Overview

The Tariff Concessions Revocation Instrument 172/2011 was enacted under the Customs Act 1901 to address the problem of tariff concessions that may no longer be justified due to changes in domestic production. The instrument was introduced to provide a mechanism for revoking tariff concession orders (TCOs) when a producer in Australia claims to produce substitutable goods, thereby challenging the original rationale for the concession. The instrument was made by the Chief Executive Officer of Customs, following a request from Fountain Products Pty Ltd to revoke TCO 0614591, which covered children's ride-on wheeled toys. The policy objective, as stated in the Act, is to ensure that tariff concessions remain appropriate by revoking them if they are no longer necessary due to the presence of domestic production of substitutable goods. This instrument came into effect on the day the revocation request was lodged, 12 March 2009.

Scope and Application

The Tariff Concessions Revocation Instrument 172/2011 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) that provide for reduced rates of customs duty on certain imported goods. This instrument applies to any entity or individual who is involved in the production of goods that are substitutable to those covered by a TCO, as well as to the CEO of Customs who is responsible for making and revoking TCOs. The instrument's jurisdictional reach is national, operating across Australia, as it pertains to the federal legislation of the Customs Act 1901. The revocation of TCO 0614591 for children's ride-on wheeled toys exemplifies the instrument's application, following a request by Fountain Products Pty Ltd, an Australian producer of substitutable goods. The revocation becomes effective from the date the request was lodged, demonstrating the instrument's capacity to nullify TCOs retroactively, notwithstanding the prohibitions set out in the Legislative Instruments Act 2003. There are no exclusions or exemptions stated in the explanatory statement, and the instrument does not establish any thresholds for its application. The scope of the Act may be extended or restricted through subordinate instruments as necessary.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument 172/2011 (the Instrument) are found in subsections 269SC(1) and (3) of the Customs Act 1901 (the Act). These sections require the Chief Executive Officer of Customs (the CEO) to make an order revoking a Tariff Concession Order (TCO) if they are satisfied that the applicant is a producer in Australia of substitutable goods in relation to the goods covered by the TCO, and that on the day of lodgement of the request, no substitutable goods were produced in Australia in the ordinary course of business. Specifically, the Instrument revokes TCO 0614591, which pertains to children's ride-on wheeled toys, following a request by Fountain Products Pty Ltd. The Act imposes several obligations and requirements on the parties involved. Under section 269SB of the Act, a person claiming to be a producer of substitutable goods in relation to the goods covered by a TCO can request the CEO to revoke the TCO. Furthermore, under subsection 269SC(1A), the CEO must publish a notice in a Gazette as soon as practicable after receiving a revocation request. This notice should include a statement that a request has been lodged and the full particulars of the TCO to which the request relates. The CEO must also ensure that they are satisfied with the applicant's status as a producer of substitutable goods in Australia and that the TCO would not have been made on the day of the revocation request if it were the day the original application for the TCO was lodged. In terms of consequences for non-compliance, the Act does not explicitly outline offences, penalties, or civil/criminal consequences for breach of the provisions. However, the revocation of a TCO could have significant financial implications for businesses that rely on the tariff concessions, potentially leading to increased costs and a less competitive market position. Additionally, the revocation of a TCO may result in the loss of preferential access to the Australian market for the goods covered by the TCO, which could negatively impact businesses and consumers. It is important for parties governed by the Act to be aware of these potential consequences and ensure compliance with the requirements of the Instrument and the Act.