EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 171/2007
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, 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 171/2007 was made on
20 August 2007. This instrument revokes 0614308 of classification 8479.90.00 and makes new TCO 0614818 of classification 8479.82.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
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 171/2007 revokes TCO 0614308 and makes new TCO 0614818 in its place, with effect from 1 January 2007.
Overview
The Customs Act 1901 was enacted to provide for the collection of duties of customs and excise and to regulate the importation and exportation of goods. The Tariff Concessions Revocation Instrument 171/2007, made on 20 August 2007, addresses a specific problem arising from changes to the Customs Tariff Act 1995, which necessitated the revocation of certain Tariff Concession Orders (TCOs) and the issuance of new ones to maintain the integrity of the tariff classification system. This instrument was enacted by the Chief Executive Officer of Customs (the CEO) under the authority granted by sections 269C, 269P, and 269SD(2) of the Customs Act 1901. The policy objective of this instrument is to ensure that the application of customs duty aligns with the updated tariff classifications, thereby preventing any anomalies in the application of customs duties due to legislative changes.
Scope and Application
The Tariff Concessions Revocation Instrument 171/2007, operating under the Customs Act 1901, pertains to the revocation and establishment of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument applies specifically to the goods that are subject to the TCOs, ensuring that the appropriate rates of customs duty are applied according to the updated tariff classifications. The scope of the Act is geographically extensive, covering the entire Commonwealth of Australia, as it is a federal law. The Act does not specify exclusions or thresholds but rather focuses on the procedural aspects of revoking and issuing TCOs in response to changes in the Customs Tariff Act 1995. The instrument reflects the amendments made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, indicating that any changes to the tariff classifications will be immediately implemented through new TCOs. The instrument's application is contingent upon the CEO’s satisfaction that the tariff classifications no longer apply, and any new TCOs will take effect from the same date.
Key Provisions
The Tariff Concessions Revocation Instrument 171/2007, under the Customs Act 1901, revokes Tariff Concession Order (TCO) number 0614308 and establishes a new TCO number 0614818, effective from 1 January 2007. This change is a direct response to amendments in the Customs Tariff Act 1995 as reflected in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The key provisions of this instrument are outlined in section 269SD(2) of the Customs Act 1901, which mandates the Chief Executive Officer of Customs to revoke an existing TCO if a change in tariff classification renders it inapplicable, and subsequently issue a new TCO that accurately reflects the updated tariff classification.
The obligations imposed by this Act on the parties and entities it governs are primarily concerned with ensuring that the classification of goods aligns with the current tariff schedule. Specifically, the Chief Executive Officer of Customs must ensure that any TCO reflects the accurate tariff classification as stipulated in the Customs Tariff Act. This entails a thorough review of the tariff classifications and prompt action to revoke and reissue TCOs as necessary. The Act also requires that the changes be communicated effectively, ensuring that stakeholders are aware of the new classifications and their implications for customs duties and related obligations.
Breaches of the provisions outlined in the Customs Act 1901 can result in significant consequences. While the explanatory statement does not detail specific offences under this instrument, it is known that non-compliance with customs regulations can lead to civil and criminal penalties. Under section 269 of the Customs Act 1901, penalties for non-compliance can include fines and, in severe cases, imprisonment. The maximum penalties for offences related to customs duties and tariff concessions can be substantial, reflecting the importance of accurate tariff classification in maintaining the integrity of the customs regime. It is imperative for entities involved in the import and export of goods to ensure their practices align with the requirements of the Act to avoid potential legal repercussions.