EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 15/2006
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, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 15/2006 was made on 9 March 2006. It revokes TCO 0516050 and makes TCO 0603486 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.15/2006 revoked 0516050 and made new TCO 0603486 on 9 March 2006.
Overview
The Tariff Concessions Revocation Instrument No 15/2006, enacted on 9 March 2006, is a legislative instrument under the Customs Act 1901. It was introduced to address a specific transcription error in the description of goods subject to Tariff Concession Orders (TCOs). The Customs Act 1901 provides a scheme whereby the Chief Executive Officer of Customs may make and revoke TCOs, which are orders that provide lower rates of customs duty for specified goods. The Instrument was made by the CEO under the authority of subsection 269SD(2) of the Customs Act 1901, which allows for the correction of errors in TCOs. The policy objective is to ensure that TCOs accurately reflect the intended tariff classifications and descriptions of goods, thereby maintaining the integrity and fairness of the tariff concession scheme. The Instrument revokes the previous TCO 0516050 and introduces a new TCO 0603486 to correct the identified error.
Scope and Application
The Tariff Concessions Revocation Instrument 15/2006, made under the Customs Act 1901, applies to the revocation of Tariff Concession Order (TCO) 0516050 and the creation of a new TCO 0603486, addressing a transcription error in the description of goods and tariff classification. The instrument is applicable to any entities or persons involved in the importation of the specified goods, thereby affecting the rates of customs duty applicable to those goods. The geographic reach of this Act is national, as it pertains to the Customs Act 1901, which is a Commonwealth Act. The Act does not specify exclusions or exemptions; however, it does allow the Chief Executive Officer of Customs to make or revoke TCOs under certain conditions. This instrument extends the application of the Customs Act 1901 by correcting an error in a previously issued TCO, thereby ensuring the accurate application of customs duty rates to imported goods.
Key Provisions
The Tariff Concessions Revocation Instrument 15/2006 operates under sections 269C, 269P, and 269SD of the Customs Act 1901. The primary function of this instrument is to revoke Tariff Concession Order (TCO) 0516050 and issue a new TCO 0603486, which corrects a transcription error in the description of goods and their tariff classification. This action was necessary because the original TCO contained inaccuracies that could affect the application of customs duty rates. Section 269SD(2) of the Act allows the Chief Executive Officer of Customs (CEO) to make such an order when there is a transcription error in a TCO.
The obligations imposed by this instrument are centred around the accurate description of goods and their tariff classifications in TCOs. The CEO must ensure that any TCO made under the Customs Act 1901 is free from transcription errors. If an error is identified, the CEO is required to revoke the erroneous TCO and issue a corrected TCO. This requirement ensures that the correct rates of customs duty are applied to the relevant goods, maintaining the integrity and fairness of the tariff system.
In terms of potential breaches and consequences, section 269SD(2) of the Customs Act 1901 provides that if a TCO is made in error, the CEO can revoke it and issue a new, corrected TCO. While the Act does not specify penalties for errors in TCOs, the act of revoking and reissuing TCOs to correct errors is a necessary corrective measure to maintain the accuracy and effectiveness of the tariff system. The consequences of not addressing such errors could include the misapplication of customs duties, which could lead to financial losses for the government or unfair advantages for certain importers.