EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 16/2012
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 16/2012 was made on
30 November 2011. This instrument revokes 0708493 of classification 7615.19.00 and makes new TCO 1132501 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 16/2012 revokes TCO 0708943 and makes new TCO 1132501 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 16/2012 was enacted to address discrepancies in the Customs Act 1901 arising from amendments to the Customs Tariff Act 1995. This instrument was made under the authority of the Chief Executive Officer of Customs, who is empowered to revoke and create Tariff Concession Orders (TCOs) as necessary to align with changes in tariff classifications. The instrument revokes TCO 0708493 and replaces it with TCO 1132501, reflecting the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. This change ensures that the correct tariff classifications are applied to the relevant goods from 1 January 2012 onwards. The instrument was issued without consultation as the changes were considered minor and primarily of a procedural nature. The revocation and creation of these orders are effective from the date the CEO determined that the existing tariff classifications would no longer apply to the goods in question.
Scope and Application
The Tariff Concessions Revocation Instrument 16/2012 under the Customs Act 1901 applies to entities and individuals involved in the importation of goods subject to the specified tariff concession orders (TCOs). Specifically, it concerns those who import goods classified under the affected tariff classifications, as outlined in the Customs Tariff Act 1995. The Instrument addresses changes in tariff classifications due to amendments in the Customs Tariff Act 1995, impacting the duty rates applicable to certain imported goods. Geographically, the Act applies throughout Australia as it is a Commonwealth legislation. The Instrument itself revokes an existing TCO and establishes a new one, reflecting changes that took effect from 1 January 2012. This legislative action is made under the authority provided in sections 269C, 269P, and 269SD(2A) of the Customs Act 1901, ensuring that the application of customs duties aligns with updated tariff classifications. The revocation and creation of TCOs through this Instrument are made without substantial consultation due to the minor and machinery nature of the changes.
Key Provisions
The Tariff Concessions Revocation Instrument 16/2012 under the Customs Act 1901 (section 269SD(2A)) outlines the process for revoking and creating new Tariff Concession Orders (TCOs). Specifically, this instrument revokes TCO 0708493 and replaces it with TCO 1132501, effective from 1 January 2012. These changes follow amendments to the Customs Tariff Act 1995. The instrument aims to ensure that the correct tariff classifications are applied to goods, reflecting the most current tariff system.
The Act imposes several obligations on the Chief Executive Officer of Customs (CEO) in relation to these TCOs. Firstly, if the CEO is satisfied that a tariff classification stated in a TCO will no longer apply due to amendments in the Customs Tariff Act 1995, they must revoke the existing TCO (section 269SD(2A)). Secondly, the CEO must then issue a new TCO that reflects the updated tariff classification for the same goods. These obligations ensure that the duty rates applied to goods remain accurate and consistent with the current tariff schedule.
Breach of the obligations outlined in the Act could lead to legal consequences. If the CEO fails to make the required orders to revoke and replace a TCO when necessary, it may result in incorrect tariff classifications being applied to goods, leading to potential financial losses for importers or exporters. Additionally, non-compliance could result in penalties under the Customs Act 1901, including fines and other civil or criminal sanctions. The maximum penalties for offences under the Customs Act can vary depending on the severity of the breach, but they may include significant fines and, in some cases, imprisonment.