EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 15/2009
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 15/2009 was made on 21 July 2008. It revokes TCO 0613481 and makes TCO 0817165. The tariff classification has been changed from 8428.39.00 to 8428.33.00 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. 15/2009 revoked 0613481 and made new TCO 0817165 on 21 July 2008, with the Revocation date of effect as from 11 August 2006
Overview
The Customs Act 1901 was enacted to provide for the regulation of the import and export of goods, including the imposition of customs duty. This Act was introduced by the Australian Parliament to address the need for a comprehensive framework governing customs duties and related matters. In particular, Part XVA of the Customs Act 1901 allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). The primary purpose of the Tariff Concessions Revocation Instrument 15/2009 is to address the issue of tariff classification changes, ensuring that TCOs remain aligned with the current tariff classification of goods. The Instrument revokes TCO 0613481 and introduces a new TCO 0817165 due to a change in tariff classification from 8428.39.00 to 8428.33.00, effective from 11 August 2006. The revocation and creation of the new TCO are made in accordance with subsection 269SD(2) of the Customs Act 1901, which mandates that the CEO must revoke a TCO and issue a new one if the tariff classification of the goods changes. The Instrument came into effect on 21 July 2008, and no consultation was undertaken as the changes were deemed minor and of a machinery nature.
Scope and Application
The Tariff Concessions Revocation Instrument 15/2009 pertains to the Customs Act 1901, specifically addressing the revocation and establishment of Tariff Concession Orders (TCOs). The Act applies to individuals and entities that are subject to the tariff concessions set out in TCOs, which relate to the application of lower rates of customs duty on specific goods. The instrument concerns the revocation of TCO 0613481 and the establishment of TCO 0817165, which was necessitated by changes in tariff classification. This instrument operates on a national level, aligning with the Commonwealth's legislative jurisdiction. The revocation and new TCO are effective from specific dates determined by the instrument, and the changes do not require retrospective application, as per the provisions of the Legislative Instruments Act 2003. Notably, the instrument did not undergo consultation due to the minor nature of the changes.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 15/2009 (the Instrument) are sections 269C, 269P, and 269SD of the Customs Act 1901. These sections collectively establish the criteria for making and revoking Tariff Concession Orders (TCOs) and specify the circumstances under which the Chief Executive Officer of Customs (the CEO) must revoke a TCO and issue a new one. Section 269C and 269P of the Act allow the CEO to make a TCO if the application meets the core criteria, which include ensuring that no substitutable goods are produced in Australia at the time the application is lodged. Section 269SD(2) requires the CEO to revoke a TCO and issue a new one if the tariff classification specified in the TCO no longer applies to the goods due to changes in the Customs Tariff Act 1995, a decision by a court or the Administrative Appeals Tribunal, or advice from an officer of Customs.
The Instrument imposes specific obligations on the parties or entities it governs. The CEO of Customs must closely monitor the tariff classifications of goods subject to TCOs to ensure that the correct classifications are applied. This requires the CEO to review and act upon changes in the Customs Tariff Act 1995, decisions by relevant courts or tribunals, and advice from Customs officers. If the CEO determines that the tariff classification stated in a TCO no longer applies, they must promptly make an order revoking the existing TCO and issue a new one with the updated classification. This process ensures that the appropriate customs duty rates are applied to the goods, maintaining consistency and fairness in the application of the Customs Act.
The Instrument also outlines the consequences for non-compliance with its provisions. While the explanatory statement does not detail specific offences, penalties, or civil/criminal consequences for breach, the general framework of the Customs Act 1901 implies that any failure to adhere to the requirements of the Instrument could lead to legal action. The CEO's failure to revoke a TCO or issue a new one when necessary might result in incorrect customs duties being applied, which could lead to financial penalties, legal disputes, or other administrative actions against the parties involved. The precise penalties and consequences would be determined by the relevant provisions of the Customs Act 1901 and any other applicable legislation.