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.
Overview
The Tariff Concessions Revocation Instrument 18/2012 was enacted to address discrepancies in tariff classifications arising from amendments to the Customs Tariff Act 1995. This instrument revokes Tariff Concession Order (TCO) 0803627 and introduces a new TCO 1132504, both of which were necessitated by changes to the Customs Tariff Act 1995 contained within the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The Customs Act 1901, under which this instrument operates, provides the framework for the establishment and revocation of TCOs, allowing for the application of lower rates of customs duty to specific goods. The enacting body responsible for this instrument is the Chief Executive Officer of Customs, who must ensure that the tariff classifications stated in TCOs remain applicable to the relevant goods. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the classifications and concessions remain aligned with the most current tariff amendments. The changes take effect from 1 January 2012, reflecting the timing of the amendments in the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 18/2012, made under the Customs Act 1901, applies to entities and individuals involved in the importation of goods that were previously subject to Tariff Concession Orders (TCOs). Specifically, this instrument revokes TCO 0803627 and replaces it with TCO 1132504, reflecting changes in tariff classifications necessitated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. This legislative instrument operates within the Commonwealth jurisdiction and affects all entities and individuals engaged in the importation of goods within Australia. The revocation and the issuance of new TCOs are effective from 1 January 2012, as mandated by the Customs Act 1901, and the new TCOs apply to the relevant goods from that date. There are no exclusions or exemptions specified in the instrument, and no consultation was required due to the minor nature of the changes.
Key Provisions
The Tariff Concessions Revocation Instrument 18/2012 operates under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901 to revoke existing Tariff Concession Orders (TCOs) and replace them with new ones. Specifically, section 269C outlines the process for making TCOs, while section 269P details the conditions under which a TCO can be revoked. The critical provision in this context is section 269SD(2A), which mandates the revocation of a TCO and the issuance of a new one if the tariff classification of the goods changes due to an amendment in the Customs Tariff Act 1995. This instrument revokes TCO 0803627 of classification 7615.19.00 and introduces new TCO 1132504 of classification 7615.10.00, reflecting the changes from the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, effective from 1 January 2012.
The Act imposes specific obligations on the Chief Executive Officer of Customs (CEO). Under section 269SD(2A), the CEO must make an order to revoke a TCO if satisfied that the tariff classification will no longer apply to the goods due to an amendment in the Customs Tariff Act 1995. This order must be made on the day the CEO determines that the amendment will take effect. Furthermore, the CEO is required to issue a new TCO for the same goods with the updated classification. This ensures that the duty rates applied to the goods remain consistent with the updated tariff classifications.
Failure to comply with the requirements of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 18/2012 can result in legal consequences. The Act does not specify particular offences or penalties related to the revocation of TCOs in this context. However, breaches of the Customs Act 1901, in general, may result in civil or criminal penalties. These penalties can include fines and, in some cases, imprisonment. The exact penalties depend on the specific breach and are determined in accordance with the provisions of the Customs Act 1901 and any applicable regulations or subsidiary legislation.