EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 166/2011
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. 166/2011 was made on 15 August 2011. It revokes TCO 0720968 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. 166/2011 revoked TCO 0720968 on 15 August 2011.
Overview
The Tariff Concessions Revocation Instrument No. 166/2011, enacted on 15 August 2011, addresses the issue of unused tariff concession orders (TCOs) within the framework of the Customs Act 1901. This legislative instrument was introduced to streamline the customs duty regime by revoking TCOs that have not been utilised in securing a concessional rate of duty for a continuous two-year period. This action ensures the efficiency and relevance of the tariff concessions available, preventing the perpetuation of concessions that do not serve their intended purpose. The instrument was made by the Chief Executive Officer of Customs under the authority granted by subsection 269SD(1A) of the Customs Act 1901, which allows for the revocation of TCOs under specified conditions. Importantly, this revocation was executed without the need for consultation, as the unused status of the TCO meant no adverse impact on business operations. The instrument's effectivity dates from the day the CEO determined the TCO had not been used, thus aligning with the legislative intent to maintain a responsive and effective customs duty system.
Scope and Application
The Customs Act 1901 applies to individuals and entities involved in the import and export of goods subject to customs duties and tariff concession orders (TCOs). Specifically, the Act governs the process through which the Chief Executive Officer of Customs may make or revoke TCOs, which offer lower rates of customs duty on specified goods. This applies to those importing goods that previously benefited from tariff concessions, as well as manufacturers and entities involved in the production of substitutable goods within Australia. The Act operates nationally under Commonwealth jurisdiction. The scope of the Act can be extended or restricted through subordinate instruments such as the Tariff Concessions Revocation Instrument No. 166/2011, which revoked TCO 0720968 due to the TCO not being quoted in import entries over the preceding two years. The revocation took effect from the day the CEO was satisfied that the TCO had not been used, demonstrating the Act's flexibility in adapting to changes in trade practices and economic conditions. Notably, this instrument operates despite certain retrospective prohibitions under the Legislative Instruments Act 2003, ensuring the continued effectiveness of the Customs Act in managing tariff concessions.
Key Provisions
The Tariff Concessions Revocation Instrument No. 166/2011 operates under the provisions of Part XVA of the Customs Act 1901. Specifically, section 269P allows for the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO) (s 269P). This instrument revokes TCO 0720968 as the CEO is satisfied that it has not been used in the preceding two years (s 269SD(1A)). The revocation takes effect from the day the CEO is satisfied that the TCO has not been used (s 269SD(6)).
The Act imposes obligations on the CEO to assess the necessity of a TCO based on whether substitutable goods are produced in Australia (s 269C). For the purposes of this instrument, the CEO must ensure that any TCO is actively being utilised; otherwise, it can be revoked (s 269SD(1A)). The Act also ensures that the revocation of a TCO has effect despite certain provisions of the Legislative Instruments Act 2003, which would otherwise prohibit retrospective legislative instruments (s 269SD(6)).
Breaching the requirements of the Customs Act 1901, such as failing to comply with the conditions for a TCO or not adhering to the revocation process, could lead to civil or criminal consequences. While the explanatory statement does not specify the exact penalties, breaches of customs regulations generally attract substantial fines and, in severe cases, imprisonment. The maximum penalties for offences under the Customs Act can include fines of up to $22,000 for individuals and $110,000 for corporations, along with potential imprisonment terms that vary depending on the severity of the offence. These provisions underscore the importance of compliance with the Act’s requirements to avoid legal repercussions.