EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 19/2010
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 19/2010 was made on 8 October 2009. It revokes TCO 0500118 and makes TCO 0932724 & 0932727. The tariff classification has been changed from 8501.31.00 to 8504.40.90 & 8501.31.00 because of a tariff classification changes.
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. 19/2010 revoked 0500118 and made new TCOs 0932724 and 0932727 on 8 October 2009, with the Revocation date of effect as from 6 January 2005
Overview
The Customs Act 1901, amended by the Tariff Concessions Revocation Instrument 19/2010, establishes a scheme under which Tariff Concession Orders (TCOs) can be created and subsequently revoked by the Chief Executive Officer of Customs. This legislation addresses the need for flexibility in customs duty rates based on changes in tariff classifications, ensuring that tariff concessions are accurately aligned with current tariff schedules. The Instrument was enacted to address discrepancies in tariff classifications due to amendments in the Customs Tariff Act 1995 or decisions by the Administrative Appeals Tribunal, thereby ensuring that customs duties are applied correctly. The policy objective of this Instrument is to maintain the integrity of the tariff concession scheme by revoking outdated TCOs and issuing new ones that reflect current tariff classifications, thereby preventing any undue advantages or disadvantages to importers. The Instrument was made on 8 October 2009, and it became effective from 6 January 2005, demonstrating the legislative intent to swiftly adjust to changes in tariff classifications to maintain a fair and consistent customs duty regime.
Scope and Application
The Tariff Concessions Revocation Instrument 19/2010 is an amendment under the Customs Act 1901, specifically relating to the revocation of Tariff Concession Orders (TCOs) and the introduction of new TCOs. This instrument applies to goods that were previously subject to TCO 0500118 and now fall under the new TCOs 0932724 and 0932727. It affects entities and individuals engaged in the import and export of goods that were initially benefiting from the tariff concessions. The instrument operates nationally across Australia, encompassing all states and territories. The changes in tariff classifications, from 8501.31.00 to 8504.40.90 and 8501.31.00, are due to adjustments in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The instrument is effective from the day the old tariff classification ceased to apply, with specific commencement dates stipulated by the instrument itself. It is important to note that this legislative instrument operates despite certain retrospective prohibitions under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 19/2010 (referred to as the Instrument) operates under sections 269C, 269P, and 269SD of the Customs Act 1901. It primarily concerns the revocation and reissuance of Tariff Concession Orders (TCOs). Specifically, the Instrument revokes TCO 0500118 and issues new TCOs 0932724 and 0932727, effective from 8 October 2009. This revocation and reissuance were necessitated by changes in tariff classifications due to amendments in the Customs Tariff Act 1995. The new tariff classifications are 8504.40.90 and 8501.31.00, which differ from the previous classification of 8501.31.00.
Under the Customs Act, the Chief Executive Officer of Customs (CEO) has the authority to make and revoke TCOs if certain conditions are met. In this instance, the CEO must revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods, following a tariff amendment, a court decision, or written advice from a Customs officer. This ensures that the duty rates remain aligned with current tariff classifications.
The obligations imposed by this Instrument on relevant parties include ensuring compliance with the new tariff classifications. Importers, exporters, and other stakeholders must adhere to the new TCOs, which affect the customs duty rates applicable to the specified goods. They are required to update their records and systems to reflect the changes in tariff classifications and ensure that they are applying the correct duty rates.
Breaching the provisions of the Customs Act, including failing to comply with the new TCOs, can lead to serious consequences. Offences under the Customs Act may result in both civil and criminal penalties. For instance, knowingly importing goods in contravention of the Act can lead to fines and imprisonment. The specific penalties depend on the nature and severity of the offence but can include significant financial penalties and imprisonment terms as prescribed by the Act. The Instrument itself does not detail specific penalties but references the broader legal framework under which these penalties are determined.