EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 20/2006
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 20/2006 was made on 15 March 2006. It revokes TCO 0102023 and makes TCO 0605244. The tariff classification has been changed from 8418.69.00 to 8418.61.00 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. 20/2006 revoked 0102023 and made new TCO 0605244 on 15 March 2006.
Overview
The Tariff Concessions Revocation Instrument 2006, enacted on 15 March 2006, is a legislative instrument under the Customs Act 1901, aimed at addressing the need for tariff classification adjustments that may arise due to changes in the Customs Tariff Act 1995, court decisions, or written advice from Customs officers. This instrument was introduced to ensure the continued accuracy and effectiveness of tariff concessions on imported goods by revoking and replacing existing Tariff Concession Orders (TCOs) as necessary. The enactment of this instrument was authorised by the Parliament of Australia to allow the Chief Executive Officer of Customs to make the required adjustments without substantial alteration of existing arrangements, especially in cases where the changes are of minor or machinery nature. This instrument revokes TCO 0102023 and introduces TCO 0605244 due to a change in tariff classification, reflecting the policy objective of maintaining tariff accuracy and facilitating smooth customs operations.
Scope and Application
The Tariff Concessions Revocation Instrument 20/2006 applies to goods subject to Tariff Concession Orders (TCOs) under the Customs Act 1901. It specifically revokes TCO 0102023 and establishes a new TCO, 0605244, which adjusts the tariff classification of the goods from 8418.69.00 to 8418.61.00 due to a change in tariff classification. The instrument is applicable across the Commonwealth of Australia, affecting all entities and persons involved in the importation or classification of the specified goods. The revocation and establishment of the new TCO take effect from the day the tariff classification change came into force, in accordance with the provisions of the Customs Act. The instrument ensures compliance with the Act by addressing the change in tariff classification, thereby maintaining the integrity of the tariff concession scheme. No consultation was deemed necessary as the changes were considered minor and of a machinery nature.
Key Provisions
The Tariff Concessions Revocation Instrument 20/2006, made under the Customs Act 1901 (the Act), revokes Tariff Concession Order (TCO) 0102023 and replaces it with TCO 0605244, effective from 15 March 2006. This instrument operates pursuant to section 269SD(2) of the Act, which mandates the revocation of a TCO if, due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer, the tariff classification stated in the TCO no longer applies to the goods. This change was necessitated by a shift in tariff classification from 8418.69.00 to 8418.61.00.
The Instrument imposes specific obligations on the Chief Executive Officer of Customs (the CEO), requiring them to revoke the existing TCO and issue a new one if the tariff classification changes. This process ensures that the correct tariff rates are applied to the relevant goods, maintaining consistency and fairness in the application of customs duties. The CEO must act swiftly upon identifying that a tariff classification no longer applies to the goods as per the criteria set out in the Act.
Under the Customs Act 1901, failure to comply with the requirements of the Tariff Concessions Revocation Instrument could result in legal consequences. While the Explanatory Statement does not specify the exact penalties for non-compliance, breaches of customs regulations can lead to civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The specific penalties would be determined in accordance with the broader provisions of the Customs Act and any other relevant legislation. The revocation of a TCO and the issuance of a new one are crucial steps to ensure that the customs duties are correctly applied to the goods, maintaining the integrity of the customs system.