EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 154/2007
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(3) 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 154/2007 was made on 4 October 2007. It revokes TCO 0708773 and makes TCO 0715811 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.154/2007 revoked 0708773 and made new TCO 0715811 on 4 October 2007, with the revocation date of effect as from 28 May 2007
Overview
The Tariff Concessions Revocation Instrument 154/2007, enacted in 2007, addresses a specific issue within the Customs Act 1901, which is the correction of transcription errors in Tariff Concession Orders (TCOs). The Customs Act 1901 establishes a scheme where the Chief Executive Officer of Customs can make and revoke TCOs, which apply lower rates of customs duty to certain goods. The problem this instrument was introduced to address is the potential for errors in the description or tariff classification of goods subject to a TCO. The instrument was enacted by the Chief Executive Officer of Customs, in accordance with section 269SD(3) of the Customs Act 1901, to correct such errors and ensure that the tariff concessions are accurately applied. The policy objective is to maintain the integrity of the tariff concession scheme by correcting errors that could otherwise affect the application of customs duties.
Scope and Application
The Tariff Concessions Revocation Instrument 154/2007 operates under the Customs Act 1901, specifically addressing the revocation of Tariff Concession Orders (TCOs) due to transcription errors. The Act applies to goods subject to a TCO, where the application for the TCO was made under the authority granted to the Chief Executive Officer of Customs. This legislation affects entities and individuals involved in the importation of goods that benefit from tariff concessions, as well as the broader industry that relies on accurate tariff classifications for compliance and duty calculations. The instrument's application is national in scope, aligning with the federal jurisdiction of the Customs Act. The Instrument revokes TCO 0708773 and replaces it with TCO 0715811 to correct a transcription error, with the revocation effective from the original commencement date of the revoked order and the new order effective from the date of revocation. No consultation was deemed necessary due to the minor and mechanical nature of the change.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 154/2007 pertain to the revocation of an existing Tariff Concession Order (TCO) and the issuance of a new one to correct a transcription error. Specifically, section 3 of the Instrument revokes TCO 0708773 (paragraph (a)) and establishes a new TCO 0715811 (paragraph (b)) due to a transcription error in the description of the goods and their tariff classification. The revocation and creation of new TCOs are aimed at ensuring the accuracy of the goods' descriptions and their corresponding tariff classifications.
The Instrument imposes obligations and requirements on the Chief Executive Officer of Customs (CEO) and the relevant stakeholders. Under section 269SD(3) of the Customs Act 1901, the CEO must ensure that a TCO is not made if there is a transcription error in the description of goods, including the tariff classification. If such an error is identified, the CEO is required to make an order revoking the TCO and issue a new one to correct the error. This process ensures that the appropriate customs duty rates are applied to the correct goods, maintaining the integrity of the tariff concession scheme.
Failure to comply with the requirements outlined in the Instrument may result in civil or criminal consequences. While the explanatory statement does not specify the exact penalties for non-compliance, it is reasonable to infer that breaches of the Customs Act 1901 and its associated instruments could result in penalties as outlined in the Act. Such penalties could include fines and, in severe cases, imprisonment. The precise penalties would depend on the nature and severity of the breach, as well as any relevant case law and statutory provisions.