EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 145/2007
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 145/2007 was made on 8 August 2007. It revokes TCO 0602225. 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.145/2007 revokes 0602225 on 8 August 2007,
with the Revocation date of effect as from 11 January 2006
Overview
The Tariff Concessions Revocation Instrument 145/2007, enacted on 8 August 2007, is a legislative instrument made under the Customs Act 1901. This instrument revokes Tariff Concession Order (TCO) 0602225, which had previously provided a lower rate of customs duty for certain goods. The revocation was necessary due to a change in tariff classification, as outlined in the Customs Tariff Act 1995, which meant that the goods in question were no longer eligible for the tariff concession from 11 January 2006. The Chief Executive Officer of Customs made this order to ensure compliance with the current tariff regulations, and the revocation came into effect on the date the new tariff classification applied.
The Instrument was created without consultation as it was deemed a minor, machinery-related change that did not significantly alter existing arrangements. The revocation order and the subsequent new TCO were made effective from the day the old TCO came into force or a later date, as specified in the Customs Act 1901. This legislative action aligns with the policy objective of maintaining accurate and current tariff concessions in line with amendments to the Customs Tariff Act 1995 and other relevant factors.
Scope and Application
The Tariff Concessions Revocation Instrument 145/2007 operates under the Customs Act 1901 and applies to the revocation of Tariff Concession Orders (TCOs) concerning specific goods. This instrument is pertinent to entities and individuals who are involved in the import or export of goods subject to these tariff concessions, and it affects the customs duty rates applicable to those goods. The scope of the Act extends to the entire Commonwealth of Australia, ensuring uniform application of tariff regulations across the country. The Instrument specifically revokes TCO 0602225, which involved goods classified under tariff classification 8422.40.90, and it mandates a new TCO to be issued with effect from the date of revocation, ensuring that the applicable tariff classifications remain accurate and up-to-date. The revocation takes effect from 11 January 2006, with the Instrument itself being made on 8 August 2007. This revocation and subsequent new order are made possible under sections 269C, 269P, and 269SD of the Customs Act 1901, which provide the legal basis for the creation and amendment of TCOs. The Instrument does not outline specific exclusions or exemptions but operates within the broader framework of the Customs Act, which governs the entire tariff concession process.
Key Provisions
The Tariff Concessions Revocation Instrument 145/2007 operates under the Customs Act 1901, specifically within the framework of Tariff Concession Orders (TCOs) as outlined in sections 269C and 269P. Section 269SD(2) of the Act mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if the tariff classification specified in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a decision by a court or the Administrative Appeals Tribunal, or advice from an officer of Customs. This revocation takes effect from the day the tariff classification ceased to apply to the goods. Additionally, the CEO must issue a new TCO for the goods, effective from the date of the revocation.
Under this Act, the CEO is tasked with ensuring that the appropriate tariff classification is applied to the goods. This involves monitoring and reviewing TCOs regularly to ensure compliance with current tariff laws. The CEO must act swiftly upon identifying any discrepancies in the tariff classification as per the requirements of section 269SD(2). The revocation and subsequent issuance of a new TCO are automatic once the CEO is satisfied that the conditions for revocation are met.
Breach of the provisions outlined in the Tariff Concessions Revocation Instrument 145/2007 could result in significant consequences. Although the Explanatory Statement does not explicitly detail specific offences or penalties for non-compliance with the revocation of a TCO, the Customs Act 1901 generally imposes penalties for non-compliance with its provisions. These can include fines and, in severe cases, imprisonment. The precise penalties would depend on the specific nature and extent of the breach, as well as any additional regulations or guidelines provided by the Customs Act.
The Tariff Concessions Revocation Instrument 145/2007 is designed to ensure that tariff classifications remain accurate and up-to-date, thereby maintaining the integrity of the customs duty system. By revoking outdated TCOs and issuing new ones, the Act ensures that the correct rates of customs duty are applied to imported goods, reflecting current tariff laws and decisions. This proactive approach helps in preventing any potential misuse or evasion of customs duties.