EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 147/2007
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 147/2007 was made on 22 August 2007. It revokes TCO 0706384 and makes TCO 0712982. The tariff classification has been changed from 3920.59.00 to 3921.90.90 because of a tariff classification change.
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. 147/2007 revoked 0706384 and made new TCO 0712982 on 22 August 2007, with the Revocation date of effect as from 2 May 2007
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be made and revoked by the Chief Executive Officer of Customs. The objective of this legislative scheme is to ensure that a lower rate of customs duty applies to goods that are the subject of a TCO, provided that no substitutable goods are produced in Australia in the ordinary course of business. The Tariff Concessions Revocation Instrument 147/2007, made on 22 August 2007, revokes TCO 0706384 and introduces TCO 0712982. This change was necessitated by an alteration in the tariff classification from 3920.59.00 to 3921.90.90, which resulted from an amendment to the Customs Tariff Act 1995. The revocation and subsequent TCO came into effect on the day the tariff classification ceased to apply to the goods, as stipulated by the provisions of the Customs Act. The enactment of this instrument did not require consultation due to its minor and machinery nature, and it operates notwithstanding any prohibition on retrospective legislative instruments under the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 147/2007 is an instrument made under the Customs Act 1901, which applies to the revocation of Tariff Concession Orders (TCOs) concerning specific goods. This instrument is applicable to the goods that were the subject of TCO 0706384 and, consequently, now fall under TCO 0712982, following the change in tariff classification. The application of this Act pertains to the alteration of customs duty rates for these specific goods, reflecting the updated tariff classification, and is in effect from 2 May 2007, the day when the previous tariff classification ceased to apply. The revocation and subsequent issuance of a new TCO are mandated by the Customs Act 1901 when certain conditions are met, such as changes in tariff classifications or court decisions. Notably, the instrument was made on 22 August 2007, and it operates nationally, aligning with the overarching provisions of the Customs Act, which applies throughout the Commonwealth of Australia. The instrument operates within the confines of the Customs Act and does not require any additional consultation beyond the statutory provisions due to its minor nature and alignment with existing legislative frameworks.
Key Provisions
The Tariff Concessions Revocation Instrument 147/2007 (No. 147/2007) operates under sections 269C, 269P, and 269SD of the Customs Act 1901, allowing the Chief Executive Officer of Customs to revoke and re-establish Tariff Concession Orders (TCOs). Specifically, section 269C enables the CEO to make TCOs if the application for tariff concessions meets the core criteria, such as the absence of substitutable goods produced in Australia at the time of application. Section 269P mandates the imposition of lower customs duty rates on goods covered by a TCO. Section 269SD(2) requires the CEO to revoke a TCO and issue a new one if the tariff classification stated in the original TCO no longer applies due to changes in the Customs Tariff Act 1995, court decisions, or Customs advice. In this case, TCO 0706384 was revoked and replaced with TCO 0712982 due to a tariff classification change, effective from 2 May 2007.
Under this legislation, the CEO of Customs has specific obligations to ensure that the tariff classifications in TCOs accurately reflect the current customs tariff. If it is determined that a TCO's tariff classification is no longer applicable, the CEO must revoke the existing TCO and issue a new one with the correct classification. This process ensures that the benefits of tariff concessions are appropriately aligned with the prevailing tariff classifications, maintaining the integrity and fairness of the customs duty system. The CEO must also consider any changes to the Customs Tariff Act 1995, judicial decisions, or advice from Customs officers when reviewing and adjusting TCOs.
Failure to comply with the provisions of the Customs Act 1901, including the accurate application of tariff classifications, may result in legal consequences for the parties involved. While the explanatory statement does not detail specific penalties for non-compliance, breaches of the Customs Act can lead to civil or criminal penalties. In general, the Act allows for fines and imprisonment for breaches related to customs duties and tariff concessions. The specific penalties depend on the nature and severity of the breach, as well as any applicable regulations or subsidiary legislation.
The Tariff Concessions Revocation Instrument 147/2007 was made effective from 22 August 2007, with the revocation of TCO 0706384 and the issuance of TCO 0712982 effective from 2 May 2007. This change was implemented without consultation, as it was deemed minor and of a machinery nature, not substantially altering existing arrangements. The instrument operates under the authority granted by section 269SD of the Customs Act 1901 and ensures that the tariff classifications in TCOs remain current and accurate, thereby maintaining the effectiveness and fairness of the tariff concession scheme.