EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 20/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 20/2012 was made on
30 November 2011. This instrument revokes 0818848 of classification 7615.19.00 and makes new TCO 1132507 of classification 7615.10.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 20/2012 revokes TCO 0818848 and makes new TCO 1132507 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 20/2012 was enacted to address changes in tariff classifications due to amendments in the Customs Tariff Act 1995. This instrument revokes Tariff Concession Order 0818848 and introduces a new Tariff Concession Order 1132507, both taking effect from 1 January 2012. This action was necessary under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901, which provide the framework for the creation and revocation of Tariff Concession Orders by the Chief Executive Officer of Customs. The policy objective was to ensure that tariff classifications remain accurate and effective in light of updates to the Customs Tariff Act 1995, as mandated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. Given the minor nature of these changes, no consultation was deemed necessary.
Scope and Application
The Tariff Concessions Revocation Instrument 20/2012, made under the Customs Act 1901, applies to the revocation of Tariff Concession Orders (TCO) in respect of specific goods, particularly those affected by changes in tariff classifications as outlined in the Customs Tariff Act 1995. The instrument targets goods previously covered by TCO 0818848 and introduces a new TCO, 1132507, effective from 1 January 2012. The revocation and creation of these orders are triggered by the necessity to align with the amended tariff classifications, ensuring that the appropriate duty rates are applied to imported goods. This instrument affects entities involved in the importation of goods classified under the affected tariff numbers, as well as industries relying on these concessions for trade purposes. The instrument’s application is limited to the scope of the Customs Act 1901 and is specifically tied to the changes enacted by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. No exemptions or exclusions are noted in the instrument, and it operates within the Commonwealth jurisdiction. The instrument itself does not provide for subordinate instruments to extend or restrict its application.
Key Provisions
The Tariff Concessions Revocation Instrument 20/2012, made under the Customs Act 1901, primarily deals with the revocation of existing Tariff Concession Orders (TCOs) and the issuance of new ones. Section 269SD(2A) of the Act mandates that if the Chief Executive Officer of Customs (CEO) determines that tariff classifications in a TCO will no longer apply due to amendments in the Customs Tariff Act 1995, the CEO must revoke the existing TCO and issue a new one. This particular instrument revokes TCO 0818848 and replaces it with TCO 1132507, effective from 1 January 2012. This change aligns with the amendments in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
The Act imposes specific obligations on the CEO of Customs. Under section 269C, the CEO must ensure that a TCO is made if the application meets the core criteria, which includes the condition that no substitutable goods were produced in Australia on the day the application was lodged. Furthermore, section 269P outlines the process for making TCOs. When it comes to revoking and replacing TCOs, section 269SD(2A) requires the CEO to act upon recognising that amendments to the Customs Tariff Act 1995 will render the existing tariff classifications inapplicable. This ensures that the TCOs remain accurate and relevant to the current tariff classifications.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument can result in various consequences. While the explanatory statement does not detail specific offences or penalties, the Act generally provides for both civil and criminal penalties for non-compliance. Civil penalties can include fines and pecuniary penalties, while criminal penalties may involve imprisonment. The exact penalties depend on the specific nature of the breach and are outlined in the relevant sections of the Customs Act 1901. It is important for parties governed by the Act to adhere to its requirements to avoid these potential consequences.