EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 20/2010
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 20/2010 was made on 2 September 2009. It revokes TCO 0910964 and makes TCO. 0932294 The tariff classification has been changed from 8479.90.00 to 8474.90.00 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. 20/2010 revoked 0910964 and made new TCO 0932294 on 2 September 2009, with the Revocation date of effect as from 1 April 2009
Overview
The Tariff Concessions Revocation Instrument 20/2010, enacted in 2009, addresses the need for adjustments to tariff concessions under the Customs Act 1901 to ensure alignment with updated tariff classifications. This legislative instrument was introduced by the Chief Executive Officer of Customs, operating under the authority granted by Part XVA of the Customs Act 1901, which allows for the creation and revocation of Tariff Concession Orders (TCOs). The primary policy objective behind this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the correct tariff classification is applied to goods, thus preventing any discrepancies due to changes in tariff classifications. The instrument revokes Tariff Concession Order 0910964 and issues a new order, 0932294, reflecting the updated tariff classification necessitated by changes in the Customs Tariff Act 1995. This minor adjustment was deemed not to require consultation, as it did not significantly alter existing arrangements. The revocation and new order took effect from the date the original tariff classification ceased to apply to the goods, ensuring a seamless transition within the tariff concession framework.
Scope and Application
The Tariff Concessions Revocation Instrument 20/2010 operates within the framework of the Customs Act 1901, specifically addressing the revocation and replacement of Tariff Concession Orders (TCOs) in response to changes in tariff classification. This instrument applies to goods that were previously subject to a TCO and are now subject to a revised tariff classification, as determined by the Chief Executive Officer of Customs. The instrument's jurisdictional reach is governed by the Commonwealth, affecting importers and exporters of the relevant goods within Australia. It does not apply to goods not covered by the specified TCOs or those that do not undergo a change in tariff classification. The instrument effectively revokes TCO 0910964 and issues a new TCO, 0932294, effective from the day the previous classification ceased to apply to the goods. The changes are effective as of 1 April 2009, with the revocation order coming into force on 2 September 2009, illustrating the instrument's capacity to issue retrospective amendments despite legislative constraints.
Key Provisions
The Tariff Concessions Revocation Instrument 20/2010, under the Customs Act 1901, primarily serves to revoke an existing Tariff Concession Order (TCO) and establish a new TCO. Section 269C and 269P outline the criteria for creating a TCO, while section 269SD(2) mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if the tariff classification stated in the TCO no longer applies to the goods due to a change in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. The instrument revokes TCO 0910964 and introduces TCO 0932294, reflecting a tariff classification change from 8479.90.00 to 8474.90.00.
The Act imposes specific obligations on the CEO. Firstly, the CEO must monitor the tariff classification of goods under existing TCOs and take action if any changes are identified. Secondly, upon determining that the tariff classification has changed, the CEO must promptly make an order to revoke the relevant TCO and issue a new TCO with the updated classification. This ensures that the duty rates applied to the goods remain aligned with the current tariff regulations.
Failure to comply with the provisions of the Customs Act 1901 can result in legal consequences. Although specific offences and penalties are not detailed in the explanatory statement, breaches of the Act generally lead to civil or criminal penalties. These may include fines, imprisonment, or both, depending on the nature and severity of the breach. The exact penalties would be determined by the relevant courts when enforcing the Act, taking into account the specific circumstances of each case.
The instrument revokes TCO 0910964 and introduces TCO 0932294, effective from 2 September 2009. However, the revocation date for TCO 0910964 is 1 April 2009, as specified in the instrument. This temporal distinction ensures that the change in tariff classification is applied retroactively to the date when the original classification no longer applied. The legislative framework allows for such retrospective effect despite the prohibitions in section 12 of the Legislative Instruments Act 2003, ensuring that the new TCO is effective from the date of revocation.