EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 15/2008
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 15/2008 was made on 2 January 2008. It revokes TCO 0714750 and makes TCO 0720452. The tariff classification has been changed from 8477.51.00 to 8477.80.00 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. 15/2008 revoked 0714750 and made new TCO 0720452 on 2 January 2008, with the Revocation date of effect as from 10 September 2007
Overview
The Customs Act 1901, enacted by the Australian Parliament, established a framework for managing customs duties and tariff concessions on imported goods. To address the need for flexibility in tariff classifications due to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers, the Act permits the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders (TCOs). These orders allow for lower customs duties on specified goods, provided no substitutable goods are produced in Australia. The Tariff Concessions Revocation Instrument 15/2008 was introduced to rectify a specific issue arising from a tariff classification change, which necessitated the revocation of an existing TCO and the creation of a new one to ensure the correct application of customs duties. This legislative instrument was enacted without consultation, as the changes were deemed minor and of a machinery nature, not significantly altering existing arrangements. The revocation and new order took effect from the date when the tariff classification ceased to apply to the goods, as specified under the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument No 15/2008, made under the Customs Act 1901, applies to the revocation of Tariff Concession Order (TCO) 0714750 and the creation of new TCO 0720452, effective from 10 September 2007. This instrument is pertinent to the Chief Executive Officer of Customs (CEO) and any entities or individuals involved in the importation of goods affected by the tariff classification changes. The Act provides a framework for the imposition of lower customs duty rates on specific goods that meet the criteria for tariff concessions, which are contingent on the absence of substitutable goods produced in Australia. The geographic and jurisdictional reach of this Act is national, as it pertains to customs regulations across Australia. However, the exclusions or exemptions are not detailed in the explanatory statement, and it is presumed that they align with the general provisions of the Customs Act 1901. The application of this instrument may be extended or restricted through subordinate instruments, but such details are not provided in the explanatory statement. The commencement of the revocation and the new TCO is governed by subsections 269SD(2) and 269SD(4) of the Customs Act 1901, which ensure the order's effect despite the prohibitions under section 12 of the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 15/2008 (2008) under the Customs Act 1901 (the Act) addresses the revocation of a Tariff Concession Order (TCO) and the establishment of a new TCO. Specifically, section 269SD(2) mandates that the Chief Executive Officer (CEO) of Customs must revoke a TCO if the tariff classification stated in the TCO is no longer applicable due to changes in the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or advice from a Customs officer. This revocation was necessitated by a change in tariff classification from 8477.51.00 to 8477.80.00. The new TCO, 0720452, was made effective from the day the old TCO, 0714750, was revoked.
The obligations imposed by this Instrument require the CEO to ensure that the new TCO accurately reflects the current tariff classification and to make any necessary adjustments to the duty rates applicable to the specified goods. This involves a detailed review of the current tariff classifications and an assessment of whether the goods in question still meet the criteria for the lower duty rate. The CEO must also ensure that any new TCO is made public and is in compliance with the Customs Act 1901, including the necessary legislative and administrative procedures.
The consequences of non-compliance with the requirements of the Tariff Concessions Revocation Instrument 15/2008 can be significant. Under section 269SD(6), the CEO is empowered to enforce the provisions of the Act, including the revocation of a TCO. Failure to adhere to the new tariff classifications can result in the imposition of higher customs duties on the affected goods, which could lead to increased costs for importers and potential financial penalties. Additionally, persistent non-compliance could result in legal action against the parties involved, including fines and other civil or criminal penalties as stipulated in the Customs Act 1901. The maximum penalties for breaches of customs laws can be severe, depending on the nature and extent of the infringement.