EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 18/2010
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 18/2010 was made on 18 November 2009. It revokes TCO 0902070 and makes TCO 0943338. The tariff classification has been changed from 5603.14.00 to 6307.90.40 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. 18/2010 revoked 0902070 and made new TCO 0943338 on 18 November 2009, with the Revocation date of effect as from 18 November 2009
Overview
The Tariff Concessions Revocation Instrument 18/2010, made under the Customs Act 1901, addresses the need to adjust tariff concessions in response to changes in tariff classifications or other specified circumstances. This instrument was enacted to ensure that tariff concessions remain aligned with current tariff classifications and administrative decisions, thus maintaining the integrity and effectiveness of the tariff concession scheme. The instrument was issued by the Chief Executive Officer of Customs, following the provisions of sections 269C, 269P, and 269SD of the Customs Act, which empower the CEO to make and revoke Tariff Concession Orders (TCOs) based on specific criteria. The primary objective is to ensure that the tariff classification stated in a TCO accurately reflects the goods it pertains to, thereby preventing any discrepancies that could arise from changes in the Customs Tariff Act 1995 or judicial decisions. The instrument revokes TCO 0902070 and establishes new TCO 0943338, effective from 18 November 2009, reflecting a change in tariff classification due to an amendment in tariff coding.
Scope and Application
The Tariff Concessions Revocation Instrument 18/2010 pertains to the Customs Act 1901, specifically focusing on the revocation and issuance of Tariff Concession Orders (TCOs). The Act applies to individuals and entities involved in importing goods subject to these concessions, thereby affecting their duty obligations. This instrument, made under sections 269C and 269P of the Customs Act, applies nationally across Australia, ensuring uniformity in the application of customs tariffs. The revocation of TCO 0902070 and the establishment of TCO 0943338 were necessary due to changes in tariff classifications, reflecting adjustments in the Customs Tariff Act 1995. The instrument was enacted without consultation, as the changes were deemed minor and of a machinery nature, not substantially altering existing arrangements. The revocation and new order took effect from 18 November 2009, aligning with the day the tariff classification ceased to apply, in accordance with the provisions of the Customs Act and the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 18/2010 under the Customs Act 1901 (the Act) (section 269SD(2)) revokes Tariff Concession Order (TCO) 0902070 and establishes a new TCO, 0943338, due to a change in tariff classification. This change was necessitated by an amendment to the Customs Tariff Act 1995, and it came into effect on 18 November 2009. The old TCO was revoked and the new TCO was established on the same date. The revised tariff classification now stands at 6307.90.40 instead of the previous 5603.14.00.
The Act imposes specific obligations on the Chief Executive Officer of Customs (the CEO) in administering these tariff concessions. According to section 269SD(2), the CEO must revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods due to changes in the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or written advice from a Customs officer. Following the revocation, the CEO is required to issue a new TCO that correctly reflects the updated tariff classification.
Failure to comply with the requirements set out in the Customs Act 1901 can result in both civil and criminal consequences. Under section 269SD(6), the making of the revocation order is permissible despite the general prohibition on retrospective legislative instruments as outlined in section 12 of the Legislative Instruments Act 2003. While the explanatory statement does not specify particular offences or penalties for non-compliance with the tariff concessions, breaches of the Customs Act 1901 generally can lead to fines and imprisonment. For instance, unauthorised importation or exportation of goods can result in penalties that include fines of up to $162,000 for individuals and $810,000 for corporations, alongside or in lieu of imprisonment for up to five years.