EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 143/2007
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 143/2007 was made on 8 August 2007. It revokes TCO 0109324. 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.143/2007 revokes 0109324 on 8 August 2007,
with the Revocation date of effect as from 28 June 2004
Overview
The Tariff Concessions Revocation Instrument 143/2007, made under the Customs Act 1901, addresses the issue of tariff concession orders that need to be revoked due to changes in tariff classifications. Enacted by the Chief Executive Officer of Customs, the instrument revokes Tariff Concession Order 0109324, effective from 28 June 2004, due to the applicable tariff classification no longer being valid. The revocation ensures that the customs duty rates align with the current tariff classifications, maintaining consistency and fairness within the customs duty scheme. The instrument was made on 8 August 2007 and came into effect from the revocation date, demonstrating the legislative intent to promptly adjust to changes in tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 143/2007, made under the Customs Act 1901, applies to the revocation of a specific Tariff Concession Order (TCO) and the subsequent establishment of a new TCO. This instrument specifically addresses TCO 0109324, which concerned the tariff classification for certain goods. The Act applies to the Chief Executive Officer of Customs (CEO) who has the authority to make and revoke TCOs. The geographic reach of this legislation is national, as it pertains to the application of customs duties across Australia. The revocation of TCO 0109324 is based on the change in tariff classification that no longer applies to the goods in question, necessitating the issuance of a new TCO. The instrument does not specify any exclusions, exemptions, or thresholds but rather focuses on the administrative process of adjusting tariff concessions in response to changes in tariff classifications. The commencement of the revocation is effective from 28 June 2004, with the revocation order taking effect on 8 August 2007.
Key Provisions
The Tariff Concessions Revocation Instrument 143/2007 operates under the Customs Act 1901, specifically sections 269C, 269P, and 269SD. The instrument revokes Tariff Concession Order (TCO) 0109324 due to a change in the tariff classification that now applies a free rate of duty to the relevant goods. This revocation takes effect from 8 August 2007, with the revocation date of effect from 28 June 2004, as stated in section 269SD(2) of the Act. The new TCO, reflecting the updated tariff classification, also becomes effective from the date of revocation.
The Customs Act imposes several obligations on the parties governed by the Tariff Concessions Revocation Instrument 143/2007. The Chief Executive Officer of Customs (CEO) is mandated to make the revocation order and issue a new TCO if certain conditions are met, such as the tariff classification ceasing to apply to the goods due to changes in the Customs Tariff Act 1995 or decisions by courts or tribunals. The CEO must also ensure that the new TCO reflects the correct tariff classification for the goods. These obligations are clearly outlined in section 269SD of the Customs Act, which stipulates the conditions under which a TCO may be revoked and a new one issued.
The Tariff Concessions Revocation Instrument 143/2007 does not explicitly outline specific offences or penalties for breaches of the revocation or the new TCO. However, breaches of the Customs Act generally can lead to substantial penalties. Under section 211 of the Act, penalties for contraventions can include fines of up to $22,200 for individuals and significantly higher amounts for corporations. Additionally, under section 213, individuals can face imprisonment for up to 12 months, and corporations can face penalties of up to $111,000. The severity of the penalties reflects the importance of compliance with customs regulations to ensure the integrity of Australia's tariff system.
The instrument also includes provisions for its commencement, which is detailed in section 269SD(4) of the Customs Act. The revocation and the issuance of the new TCO take effect from the day on which the tariff classification did not apply to the goods, which may be the day the old TCO came into force or a later date. Section 269SD(6) ensures that this process has effect despite section 12 of the Legislative Instruments Act 2003, which generally prohibits the making of certain retrospective legislative instruments. This provision ensures that the revocation and new TCO can proceed without being constrained by retrospective legislative rules.