Overview

The Tariff Concessions Revocation Instrument 163/2011, enacted in 2011, addresses the issue of unused Tariff Concession Orders (TCOs) under the Customs Act 1901. This legislation was introduced by the Chief Executive Officer of Customs in accordance with the authority granted by sections 269C and 269P of the Customs Act 1901. The primary objective of this instrument is to ensure that tariff concessions are effectively utilised by revoking those TCOs that have not been used within a specified period, in this case, two years. The revocation of TCO 0716916 under this instrument reflects the policy objective of maintaining an efficient and responsive customs duty regime by eliminating redundant tariff concessions that do not contribute to trade activities. The instrument was made without prior consultation as it was determined that the revocation would not impact any businesses due to the inactivity of the TCO in question.

Scope and Application

The Tariff Concessions Revocation Instrument No. 163/2011 is an instrument made under the Customs Act 1901, specifically targeting the revocation of Tariff Concession Orders (TCOs) that have not been utilised within a two-year period. The Act applies to entities and individuals who may have previously been granted a TCO, allowing them to import goods at a reduced rate of customs duty. The instrument applies nationally and its revocation of TCO 0716916 reflects the authority vested in the Chief Executive Officer of Customs (CEO) to manage and oversee the concessions granted under Part XVA of the Customs Act. The revocation process is initiated if the CEO determines that a particular TCO has not been quoted in any import entry for securing a concessional rate of duty over the past two years. This instrument does not require consultation as its effects are limited to non-operational TCOs, thus not impacting ongoing business activities. The instrument came into effect on 27 July 2011, the day the CEO was satisfied of the TCO’s non-utilisation, notwithstanding certain retrospective prohibitions under the Legislative Instruments Act 2003.

Key Provisions

The Tariff Concessions Revocation Instrument No. 163/2011 revokes Tariff Concession Order (TCO) 0716916 under the Customs Act 1901 (the Act). Section 269SD(1A) of the Act permits the Chief Executive Officer of Customs (the CEO) to revoke a TCO if satisfied that the TCO has not been used in the preceding two years. This revocation applies to TCO 0716916 as the CEO confirmed it had not been used for this period. The instrument was made on 28 July 2011 and the revocation took effect from 27 July 2011, the day the CEO became satisfied of the non-usage. The Act imposes several obligations on the CEO regarding the management of TCOs. Under section 269C, a TCO can be made if an application meets the core criteria, specifically if no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P further details the process and criteria for making a TCO. Additionally, section 269SD(1A) mandates that the CEO must revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty in the preceding two years. Failure to adhere to the requirements and obligations under the Act can lead to various consequences. Under section 269SD(6), the CEO's power to revoke a TCO is effective despite any prohibitions in the Legislative Instruments Act 2003 regarding retrospective legislative instruments. This ensures that the CEO can act on non-usage of TCOs even if it involves retrospective application. There are no specified civil or criminal penalties in the text for the breach of these provisions, but the revocation of a TCO can have practical implications for those who relied on the tariff concessions.