Overview

The Tariff Concessions Revocation Instrument 154/2011, enacted on 29 July 2011, addresses the issue of unused Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was introduced by the Chief Executive Officer of Customs (CEO) in accordance with the authority granted under the Customs Act. The underlying problem it aims to resolve is the inefficiency and redundancy that arises from TCOs which have not been utilised for two consecutive years, thus ensuring that tariff concessions are only applied to actively used orders. The policy objective of the instrument is to maintain a streamlined and effective customs duty system by revoking TCOs that have not been quoted in import entries to secure concessional rates of duty within the stipulated timeframe. The instrument revokes TCO 0603546 due to the CEO's satisfaction that it had not been used in the preceding two years, thereby eliminating any potential impact on business. This revocation is effective from the day the CEO became satisfied with the lack of usage, as stipulated in the Customs Act. Notably, the revocation is exempt from the prohibition of retrospective legislative instruments as outlined in section 12 of the Legislative Instruments Act 2003, ensuring the immediate effect of the revocation.

Scope and Application

The Customs Act 1901, through its Part XVA, establishes a framework under which the Chief Executive Officer of Customs (CEO) may issue and revoke Tariff Concession Orders (TCOs). These orders facilitate a lower rate of customs duty on specified goods, provided that no substitutable goods are produced in Australia in the ordinary course of business on the day the application for the TCO is lodged. Section 269C and 269P of the Act detail the criteria for issuing a TCO, while section 269SD(1A) empowers the CEO to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty in the two years prior to the CEO's satisfaction. The Tariff Concessions Revocation Instrument No. 154/2011 revokes TCO 0603546 as the CEO determined it had not been used in the preceding two years, thereby rendering it unnecessary. This revocation took effect from the day the CEO became satisfied about the non-use of the TCO, as stipulated in section 269SD(1A) and (6) of the Act. Notably, this instrument operates independently of section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.

Key Provisions

The Tariff Concessions Revocation Instrument No. 154/2011 (the Instrument) revokes Tariff Concession Order (TCO) 0603546 under the Customs Act 1901. Section 269SD(1A) of the Act allows the Chief Executive Officer of Customs (the CEO) to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty in the preceding 2 years. This revocation took effect from 27 July 2011, the day the CEO became satisfied that the TCO had not been used during the specified period (section 269SD(1A)). The Act imposes several obligations on the CEO in relation to TCOs. Under section 269C, a TCO can only be made if the application meets the core criteria, which includes the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Moreover, section 269P requires the CEO to consider various factors before making a TCO, such as the potential impact on Australian industry and the availability of like goods in Australia. Section 269SD(1A) further requires the CEO to revoke a TCO if it has not been used in the preceding 2 years, as is the case with TCO 0603546. The Act does not explicitly detail offences, penalties, or civil/criminal consequences for the non-compliance with the provisions regarding TCOs. However, revocation of a TCO can have significant implications for importers who previously relied on the concessional rate of duty. The revocation means that the higher standard rate of duty will now apply to the goods covered by the revoked TCO, potentially increasing import costs. It is important for importers to stay informed about the status of TCOs relevant to their imported goods to avoid any unexpected increases in duty rates.