EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 175/2007
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(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 175/2007 was made on
20 August 2007. This instrument revokes 0614075 of classification 3808.92.00 and makes new TCO 0614816 of classification 3808.92.00. 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 175/2007 revokes TCO 0614075and makes new TCO’s 0614816 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 175/2007, enacted in 2007, addresses the need to adjust tariff concession orders under the Customs Act 1901 to reflect changes in the Customs Tariff Act 1995. This instrument was developed in response to the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which necessitated modifications to existing tariff classifications. The Tariff Concessions Revocation Instrument 175/2007 was made by the Chief Executive Officer of Customs, in line with the authority granted under sections 269C, 269P and 269SD(2A) of the Customs Act 1901. The objective of this instrument is to ensure that the application of customs duty remains aligned with the most current tariff classifications, thereby maintaining the integrity of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 175/2007 pertains to the Customs Act 1901 and applies to the revocation and creation of Tariff Concession Orders (TCOs) as necessitated by amendments to the Customs Tariff Act 1995. This instrument specifically targets the goods classified under 3808.92.00, revoking the existing TCO 0614075 and establishing a new TCO 0614816. The revocation and creation of these orders are the responsibility of the Chief Executive Officer of Customs, who must act when satisfied that the tariff classifications will no longer apply to the specified goods due to legislative changes. This act affects importers, exporters, and other entities involved in the importation and exportation of goods subject to these tariff concessions. The instrument’s geographic reach is aligned with the Commonwealth of Australia, ensuring that the changes in tariff classifications and the subsequent revocation and establishment of TCOs are uniformly applied across the nation. The scope of this legislation is restricted to the specific changes outlined in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. No consultation was required for this instrument as it was deemed to be of a minor and machinery nature, not substantially altering existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 175/2007, made under the Customs Act 1901 (the Act), focuses on the revocation and replacement of a Tariff Concession Order (TCO) to reflect changes in tariff classifications. Section 269SD(2A) of the Act mandates that the Chief Executive Officer of Customs (the CEO) must revoke a TCO and issue a new one if there is an amendment in the Customs Tariff Act 1995 that affects the tariff classification of the goods covered by the TCO. In this specific case, Instrument 175/2007 revokes TCO 0614075 and replaces it with TCO 0614816, effective from 1 January 2007.
This legislation imposes certain obligations on the CEO. Specifically, the CEO must ensure that a TCO remains accurate and applicable to the goods it covers. If the CEO is satisfied that a tariff classification will no longer apply to goods, as per the changes in the Customs Tariff Act 1995, they must make an order to revoke the existing TCO and issue a new one. This requirement ensures that the duty rates on the goods remain correctly aligned with their current tariff classifications.
Failure to comply with the provisions of the Act can result in civil or criminal consequences. For example, if a TCO is not properly revoked or a new one is not issued in accordance with the Act, it could lead to incorrect duty rates being applied, potentially resulting in financial penalties or legal action. Although the explanatory statement does not detail specific penalties, breaches of customs regulations generally attract significant fines and possible imprisonment under the Customs Act 1901 and related legislation. The exact penalties can vary based on the severity and intent behind the breach.