EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 18/2009
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:
− because of an amendment of the Customs Tariff Act 1995; or
− having regard to a decision of a court of the Administrative Appeals Tribunal; or
− having regard to written advice on the matter given by an officer of Customs;
the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO has not, with effect from a particular day, applied 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 the revocation.
Instrument
Tariff Concessions Revocation Instrument No 18/2009 was made on 25 August 2008. It revokes TCO 0405650 and makes TCO 0827462 The tariff classification has been changed from 7315.11.00 to 8431.49.90 because of a tariff classification change.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the order revoking the TCO has effect from the day on which the tariff classification did not apply to the goods. Further the new TCO has effect from the revocation. Subsection 269SD(4) provides that the day may be the day on which the old TCO came into force or a later day.
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. 18/2009 revoked 0405650 and made new TCO 0827462 on 25 August 2008, with the Revocation date of effect as from 11 June 2004
Overview
The Tariff Concessions Revocation Instrument 18/2009 was enacted to address discrepancies in tariff classifications under the Customs Act 1901. The instrument was introduced to ensure that the tariff concessions provided to specific goods remain accurate and reflect any amendments to the Customs Tariff Act 1995 or relevant court decisions. The Customs Act 1901, enacted by the Australian Parliament, provides a framework for tariff concessions to be applied to goods, with the Chief Executive Officer of Customs having the authority to make and revoke these concessions. The Tariff Concessions Revocation Instrument 18/2009 was made on 25 August 2008, revoking TCO 0405650 and establishing TCO 0827462 in response to a change in tariff classification. The revocation was effective from 11 June 2004, the date when the tariff classification change took effect. This instrument was issued without consultation as the changes were considered minor and of a machinery nature, not substantially altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 18/2009, made under the Customs Act 1901, specifically addresses the revocation and establishment of Tariff Concession Orders (TCOs) within the Australian customs framework. This instrument applies to entities and individuals who import goods that are subject to the tariff concessions outlined in the TCOs. The geographic reach of this Act is national, affecting all importers across Australia. The instrument revokes TCO 0405650 and introduces TCO 0827462, with the changes taking effect from the date the old TCO came into force, which was 11 June 2004. This revocation and creation of new orders are due to a change in tariff classification, as mandated by the Act. The instrument does not extend or restrict its application through subordinate instruments, focusing solely on the outlined tariff changes. Notably, the Act specifies that section 269SD has effect despite certain prohibitions on retrospective legislative instruments, ensuring that the changes apply from the specified commencement date.
Key Provisions
The Tariff Concessions Revocation Instrument 18/2009 (F2009L01709) revokes Tariff Concession Order (TCO) 0405650 and establishes a new TCO, 0827462, under the Customs Act 1901. This instrument operates to amend the tariff classification for specific goods, reflecting changes in the Customs Tariff Act 1995, or decisions by the Administrative Appeals Tribunal, or advice from Customs officers. The changes are made pursuant to sections 269C, 269P, and 269SD of the Customs Act, which provide the legal framework for the creation and revocation of TCOs.
Under the Customs Act, the Chief Executive Officer of Customs (CEO) is tasked with administering tariff concessions to ensure that customs duty is levied appropriately based on the availability of local production of goods. If the CEO determines that the tariff classification specified in an existing TCO no longer applies to the goods due to changes in tariff classification, a court decision, or advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. The Tariff Concessions Revocation Instrument 18/2009 follows this procedure by revoking TCO 0405650 and issuing TCO 0827462 effective from 11 June 2004, the date when the original tariff classification ceased to apply.
Entities and parties affected by these changes must comply with the new tariff classifications as specified in TCO 0827462. This includes ensuring that the correct customs duty is applied to the goods, as well as updating any relevant documentation and records to reflect the new tariff classification. Failure to adhere to the new TCO may result in non-compliance with the Customs Act and could lead to penalties or other legal consequences.
The Customs Act provides for various civil and criminal penalties for non-compliance with its provisions. Offences under the Act can lead to substantial fines, imprisonment, or both, depending on the severity of the breach. For instance, section 141 of the Customs Act imposes penalties for incorrect classification of goods, which can include fines of up to $22,200 for individuals and $111,000 for corporations, as well as potential criminal charges. It is essential for all affected parties to ensure strict compliance with the new TCO to avoid these consequences.