EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 18/2006
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 the CEO is satisfied that, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 18/2006 was made on 8 March 2006. It revokes TCO 0516773 and makes TCO 0604839 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
Subsection 269SD(6) provides that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concessions Revocation Instrument No.18/2006 revoked 0516773 and made new TCO 0604839 on 8 March 2006.
Overview
The Tariff Concessions Revocation Instrument No. 18/2006, enacted on 8 March 2006, addresses a specific issue within the Customs Act 1901 concerning a transcription error in a Tariff Concession Order (TCO). This instrument was introduced by the Chief Executive Officer of Customs under sections 269C, 269P, and 269SD of the Customs Act 1901, and its primary objective is to correct an error in the description of goods and their tariff classification, ensuring the application of the correct rate of customs duty. The instrument revokes the existing TCO 0516773 and establishes a new TCO 0604839 to rectify the identified error. Given the minor nature of the change, no consultation was deemed necessary. The revocation of the old TCO and the establishment of the new TCO both take effect from the day the original TCO came into force, with the instrument operating despite certain retrospective prohibitions under the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument No 18/2006, made under the Customs Act 1901, applies to the revocation of Tariff Concession Order (TCO) 0516773 and the issuance of a new TCO 0604839 due to a transcription error. This instrument pertains to goods subject to a TCO where a mistake was identified in the description or tariff classification, impacting the application of a lower rate of customs duty. The instrument is executed by the Chief Executive Officer of Customs and affects those importing goods that were originally covered by TCO 0516773, now superseded by TCO 0604839. The geographical scope of this legislation is national, as it operates under the Commonwealth jurisdiction of the Customs Act 1901. The instrument does not specify exclusions or exemptions beyond the correction of the identified transcription error, and its application is limited to the specific goods and orders mentioned. Any further details or extensions of application are left to the discretion of the CEO as provided under the Act.
Key Provisions
The Tariff Concessions Revocation Instrument 18/2006 (Instrument) operates under sections 269C, 269P, and 269SD of the Customs Act 1901. The Instrument revokes Tariff Concession Order (TCO) 0516773 and establishes TCO 0604839 due to a transcription error. This means that the previously applicable lower rate of customs duty for the goods described in TCO 0516773 is no longer in effect, and a new rate is established in TCO 0604839, which corrects the error.
The obligations imposed by this Instrument on the parties involved primarily concern the accurate description of goods subject to a TCO. Section 269SD(2) of the Customs Act mandates that if the Chief Executive Officer of Customs (CEO) identifies a transcription error in the description of goods or their tariff classification, they must revoke the erroneous TCO and issue a corrected one. This ensures that the terms under which goods are imported remain clear and legally sound.
Breaching the provisions of the Customs Act, including failing to correct transcription errors in TCOs, can have significant consequences. Although the explanatory statement does not detail specific offences or penalties, it is known that violations of the Customs Act can lead to civil and criminal penalties. Such penalties may include fines and imprisonment, depending on the severity of the breach and the specific provisions of the Act that are contravened. The maximum penalties can vary widely, but in general, they are intended to enforce compliance and uphold the integrity of the customs duty regime.