EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 148/2007
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 148/2007 was made on 30 August 2007. It revokes TCO 0509430 and makes TCO 0713589. The tariff classification has been changed from 3401.19.00 to 3402.20.00 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. 148/2007 revoked 0509430 and made new TCO 0713589 on 30 August 2007, with the Revocation date of effect as from 14 July 2005
Overview
The Tariff Concessions Revocation Instrument 148/2007, made on 30 August 2007 under the Customs Act 1901, was introduced to address the need for tariff classification adjustments that arise from amendments to the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from Customs officers. The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the regulation of customs duties and other charges, including the ability to issue and revoke Tariff Concession Orders (TCOs) through the Chief Executive Officer of Customs (CEO). This instrument revokes TCO 0509430 and issues a new TCO 0713589, reflecting a change in tariff classification from 3401.19.00 to 3402.20.00 due to a tariff classification change. The revocation and issuance of the new TCO are effective from the date the tariff classification ceased to apply to the goods, in accordance with the provisions of the Customs Act. The Instrument was enacted without consultation, as the changes were considered minor and of a machinery nature, not substantially altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 148/2007, operating under the Customs Act 1901, addresses the revocation and creation of Tariff Concession Orders (TCOs) concerning specific goods. This instrument applies to the customs duty rates applicable to particular goods, ensuring that the correct tariff classification is maintained as per the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The revocation of TCO 0509430 and the creation of TCO 0713589 were necessitated by a change in tariff classification from 3401.19.00 to 3402.20.00, effective from 14 July 2005. The instrument operates on a Commonwealth level, affecting all entities and persons involved in the importation of the specified goods. The new TCO came into force on 30 August 2007, with the revocation taking effect from the date the previous tariff classification ceased to apply, as per the legislative provisions. This revocation and creation of TCOs ensure compliance with the Customs Act and the Customs Tariff Act, maintaining accurate and updated tariff classifications for imported goods.
Key Provisions
The Tariff Concessions Revocation Instrument 148/2007, made under the Customs Act 1901, serves to revoke a previous Tariff Concession Order (TCO) and establish a new one. Specifically, section 269SD(2) of the Act mandates that the Chief Executive Officer of Customs (the CEO) must revoke TCO 0509430 and issue a new TCO, numbered 0713589, if certain conditions are met, such as changes in tariff classification or court decisions that render the existing TCO obsolete. This revocation and creation of new TCO are effective from 14 July 2005 and 30 August 2007, respectively.
The Customs Act 1901 imposes several obligations on the CEO regarding the management of tariff concession orders. Primarily, the CEO must ensure that no substitutable goods are being produced in Australia at the time of application for a TCO (section 269C). Additionally, the CEO must monitor changes in tariff classification and court decisions that may necessitate the revocation of existing TCOs and the creation of new ones (section 269SD). The CEO is also required to issue new TCOs that accurately reflect current tariff classifications and legal interpretations.
Breach of the provisions outlined in the Customs Act 1901 can result in significant consequences. While the specific penalties are not detailed in the explanatory statement, breaches of customs laws generally can lead to both civil and criminal penalties. Civil penalties may include fines and compensation for any financial loss incurred due to non-compliance. Criminal penalties could involve imprisonment, with the severity of the penalty dependent on the nature and extent of the breach. The Act also provides mechanisms for the CEO to take enforcement actions, such as seizing goods or imposing fines, to ensure compliance with tariff concession regulations.
Under section 269SD(6) of the Act, the revocation and new TCO established by the Tariff Concessions Revocation Instrument 148/2007 have effect despite the prohibitions in section 12 of the Legislative Instruments Act 2003, which generally restricts the creation of retrospective legislative instruments. This ensures that the changes in tariff classifications and legal interpretations can be effectively addressed without being hindered by retrospective legislative constraints.