EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 149/2007
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 149/2007 was made on 30 August 2007. It revokes TCO 0708638 and makes TCO 0713590. The tariff classification has been changed from 5404.12.00 to 5404.19.00 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. 149/2007 revoked 0708638 and made new TCO 0713590 on 30 August 2007, with the Revocation date of effect as from 6 June 2007
Overview
The Tariff Concessions Revocation Instrument 149/2007 was enacted under the Customs Act 1901, addressing the need to adjust tariff classifications that impact the application of Tariff Concession Orders (TCOs). The instrument was introduced to ensure that the tariff classifications stated in TCOs remain accurate and relevant, particularly in light of amendments to the Customs Tariff Act 1995 or decisions by the Administrative Appeals Tribunal. The Tariff Concessions Revocation Instrument 149/2007 was made by the Chief Executive Officer of Customs and revokes TCO 0708638 while establishing TCO 0713590, reflecting a change in tariff classification from 5404.12.00 to 5404.19.00. The instrument was enacted to maintain the integrity of the tariff concession scheme and ensure that the correct duty rates apply to specified goods. The revocation and creation of new TCOs were effective from the date the previous tariff classification ceased to apply, demonstrating the policy objective to swiftly adapt to changes in tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument No 149/2007 applies to the revocation and subsequent creation of Tariff Concession Orders (TCOs) under Part XVA of the Customs Act 1901. Specifically, it addresses the revocation of TCO 0708638 and the issuance of a new TCO, 0713590, due to changes in tariff classification as outlined in the Customs Tariff Act 1995. This instrument is pertinent to entities and individuals involved in the import of goods affected by the changes in tariff classification, ensuring compliance with the updated classifications and applicable customs duties. The geographic reach of this instrument is national, as it pertains to the administration of customs duties across Australia. There are no exclusions or exemptions specified in the instrument itself; however, the scope of its application is constrained by the conditions set forth in the Customs Act 1901. The commencement of the revocation and the new TCO is effective from the day the tariff classification change came into effect, which in this case is 6 June 2007. The instrument's effect is governed by the Customs Act 1901, notwithstanding any retrospective legislative constraints imposed by the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 149/2007, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0708638 and establishes a new TCO, 0713590, effective from 30 August 2007. This instrument responds to a change in tariff classification from 5404.12.00 to 5404.19.00, necessitating the revocation and replacement of the existing TCO (sections 269C, 269P, 269SD(2)). The revocation date for the old TCO is 6 June 2007, the day from which the tariff classification no longer applied to the goods, and the new TCO takes effect from this revocation date (subsection 269SD(2), (4)). The legislative process allows this change to circumvent the prohibition of retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003 (subsection 269SD(6)).
The obligations imposed by this Act on the parties or entities it governs include the requirement that the Chief Executive Officer of Customs (CEO) ensure that tariff classifications stated in TCOs remain accurate and applicable to the goods in question. This is crucial for maintaining the integrity of the tariff concession scheme. Specifically, if the CEO is satisfied that a tariff classification has ceased to apply due to amendments, court decisions, or written advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one reflecting the correct tariff classification (subsection 269SD(2)). Furthermore, parties subject to these TCOs must be aware of the changes and ensure compliance with the new tariff classifications to avoid any breaches or additional duties.
Failure to comply with the provisions of the Customs Act 1901 and the related TCOs can result in various penalties and legal consequences. For instance, importing goods without the correct tariff classification may lead to the imposition of additional customs duties and interest. In severe cases, such non-compliance might be construed as an offence, leading to criminal charges, fines, or even imprisonment. The exact penalties would depend on the severity of the breach and the specific provisions of the Customs Act, but the overarching intent is to ensure that the tariff concession scheme operates fairly and without abuse.
Additionally, under the Customs Act, entities that fail to adhere to the correct tariff classifications may face civil penalties. These can include financial penalties, recovery of unpaid duty, and interest on the amount owed. The Act provides for enforcement mechanisms, including the power to seize goods that are imported or exported in violation of the tariff provisions. The seriousness of the offence, such as whether it was committed knowingly or negligently, will influence the extent of the penalties imposed. The Act aims to maintain the regulatory framework's effectiveness by deterring non-compliance through these potential consequences.