EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 15/2005
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 15/2005 was made on 25 July 2005. It revokes TCO 0207096. The tariff classification has been changed from 3926.90.90 to 9403.20.00 meaning that the TCO cannot be remade because goods are on the excluded goods schedule.
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. 15/2005 revokes 0207096 on 25 July 2005.
Overview
The Tariff Concessions Revocation Instrument 15/2005 was enacted to address discrepancies arising from changes in tariff classifications under the Customs Act 1901. This instrument, created by the Chief Executive Officer of Customs, aims to ensure that Tariff Concession Orders (TCOs) accurately reflect the current tariff classification of goods. Specifically, it revokes TCO 0207096 due to a change in the tariff classification from 3926.90.90 to 9403.20.00, which now places the goods on an excluded list, making it impossible to remake the TCO. The revocation is effective from the day the tariff classification change took effect, as per the provisions outlined in subsection 269SD(2) of the Customs Act. The revocation process was streamlined to ensure that it adheres to legislative timelines, despite potential conflicts with retrospective legislative instruments as governed by the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 15/2005 operates within the framework of the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) as defined under Part XVA of the Act. This legislation applies to goods that benefit from a lower rate of customs duty due to the existence of a TCO, and is administered by the Chief Executive Officer of Customs (the CEO). The revocation of TCO 0207096 is triggered by a change in tariff classification from 3926.90.90 to 9403.20.00, which results in the goods now being on the excluded goods schedule, thereby precluding the possibility of remaking the TCO. The revocation is effective from the date the tariff classification ceased to apply to the goods, as per the provisions of subsection 269SD(2) of the Act. The instrument was enacted on 25 July 2005, and while it revokes the existing TCO, it also considers the potential for a new TCO to be issued with modified tariff classifications, though in this case, it is not possible due to the nature of the goods involved. The revocation order is not subject to the retrospective prohibitions outlined in section 12 of the Legislative Instruments Act 2003, as stipulated in subsection 269SD(6).
Key Provisions
The Tariff Concessions Revocation Instrument No 15/2005, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0207096. This revocation is effective from the date of the instrument's creation, which is 25 July 2005. The tariff classification for the goods in question has been changed from 3926.90.90 to 9403.20.00, and as a result, the TCO cannot be remade because the goods are now on the excluded goods schedule. This change in classification is due to an amendment of the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or written advice from an officer of Customs.
The Act imposes certain obligations and requirements on the parties involved. Specifically, under section 269SD(2) of the Customs Act, the Chief Executive Officer of Customs (CEO) must revoke a TCO if the tariff classification stated in the TCO no longer applies to the goods. The CEO is required to make a new TCO if the goods are no longer subject to the changed tariff classification, provided they are not on the excluded goods schedule. The revocation and any subsequent new TCO must take effect from the day the original tariff classification ceased to apply to the goods, as outlined in subsection 269SD(4) of the Act. This ensures that the changes in tariff classifications are accurately reflected in the applicable TCOs.
The Tariff Concessions Revocation Instrument No 15/2005 also includes provisions for the commencement of the revocation. According to subsection 269SD(2), the revocation of the TCO and the effect of the new TCO are effective from the day the tariff classification no longer applies to the goods. Subsection 269SD(6) further clarifies that this section of the Act has effect despite section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments. This ensures that the revocation and any new TCOs made in accordance with the Customs Act are legally valid and enforceable.
Any breaches of the provisions outlined in the Tariff Concessions Revocation Instrument No 15/2005 may lead to various consequences. The Act does not specify particular offences or penalties for non-compliance with the revocation and new TCO. However, any breach of the Customs Act 1901 or related instruments could potentially result in civil or criminal penalties, depending on the nature and severity of the breach. These penalties could include fines, imprisonment, or other legal repercussions as determined by the relevant authorities. It is essential for all parties involved to adhere to the provisions of the Act and the revocation instrument to avoid any potential legal issues.