Overview

The Customs Act 1901, enacted by the Australian Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be made and revoked by the Chief Executive Officer of Customs. These orders provide for lower rates of customs duty on specific goods, contingent upon certain criteria being met. The Tariff Concessions Revocation Instrument No. 199/2011, made on 29 July 2011, revokes TCO 0613541 as the CEO determined it had not been used in the preceding two years. This revocation aligns with the provisions under sections 269C, 269P, and 269SD(1A) of the Customs Act, ensuring that TCOs are only in effect when they are actively used to secure a concessional rate of duty. The revocation is effective from the day the CEO becomes satisfied that the TCO has not been utilised, as stipulated in subsection 269SD(1A), and operates notwithstanding section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.

Scope and Application

The Tariff Concessions Revocation Instrument No. 199/2011 applies to Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, it targets TCO 0613541, revoking it due to inactivity in the preceding two years. The revocation is authorised by subsection 269SD(1A) of the Customs Act 1901, which allows the Chief Executive Officer of Customs to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty within the specified period. The revocation is effective from the day the CEO becomes satisfied that the TCO has not been used, in this case, 27 July 2011. It is important to note that the revocation has no effect on business as the TCO has not been utilised in the preceding two years. The instrument also operates despite the prohibition on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003, as provided by subsection 269SD(6) of the Customs Act 1901.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument No. 199/2011 (the Instrument) are Section 269C and Section 269P of the Customs Act 1901 (the Act). Section 269C allows for the creation of Tariff Concession Orders (TCOs) under certain conditions, specifically when no substitutable goods are produced in Australia in the ordinary course of business. Section 269P outlines the criteria that must be met for a TCO to be made. Section 269SD(1A) provides the authority for the Chief Executive Officer of Customs (the CEO) to revoke a TCO if it has not been quoted in an import entry to secure a concessional rate of duty within the preceding two years. The Instrument revokes TCO 0613541 under this provision. The Instrument imposes specific obligations and requirements on the CEO. The CEO must be satisfied that a TCO has not been used in the preceding two years before revoking it under Section 269SD(1A) of the Act. Additionally, the CEO must ensure that the revocation takes effect from the day they become satisfied with the inactivity of the TCO. The Instrument explicitly states that it operates despite Section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments, ensuring the revocation is legally sound. Breaching the provisions of the Customs Act 1900, including those related to the revocation of TCOs, can lead to significant consequences. While the explanatory statement does not specify penalties for breaching the Act, generally, the Act contains provisions for both civil and criminal penalties. For example, Section 233 of the Act may impose civil penalties for breaches, while Section 234 allows for criminal penalties, including fines and imprisonment. The maximum penalties can vary depending on the nature and severity of the breach, but they can include substantial fines and imprisonment terms.