EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 164/2011
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(1A) of the Act provides that the CEO may revoke a TCO if he or she is satisfied on any day that a TCO is no longer required because, in the 2 years preceding that day, the TCO has not been quoted in an import entry to secure a concessional rate of duty.
Instrument
Tariff Concessions Revocation Instrument No. 164/2011 was made on 02 August 2011. It revokes TCO 0717218 as the CEO is satisfied that the TCO has not been used in the preceding 2 years.
Consultation
No consultation was undertaken. Since the TCO has not been used in the preceding 2 years, the revocation of the TCO will not have an effect on business.
Commencement
Subsection 269SD(1A) provides that the order revoking the TCO has effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding 2 years.
Subsection 269SD(6) provides that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concessions Revocation Instrument No. 164/2011 revoked TCO 0717218 on 27 July 2011.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, provides for the imposition of customs duty on imported goods, among other things. To address the issue of unused tariff concession orders (TCOs) that do not serve the intended purpose of facilitating trade, the Tariff Concessions Revocation Instrument No. 164/2011 was introduced. This instrument empowers the Chief Executive Officer of Customs 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 preceding the date of revocation. This measure ensures that tariff concessions remain relevant and effective in promoting trade, while also preventing unnecessary administrative burden on businesses. The instrument came into effect on 27 July 2011, and no consultation was undertaken as the revoked TCO had not been used in the preceding two years, and thus would not affect businesses.
Scope and Application
The Tariff Concessions Revocation Instrument No. 164/2011 under the Customs Act 1901 applies to Tariff Concession Orders (TCOs) that have not been used to secure a concessional rate of duty for two consecutive years. Specifically, this instrument revokes TCO 0717218 due to its inactivity over the specified period. The revocation is applicable to entities and individuals who may have been relying on this particular TCO to benefit from reduced customs duty rates on imported goods. The instrument reflects the authority granted to the Chief Executive Officer of Customs (CEO) under section 269SD(1A) of the Act, allowing for the revocation of unused TCOs. The geographic reach of this instrument is national, as it pertains to the application of the Customs Act 1901 across Australia. No consultation was deemed necessary as the revocation is unlikely to impact businesses given the inactivity of the TCO. The revocation took effect from the date the CEO became satisfied that the TCO had not been used in the preceding two years, which was 27 July 2011. This revocation is effective despite provisions in the Legislative Instruments Act 2003 that generally prohibit retrospective legislative instruments.
Key Provisions
The Tariff Concessions Revocation Instrument No. 164/2011 operates under sections 269C, 269P, 269SD(1A), and 269SD(6) of the Customs Act 1901. This legislation allows the Chief Executive Officer (CEO) of Customs to revoke Tariff Concession Orders (TCOs) if certain conditions are met. Specifically, section 269SD(1A) empowers the CEO to revoke a TCO if it has not been used to secure a concessional rate of duty in the two years prior to the CEO’s decision. This revocation takes effect from the day the CEO is satisfied that the TCO has not been used (subsection 269SD(6)). The instrument revokes TCO 0717218 on 27 July 2011, based on the CEO’s determination that it had not been utilised in the preceding two years.
The Act imposes certain obligations on the CEO to review and revoke TCOs that are no longer in use. The CEO must ensure that a TCO is revoked if it has not been quoted in any import entry within the two-year period prior to the revocation. This ensures that the tariff concession scheme remains efficient and relevant to current trade practices. The CEO's decision to revoke a TCO must be based on a clear assessment of its usage in the import entries over the specified period.
Failure to comply with the requirements set out in the Customs Act 1901 can lead to various consequences. While the Act does not explicitly outline offences or penalties for non-compliance with TCO revocations, the revocation of unused TCOs is a regulatory action to maintain the integrity of the tariff concession scheme. The Act’s provisions ensure that customs duties are applied correctly and fairly, and any misuse of TCOs could potentially lead to investigations and enforcement actions by the Customs authority.
The Instrument’s operation is designed to prevent the misuse of tariff concessions and to ensure that the customs duty scheme operates efficiently. The revocation of TCO 0717218 is an example of this regulatory oversight, ensuring that tariff concessions are only applied to goods that genuinely benefit from such concessions. The CEO’s authority to revoke unused TCOs helps to maintain the accuracy and relevance of the customs duty rates applied to imported goods.