EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 185/2011
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(1A) of the Act provides that the CEO may revoke a TCO if he or she is satisfied on any day that a TCO is no longer required because, in the 2 years preceding that day, the TCO has not been quoted in an import entry to secure a concessional rate of duty.
Instrument
Tariff Concessions Revocation Instrument No. 185/2011 was made on 27 July 2011. It revokes TCO 0604744 as the CEO is satisfied that the TCO has not been used in the preceding 2 years.
Consultation
No consultation was undertaken. Since the TCO has not been used in the preceding 2 years, the revocation of the TCO will not have an effect on business.
Commencement
Subsection 269SD(1A) provides that the order revoking the TCO has effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding 2 years.
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. 185/2011 revoked TCO 0604744 on 27 July 2011.
Overview
The Tariff Concessions Revocation Instrument No. 185/2011, enacted on 27 July 2011, addresses the issue of unused Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was introduced to ensure that tariff concessions are only applicable to goods that are actually imported, thereby preventing unnecessary concessions that could potentially distort trade practices. The revocation of TCO 0604744, which had not been utilised for two years, exemplifies the intent to maintain the integrity of the tariff concession scheme by removing orders that do not contribute to actual import activities. The Customs Act 1901, enacted by the Australian Parliament, provides the framework for these tariff concessions and their subsequent revocation by the Chief Executive Officer of Customs, if deemed unnecessary. This revocation instrument aligns with the policy objective of efficiently managing tariff concessions to support fair and effective trade practices within Australia.
Scope and Application
The Customs Act 1901, specifically under Part XVA, provides a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (CEO). These orders apply lower rates of customs duty to particular goods and are contingent upon the absence of substitutable goods being produced in Australia at the time of application. The application of the Act extends to any goods subject to a TCO, with the revocation of such orders being a process overseen by the CEO, based on the condition that a TCO has not been quoted in an import entry for a concessional rate of duty over the preceding two years. The geographic and jurisdictional reach of this legislation is national, as it applies throughout Australia. There are no stated exclusions or exemptions within the primary text of the Act regarding the revocation of TCOs, although the application and scope of the Act may be further defined through subordinate instruments. The Tariff Concessions Revocation Instrument No. 185/2011, made on 27 July 2011, revoked TCO 0604744 based on the CEO’s satisfaction that the TCO had not been utilised in the preceding two years, thereby illustrating the Act's application in practice.
Key Provisions
The Tariff Concessions Revocation Instrument No. 185/2011, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0604744. The decision to revoke was based on the Chief Executive Officer of Customs (CEO) being satisfied that the TCO has not been quoted in an import entry to secure a concessional rate of duty in the preceding two years (sections 269C, 269P, and 269SD(1A) of the Act). The CEO’s satisfaction that the TCO is no longer required triggers the revocation, which took effect from the day the CEO became satisfied (subsection 269SD(1A) and (6)). This revocation aligns with the scheme under which TCOs can be made and revoked, ensuring that tariff concessions are only applied when genuinely needed.
The Customs Act 1901 imposes specific obligations on the CEO regarding the administration of tariff concessions. The CEO must ensure that a TCO is made if the application meets the core criteria, specifically when no substitutable goods are produced in Australia on the day the application is lodged (section 269C). Conversely, the CEO is required to revoke a TCO if, within any two-year period, it has not been quoted in an import entry to secure a concessional rate of duty (section 269SD(1A)). This dual responsibility ensures that tariff concessions are dynamically managed according to the production and importation activities in Australia.
Failure to comply with the provisions of the Customs Act 1901 regarding tariff concessions can lead to civil and criminal consequences. While the explanatory statement does not detail specific offences under this revocation, the general penalties for breaches of the Customs Act can include fines and imprisonment. The maximum penalties for customs-related offences can vary widely depending on the severity and intent of the breach but generally include substantial fines and imprisonment terms that reflect the seriousness of the offence. Compliance with the Act is critical to avoid these potential penalties.