Overview

The Tariff Concessions Revocation Instrument 173/2011 was enacted to address the issue of unused Tariff Concession Orders (TCOs) under the Customs Act 1901. This legislation, which was made by the Chief Executive Officer of Customs, revokes specific TCOs that have not been quoted in an import entry to secure a concessional rate of duty for the preceding two years. The purpose of this revocation is to ensure that tariff concessions are effectively utilised and to maintain the integrity of the tariff system by eliminating obsolete concessions. This revocation order came into effect on 12 August 2010, and it operates despite certain retrospective legislative restrictions to ensure its immediate application.

Scope and Application

The Tariff Concessions Revocation Instrument 173/2011 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) that have been inactive for a period of two years. This instrument applies to the concessions previously granted under the Act, and it is administered by the Chief Executive Officer of Customs. The revocation of TCOs is effective as of the day the CEO determines that the concessions have not been quoted in import entries to secure a concessional rate of duty within the stipulated timeframe. The geographical scope of this instrument is national, as it pertains to the Customs Act which has a Commonwealth reach, thus applying to all entities and individuals within Australia involved in the importation of goods. There are no exclusions, exemptions, or thresholds specified within the instrument itself, though the core criteria for the original establishment of TCOs include the absence of substitutable goods produced in Australia at the time of application. The revocation is retrospective, aligning with the provisions of section 269SD despite the constraints imposed by section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.

Key Provisions

The Tariff Concessions Revocation Instrument 173/2011, made under section 269SD of the Customs Act 1901, revokes specific Tariff Concession Orders (TCOs) that had been previously issued. The revocation takes effect from 12 August 2010, as specified in section 269SD(6) of the Act, which ensures that the revocation has legal effect despite any prohibitions under the Legislative Instruments Act 2003. The revocation is a direct result of the Chief Executive Officer of Customs (CEO) being satisfied that these TCOs had not been quoted in any import entry for securing a concessional rate of duty in the two years preceding the CEO's decision. The primary obligations under this instrument fall on the CEO, who must assess whether a TCO remains necessary. If the CEO determines that a TCO has not been utilised for two consecutive years, they are authorised to revoke it under section 269SD(1A) of the Customs Act 1901. This process ensures that the tariff concessions are only in place when they are actively being used to facilitate imports, thereby maintaining the efficiency and relevance of the customs duty regime. Failure to comply with the requirements set out in this instrument could lead to legal consequences. While the explanatory statement does not explicitly mention specific penalties, breaches of the Customs Act 1901, including non-compliance with revoked TCOs, could result in penalties as prescribed by the Act. These may include fines or other sanctions as determined by the relevant authorities. The absence of consultation noted in the explanatory statement suggests that the revocation was deemed to have minimal impact on businesses, reinforcing the notion that the revocation was based on inactivity rather than a sudden policy change.