Overview

The Customs Act 1901 was enacted to provide a regulatory framework for the administration of customs and excise duties, including the ability to grant and revoke tariff concession orders. The Tariff Concessions Revocation Instrument 167/2011, made by the Chief Executive Officer of Customs, serves to address the problem of unused tariff concession orders which do not contribute to the intended economic or trade policy objectives. This instrument revokes Tariff Concession Order 0721804 as it has not been utilised in the preceding two years, thereby ensuring that the concessions are only applied where there is an actual need and benefit. The revocation, effective from the day the CEO became satisfied that the order was unused, adheres to the provisions of the Customs Act 1901 and operates despite the constraints imposed by section 12 of the Legislative Instruments Act 2003.

Scope and Application

The Tariff Concessions Revocation Instrument No. 167/2011 applies to Tariff Concession Orders (TCOs) under the Customs Act 1901, specifically addressing TCO 0721804. The Act allows the Chief Executive Officer of Customs (CEO) to revoke TCOs that have not been quoted in an import entry to secure a concessional rate of duty for two consecutive years. This revocation is in line with subsection 269SD(1A) of the Act, which empowers the CEO to revoke such orders if they determine that the concessions are no longer required. The instrument is geographically applicable across Australia, as the Customs Act 1901 is a Commonwealth Act, thereby extending its reach nationally. There are no stated exclusions or exemptions within the instrument itself, though the Act generally applies to entities and individuals involved in importing goods subject to customs duty. The revocation of the TCO is effective from the day the CEO becomes satisfied that the TCO has not been used in the preceding two years, as per the provisions of subsection 269SD(1A). Furthermore, the revocation operates despite certain prohibitions under the Legislative Instruments Act 2003, ensuring that the revocation can take effect without being hindered by retrospective legislative constraints.

Key Provisions

The Tariff Concessions Revocation Instrument No. 167/2011 primarily concerns the revocation of Tariff Concession Order (TCO) 0721804 under the Customs Act 1901. Specifically, sections 269C and 269P outline the criteria for making a TCO, where a lower rate of customs duty applies to goods if no substitutable goods are produced in Australia. Subsection 269SD(1A) empowers the Chief Executive Officer (CEO) of Customs to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty within the preceding two years. This instrument revokes TCO 0721804 as the CEO is satisfied that it has not been used during this period. The Act imposes several obligations on the parties governed by it. Firstly, it mandates that a TCO can only be issued if no substitutable goods are produced in Australia, as per sections 269C and 269P. Secondly, the CEO has the authority under subsection 269SD(1A) to revoke a TCO if it has not been utilised to secure a concessional rate of duty within the preceding two years. This ensures that the concession remains relevant and is actively used to benefit the import process. Additionally, subsection 269SD(6) specifies that the revocation takes effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding two years, ensuring clarity on the timing of the revocation. Breach of the conditions specified in the Customs Act 1901 could lead to several consequences. Although the explanatory statement does not detail specific offences, penalties, or civil/criminal consequences, the revocation of a TCO for non-use could imply that continued non-compliance with the terms might result in further administrative actions. The maximum penalties for breaches of customs regulations are generally outlined in other sections of the Customs Act, and they can include substantial fines and potential criminal charges for serious violations. However, in this specific context, the primary consequence is the administrative action of revoking the TCO, which is a preventive measure to ensure that concessions are actively used and relevant.