EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 19/2006
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 19/2006 was made on 13 March 2006. It revokes TCO 0516387 and makes TCO 0604920. The tariff classification has been changed from 8708.39.99 to 8708.31.99 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. 19/2006 revoked 0516387 and made new TCO 0604920 on 13 March 2006.
Overview
The Tariff Concessions Revocation Instrument 19/2006, enacted on 13 March 2006, is a legislative instrument that addresses the need to revoke and replace Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was introduced to manage the changes in tariff classifications that impact the application of reduced customs duty rates on certain goods. The instrument was enacted by the Chief Executive Officer of Customs in accordance with sections 269C, 269P, and 269SD of the Customs Act 1901, which empower the CEO to make and revoke TCOs based on specific criteria and changes in tariff classifications. The policy objective of this instrument is to ensure that the tariff classification stated in a TCO accurately reflects the current customs tariff, thereby maintaining the integrity and effectiveness of the tariff concession scheme.
The revocation of TCO 0516387 and the creation of TCO 0604920 was necessitated by a change in the tariff classification of the goods, from 8708.39.99 to 8708.31.99. This change, in turn, required the revocation of the existing TCO and the issuance of a new one to align with the updated tariff classification. The instrument's commencement is governed by subsection 269SD(2), which specifies that the revocation and new TCO take effect from the day the tariff classification no longer applied to the goods. This process ensures that the customs duty rates are correctly applied, reflecting the current tariff structure.
Scope and Application
The Tariff Concessions Revocation Instrument 19/2006 operates under the Customs Act 1901 and specifically pertains to the revocation and issuance of Tariff Concession Orders (TCOs). The Act applies to entities and individuals engaged in the importation of goods that are subject to customs duties, where the goods in question are subject to a TCO. This instrument applies across the Commonwealth of Australia and impacts all entities and persons involved in the importation of goods that were previously covered by the revoked TCO 0516387 and now by the new TCO 0604920. The geographic and jurisdictional reach of this legislation is national, affecting all states and territories within Australia. The revocation and issuance of TCOs are triggered by changes in tariff classifications, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. The instrument does not apply to goods that are not subject to a TCO or where the tariff classification has not been affected by the changes specified in the Act. The instrument does not include any exclusions or exemptions, and its application is precise and governed by the conditions outlined in the Customs Act 1901. The commencement of the revocation and new TCO is effective from the date specified in the Instrument, aligning with the changes in tariff classifications.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 19/2006 are found under sections 269C, 269P, 269SD(2), and 269SD(6) of the Customs Act 1901. Section 269C and 269P outline the criteria for establishing a Tariff Concession Order (TCO), which provides for a lower rate of customs duty on specified goods. Section 269SD(2) mandates the revocation of a TCO if certain conditions are met, such as a change in tariff classification due to an amendment of the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. Section 269SD(6) ensures that the revocation takes effect despite any prohibition on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003.
The obligations imposed by the Tariff Concessions Revocation Instrument 19/2006 primarily concern the Chief Executive Officer of Customs (CEO). The CEO is required to monitor the tariff classifications of goods covered by TCOs and to revoke any order if the classification changes. Additionally, the CEO must issue a new TCO reflecting the updated tariff classification. The CEO’s actions must be guided by any amendments to the Customs Tariff Act 1995, decisions from the Administrative Appeals Tribunal, or advice from Customs officers. These obligations ensure that the customs duties applied to goods remain consistent with their current tariff classifications.
Failure to comply with the requirements of the Tariff Concessions Revocation Instrument 19/2006 may result in legal consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act 1901 can generally lead to civil or criminal penalties. Civil penalties can include fines and the recovery of unpaid duties. Criminal penalties can include imprisonment, fines, or both, depending on the severity of the breach. The exact penalties would be determined based on the specific provisions of the Customs Act 1901 and other applicable laws.