EXPLANATORY STATEMENT

Tariff Concessions Revocation Instrument 18/2012

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 18/2012 was made on

30 November 2011.  This instrument revokes 0803627 of classification 7615.19.00 and makes new TCO 1132504 of classification 7615.10.00.  The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.

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 18/2012 revokes TCO 0803627 and makes new TCO 1132504 in its place, with effect from 1 January 2012.