Overview

The Tariff Concessions Revocation Instrument No. 159/2011, made under the Customs Act 1901, was introduced to address the issue of unused Tariff Concession Orders (TCOs) that do not benefit the import market. Enacted by the Chief Executive Officer of Customs, this instrument revokes TCO 0704718 as it has not been utilised in the preceding two years, aligning with the policy objective to ensure that tariff concessions are relevant and actively supporting trade. The revocation is effective from the date the CEO is satisfied that the TCO has not been used, and it operates despite certain prohibitions on retrospective legislative instruments, ensuring that the Customs Act can dynamically respond to trade practices. This legislative action underscores the importance of maintaining an efficient and responsive tariff concession scheme within the Australian customs framework.

Scope and Application

The Tariff Concessions Revocation Instrument No. 159/2011, under the Customs Act 1901, applies to Tariff Concession Orders (TCOs) that have not been used in the two years preceding the day the Chief Executive Officer of Customs becomes satisfied that they are no longer required. The Act provides for the making and revocation of TCOs by the CEO, with the revocation occurring if the TCO has not been quoted in an import entry to secure a concessional rate of duty for two consecutive years. This specific instrument revokes TCO 0704718, as determined by the CEO. The revocation is effective from the day the CEO is satisfied that the TCO has not been used in the preceding two years, with the revocation order taking effect on 27 July 2011. The revocation does not require consultation as it does not impact business due to the inactivity of the TCO. The scope of the instrument is national, as it is made under the Commonwealth's Customs Act 1901. There are no stated exclusions or exemptions within this instrument, and the application of the Act is not extended or restricted through subordinate instruments beyond what is specified within the Act itself.

Key Provisions

The Tariff Concessions Revocation Instrument No. 159/2011, pursuant to sections 269C and 269P of the Customs Act 1901, revokes Tariff Concession Order (TCO) 0704718. This revocation occurs because the Chief Executive Officer (CEO) of Customs is satisfied that the TCO has not been quoted in an import entry to secure a concessional rate of duty in the two years preceding the day of satisfaction, as per section 269SD(1A) of the Act. The revocation takes effect from the day the CEO is satisfied about the non-use of the TCO, which was on 27 July 2011 (Tariff Concessions Revocation Instrument No. 159/2011). This instrument operates to ensure that tariff concessions are only applied when necessary, maintaining efficiency and relevance in customs duty applications. The Act imposes several obligations and requirements on parties governed by it. Firstly, for a TCO to be made, the application must meet the core criteria, specifically that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged (section 269C). Secondly, the CEO must periodically review the usage of TCOs to ensure they are still required and relevant, revoking them if they have not been used in the preceding two years (section 269SD(1A)). Additionally, section 269SD(6) ensures that the revocation provisions take effect despite the prohibitions in section 12 of the Legislative Instruments Act 2003, which would otherwise restrict the retrospective application of certain legislative instruments. Breaching the provisions of the Customs Act 1901 can lead to various civil and criminal consequences. While the specific offences and penalties related to the revocation of TCOs are not detailed in the explanatory statement, the Act generally provides for penalties for non-compliance with customs duties and related regulations. For instance, section 269 of the Act outlines that an individual or entity may be subject to financial penalties, including fines, for offences such as fraudulent or misleading statements in applications for tariff concessions. The maximum penalties for such offences can be significant, depending on the nature and severity of the breach. Additionally, persistent or egregious breaches may lead to criminal charges, resulting in imprisonment, further compounding the financial penalties imposed.