EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 17/2006
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 the CEO is satisfied that, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 17/2006 was made on 10 March 2006. It revokes TCO 0603487 and makes TCO 0604912 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.17/2006 revoked 0603487 and made new TCO 0604912 on 10 March 2006.
Overview
The Tariff Concessions Revocation Instrument 17/2006, enacted under the Customs Act 1901, addresses the issue of transcription errors in Tariff Concession Orders (TCOs) that can lead to incorrect tariff classifications and duty rates for imported goods. This legislative instrument was introduced to rectify such errors efficiently, ensuring that the customs duty applied is accurate and consistent with the intended policy. The instrument was made by the Chief Executive Officer of Customs, exercising powers granted under sections 269C, 269P, and 269SD of the Customs Act 1901, with the aim of correcting the error in the description of goods and their tariff classification. This instrument came into effect on the date the original TCO was enforced and the new TCO took effect from the date of revocation of the old order, ensuring continuity and clarity in the application of customs duties.
Scope and Application
The Tariff Concessions Revocation Instrument 17/2006 operates under the Customs Act 1901, specifically addressing the revocation and correction of Tariff Concession Orders (TCOs) made by the Chief Executive Officer of Customs. This instrument applies to any goods subject to the revoked TCO 0603487 and the newly issued TCO 0604912, focusing on rectifying a transcription error in the description and tariff classification of these goods. The instrument affects all entities and individuals importing goods that were originally subject to the now-revoked TCO, ensuring that the correct tariff concessions are applied. The instrument has a Commonwealth reach, being a legislative measure under the federal Customs Act. While the instrument itself does not specify exclusions, exemptions, or thresholds, it operates within the existing framework of the Customs Act, which governs the broader application of tariff concessions. The revocation and creation of new TCOs through this instrument extend the application of the Customs Act by directly impacting the duty rates on specific goods, thereby influencing import transactions and duties for those affected by the corrected classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 17/2006, made under the Customs Act 1901, specifically addresses the revocation and creation of Tariff Concession Orders (TCOs) due to a transcription error. Under section 269SD(2), the Chief Executive Officer of Customs is authorised to revoke a TCO and issue a new one if there is a transcription error in the description of goods or the tariff classification stated in the TCO. In this case, the instrument revoked TCO 0603487 and introduced TCO 0604912 to correct the error.
The obligations and requirements imposed by this instrument are primarily administrative and procedural. The CEO must be satisfied that a transcription error exists before revoking and reissuing a TCO. This involves a review of the original TCO and the application for the concession to ensure that the error is accurately identified and rectified. The CEO’s decision to revoke and issue a new TCO must align with the criteria set out in the Customs Act, ensuring that the corrected TCO continues to meet the core criteria for tariff concessions, such as the absence of substitutable goods produced in Australia.
For breaches of the provisions set out in the Customs Act or the Tariff Concessions Revocation Instrument, there can be significant legal consequences. Although the explanatory statement does not explicitly detail specific offences or penalties, breaches of the Customs Act can result in civil and criminal penalties. Civil penalties may include fines and other monetary penalties, while criminal offences can lead to imprisonment. The exact penalties depend on the nature and severity of the breach and are defined in other sections of the Customs Act and relevant criminal legislation.
Section 269SD(6) of the Customs Act ensures that the revocation and reissuance of a TCO can take effect despite provisions in the Legislative Instruments Act 2003 that prohibit retrospective legislative instruments. This means that the changes made by the Tariff Concessions Revocation Instrument 17/2006 can apply retroactively from the date the original TCO came into force, ensuring that the correction of the transcription error does not unfairly impact the parties subject to the tariff concessions.