EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 17/2009
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:
− because of an amendment of the Customs Tariff Act 1995; or
− having regard to a decision of a court of the Administrative Appeals Tribunal; or
− having regard to written advice on the matter given by an officer of Customs;
the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO has not, with effect from a particular day, applied 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 the revocation.
Instrument
Tariff Concessions Revocation Instrument No 17/2009 was made on 18 September 2008. It revokes TCO 0314537 and makes TCO 0829873 The tariff classification has been changed from 8536.30.00 to 8537.10.90 because of a tariff classification change.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the order revoking the TCO has effect from the day on which the tariff classification did not apply to the goods. Further the new TCO has effect from the revocation. Subsection 269SD(4) provides that the day may be the day on which the old TCO came into force or a later day.
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. 17/2009 revoked 0314537 and made new TCO 0829873 on 18 September 2008, with the Revocation date of effect as from 18 September 2008
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the imposition of customs duty on imported goods. Part XVA of the Act, in particular, allows for the creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders apply lower rates of customs duty to certain goods when specific criteria are met, primarily that no substitutable goods are produced in Australia. The Tariff Concessions Revocation Instrument 17/2009, made on 18 September 2008, addresses a specific issue arising from changes in tariff classifications, necessitating the revocation of existing TCOs and the issuance of new ones to reflect updated classifications. This instrument ensures that the application of customs duty remains aligned with current tariff structures, thereby maintaining the integrity and effectiveness of the customs duty system. The policy objective here is to ensure that the concessions provided under the TCOs accurately reflect the current tariff classifications, preventing any unintended benefits or burdens on importers and the broader economy.
Scope and Application
The Tariff Concessions Revocation Instrument 17/2009, under the Customs Act 1901, applies to the revocation of Tariff Concession Orders (TCOs) and the subsequent establishment of new TCOs when there is a change in tariff classification of goods, as determined by the Chief Executive Officer of Customs. This instrument operates within the Commonwealth jurisdiction and affects entities and individuals who import goods subject to the revoked TCOs, ensuring compliance with updated tariff classifications. The instrument revokes TCO 0314537 and introduces TCO 0829873 due to a change in tariff classification, impacting the duty rates on specified goods. The revocation and creation of new TCOs are effective from the date the tariff classification change took effect, as stipulated in subsection 269SD(2) of the Act. Notably, the revocation order has effect despite the prohibition on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003, as clarified in subsection 269SD(6) of the Customs Act.
Key Provisions
The Tariff Concessions Revocation Instrument 17/2009, made under sections 269C and 269P of the Customs Act 1901 (the Act), addresses the revocation and establishment of Tariff Concession Orders (TCOs). Specifically, this Instrument revokes TCO 0314537 and replaces it with TCO 0829873, which was necessitated by a change in tariff classification from 8536.30.00 to 8537.10.90. The revocation and the issuance of the new TCO took effect from 18 September 2008, the date of the Instrument's creation. This action was undertaken to ensure that the goods subject to the TCOs are correctly classified under the updated tariff classification.
Under the Customs Act 1901, the Chief Executive Officer of Customs (the CEO) has the authority to make and revoke TCOs, which determine the lower rates of customs duty applicable to specific goods. The CEO's ability to revoke a TCO and issue a new one is governed by section 269SD(2) of the Act. This section mandates that the CEO must revoke a TCO and issue a new one if, due to an amendment of the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from an officer of Customs, the tariff classification stated in the TCO no longer applies to the goods as of a particular day. The obligations on the CEO include ensuring that the new TCO accurately reflects the current tariff classification of the goods in question.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 17/2009 can result in various legal consequences. Although the explanatory statement does not detail specific offences or penalties, breaches of the Act can lead to civil or criminal sanctions. Under the Customs Act, penalties for non-compliance can include fines, imprisonment, or both, depending on the severity of the breach. The exact penalties would be determined by the courts based on the specific circumstances of the case and the provisions of the Act. Additionally, incorrect tariff classification can result in financial liabilities for importers, including the payment of additional duties and interest on those duties.
In summary, the Tariff Concessions Revocation Instrument 17/2009 revoked TCO 0314537 and issued TCO 0829873 in response to a change in tariff classification. The CEO's role in ensuring that the correct tariff classification applies to the goods is crucial. While the explanatory statement does not outline specific penalties for non-compliance, breaches of the Customs Act 1901 can lead to significant civil and criminal consequences.