary to maintain the integrity of the tariff system. The geographic reach of this Act is national, as it pertains to customs duties applicable across Australia. The instrument does not specify any exclusions or exemptions and is effective from the date it was made, which is 8 August 2007. The Act extends its application through subordinate instruments, which are used to address specific changes in tariff classifications or court decisions impacting the tariff concessions.
Key Provisions
The Tariff Concessions Revocation Instrument 142/2007, as outlined in the Customs Act 1901, primarily focuses on the revocation of Tariff Concession Orders (TCOs). Section 269SD(2) of the Act mandates that if the Chief Executive Officer of Customs (CEO) determines that the tariff classification mentioned in a TCO no longer applies to the goods due to amendments in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer, the CEO must revoke the TCO and issue a new one. Specifically, this instrument revokes TCO 0109321, effective from 28 June 2004, and it came into effect on 8 August 2007. This change is a result of the tariff classification 8422.40.90 being adjusted to a free rate of duty.
Under this legislation, the CEO is obligated to carefully monitor tariff classifications and ensure they remain accurate and applicable to the goods in question. When the CEO is satisfied that a tariff classification no longer applies, they must revoke the existing TCO and issue a new one that reflects the current tariff classification. This ensures that the appropriate duty rates are applied to the goods, maintaining the integrity of the customs duty system.
Breaching the requirements of the Customs Act 1901 can lead to various civil and criminal consequences. For instance, if a TCO is incorrectly applied or not revoked when necessary, it could result in improper duty payments or exemptions. Such breaches can lead to financial penalties, investigations by customs authorities, and potential legal action against the offending party. The exact penalties can vary, but they may include fines and other sanctions as prescribed by the relevant sections of the Customs Act. These provisions are crucial in ensuring compliance with customs regulations and maintaining the fairness and efficiency of the customs duty system.