EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 17/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 17/2012 was made on
30 November 2011. This instrument revokes 0718999 of classification 7615.19.00 and makes new TCO 1132503 of classification 7615.10.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 17/2012 revokes TCO 0718999 and makes new TCO 1132503 in its place, with effect from 1 January 2012.
Overview
The Customs Act 1901, enacted to regulate the importation and exportation of goods and to impose customs duty, includes provisions for the making and revocation of Tariff Concession Orders (TCOs) to provide relief from customs duty under certain conditions. The Tariff Concessions Revocation Instrument 17/2012 was introduced to address the need for updated tariff classifications following amendments to the Customs Tariff Act 1995. This instrument, created by the Chief Executive Officer of Customs, revokes the existing TCO 0718999 and introduces a new TCO 1132503, both effective from 1 January 2012. The revocation and creation of these new orders are a direct response to changes in the Customs Tariff Act 1995, as implemented through the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The objective of this legislative instrument is to ensure that the tariff classifications applied to goods under the TCOs accurately reflect the current tariff schedule.
Scope and Application
The Customs Act 1901 applies to individuals, entities, and goods that are subject to the customs duty regime within Australia, encompassing both the federal and state jurisdictions. The Act provides authority for the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which pertain specifically to the reduction of customs duty rates on certain goods. The scope of the Act includes any goods imported into Australia that are eligible for tariff concessions, subject to the criteria set forth in sections 269C and 269P, specifically that no substitutable goods are produced in Australia on the day the application for the TCO is lodged. The geographic reach of the Act is nationwide, applying to all states and territories within Australia. The Act's provisions are further detailed through subordinate instruments, such as the Tariff Concessions Revocation Instrument 17/2012, which reflects amendments to the Customs Tariff Act 1995 and adjusts the applicable tariff classifications accordingly. This particular instrument revokes TCO 0718999 and establishes new TCO 1132503, effective from 1 January 2012, in response to the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
Key Provisions
The Tariff Concessions Revocation Instrument 17/2012 (the Instrument) revokes Tariff Concession Order (TCO) 0718999 and replaces it with TCO 1132503, reflecting amendments made to the Customs Tariff Act 1995 (section 2). The Instrument revokes the previous tariff concession for goods classified under 7615.19.00 and establishes a new concession for goods under classification 7615.10.00, effective from 1 January 2012. This change follows the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which updated the tariff classifications for certain goods.
The Instrument imposes specific obligations on the Chief Executive Officer of Customs (CEO), who must revoke a TCO if satisfied that the tariff classification will no longer apply to the goods (section 269SD(2A)). Upon such satisfaction, the CEO is mandated to issue a new TCO to accommodate the revised tariff classification. This process ensures that the customs duty rates applied to specific goods remain consistent with updated tariff classifications. The CEO's actions are governed by the conditions outlined in the Customs Act 1901, particularly sections 269C and 269P, which pertain to the making and revoking of TCOs.
Non-compliance with the provisions of the Customs Act 1901 and the Instrument may result in various legal consequences. Any person or entity failing to adhere to the tariff concessions established by the Instrument may face penalties. Specifically, under section 269SD of the Customs Act 1901, penalties may include fines and, in severe cases, criminal prosecution. The maximum penalties for contravening customs laws can be substantial, with potential fines and imprisonment depending on the nature and severity of the breach. The exact penalties are prescribed by the Customs Act 1901 and are subject to the discretion of the court.