EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 15/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 15/2012 was made on
29 November 2011. This instrument revokes 0617298 of classification 7615.19.00 and makes new TCO 1130499 of classification 7615.10.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 15/2012 revokes TCO 0617298 and makes new TCO 1130499 in its place, with effect from 1 January 2012.
Overview
The Customs Act 1901 was enacted to provide for the regulation of customs and excise duties, including the establishment of a scheme for tariff concessions. The Tariff Concessions Revocation Instrument 15/2012 was introduced to address the need to revoke and replace certain Tariff Concession Orders (TCOs) due to amendments in the Customs Tariff Act 1995. This instrument was made by the Chief Executive Officer of Customs under sections 269C and 269P of the Customs Act 1901, which outline the conditions for making and revoking TCOs. The policy objective of the instrument was to ensure that tariff concessions remain aligned with updated tariff classifications, thereby maintaining consistency and fairness in the application of customs duties. The instrument reflects the changes brought about by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which became effective from 1 January 2012.
Scope and Application
The Tariff Concessions Revocation Instrument 15/2012, made under the Customs Act 1901, pertains to the revocation and replacement of Tariff Concession Orders (TCOs) for specific goods affected by amendments in the Customs Tariff Act 1995. This legislation applies to the Chief Executive Officer of Customs who is responsible for the administration and enforcement of tariff concessions. It impacts entities and individuals involved in the importation of goods classified under the revoked and newly established tariff codes, namely 7615.19.00 and 7615.10.00 respectively. The instrument ensures that the application of tariff concessions aligns with updated tariff classifications, thereby affecting the customs duty rates applicable to the specified goods. The geographic reach of this legislation is national, as it pertains to customs duties across Australia. The Act does not explicitly state exclusions or thresholds but operates within the existing framework of the Customs Act 1901 and its amendments. The revocation and creation of new TCOs are executed in accordance with the statutory provisions, ensuring that the application of tariff concessions remains current and relevant.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 15/2012 (sections 269C, 269P, and 269SD(2A) of the Customs Act 1901) mandate that the Chief Executive Officer of Customs (CEO) must revoke a Tariff Concession Order (TCO) and issue a new one if there is an amendment to the Customs Tariff Act 1995 that changes the tariff classification of the goods in question. Specifically, section 269C allows for the creation of TCOs if the application meets core criteria, such as the absence of substitutable goods produced in Australia at the time of application. Section 269P provides the mechanism for revoking a TCO, while section 269SD(2A) obliges the CEO to issue a new TCO when necessary due to tariff changes.
The Act imposes several obligations on the CEO. Primarily, the CEO must ensure that any TCOs in effect accurately reflect the current tariff classifications as set out in the Customs Tariff Act 1995. This involves monitoring amendments to the tariff classifications and promptly revoking and reissuing TCOs when changes occur. The CEO must also ensure that the new TCOs continue to meet the core criteria specified under section 269C, such as the non-production of substitutable goods in Australia.
Failure to comply with the provisions of the Customs Act 1901 can lead to various civil and criminal consequences. While the explanatory statement does not explicitly outline the penalties for non-compliance, it is understood that breaches of the Act can result in substantial fines and, in some cases, imprisonment. The specific penalties are typically detailed in other sections of the Customs Act 1901 and related legislation, but the seriousness of the potential repercussions underscores the importance of adhering to the statutory requirements.