EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 164/2007
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(2) 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 164/2007 was made on
20 August 2007. This instrument revokes 0614238 of classification 8419.90.00 and makes new TCO 0614817 of classification 8479.82.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) 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 164/2007 revokes TCO 0614238 and makes new TCO 0614817 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 164/2007 was enacted to address the obsolescence of certain Tariff Concession Orders (TCOs) due to amendments in the Customs Tariff Act 1995. This instrument was introduced by the Chief Executive Officer of Customs under the Customs Act 1901 to ensure that the correct tariff classifications apply to imported goods, thereby maintaining the integrity of the customs duty scheme. The instrument revokes TCO 0614238 and replaces it with a new TCO 0614817, reflecting the changes brought about by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, effective from 1 January 2007. The objective of this legislative action was to align the tariff concessions with the updated tariff classifications, ensuring continued compliance and efficiency in the customs duty application process.
Scope and Application
The Tariff Concessions Revocation Instrument 164/2007 under the Customs Act 1901 applies specifically to the revocation and subsequent creation of Tariff Concession Orders (TCOs) concerning the classification of certain goods. The Act and its associated instrument impact entities and individuals involved in the import and export of goods that are subject to the altered tariff classifications, thus affecting their customs duty obligations. The instrument’s geographic reach extends across the Commonwealth of Australia, ensuring that the changes in tariff classifications are uniformly applied. Notably, the instrument revokes Tariff Concession Order 0614238 and introduces a new Tariff Concession Order 0614817, reflecting amendments to the Customs Tariff Act 1995 that took effect from 1 January 2007. This change is a direct consequence of the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, and no consultation was deemed necessary as the changes were deemed minor and administrative in nature. The revocation and creation of these TCOs have been effective from the date when the Chief Executive Officer of Customs was satisfied that the tariff classifications would no longer apply to the specified goods.
Key Provisions
The main operative sections of this legislation include sections 269C and 269P, which outline the conditions under which a Tariff Concession Order (TCO) can be made by the Chief Executive Officer of Customs (CEO) (sections 269C and 269P). Subsection 269SD(2) further provides that if the CEO is satisfied that the tariff classification stated in a TCO will no longer apply to the goods due to an amendment of the Customs Tariff Act 1995, the CEO must revoke the existing TCO and issue a new one (subsection 269SD(2)). This revocation and creation of new TCOs are aimed at ensuring that the correct tariff classifications are applied to goods as per the Customs Tariff Act 1995.
The Act imposes obligations on the CEO of Customs to ensure that the correct tariff classifications are applied to goods. This includes making TCOs if the application meets the core criteria and revoking existing TCOs if their tariff classifications are no longer applicable due to amendments in the Customs Tariff Act 1995 (sections 269C, 269P, and subsection 269SD(2)). The CEO must act in accordance with these provisions to maintain the integrity of the tariff concession scheme.
Breaching the provisions of the Customs Act 1901, particularly in relation to the improper application or revocation of TCOs, can result in both civil and criminal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of the Customs Act can typically lead to fines and other penalties as prescribed by the relevant laws. The maximum penalties for customs-related offences can be substantial, reflecting the importance of compliance with the Act’s provisions. It is essential for entities involved in importing or exporting goods subject to these tariff concessions to ensure they adhere to the requirements set out in the Act to avoid any potential legal repercussions.