Tariff Concession Revocation Order 203/2011

Administered by Attorney-General's Department

Legislation au F2012L00103 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Tariff Concessions Revocation Instrument 203/2011

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.

Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.

Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:

               that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and

               that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.

Enerka Apex Belting Pty Ltd requested that the CEO revoke TCO 0611943 which covers conveyor belts.

Instrument

Tariff Concessions Revocation Instrument No. 203/2011 was made on 4 July 2011. It revokes TCO 0611943 as the CEO is satisfied that Enerka Apex Belting Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.

Consultation

Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.

Commencement

Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged.  Subsection 239SD(8) provides, in part, that subsection 269SC(6) 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. 203/2011, TCO 0611943, was revoked on 4 July 2011 with the Revocation date of effect as from 12 May 2011.

 

 

 

Overview

The Tariff Concessions Revocation Instrument 203/2011, enacted in 2011, is a legislative instrument that revokes Tariff Concession Order 0611943 under the Customs Act 1901. This revocation was initiated by Enerka Apex Belting Pty Ltd, a producer in Australia, who requested the revocation of the tariff concession concerning conveyor belts. The Customs Act 1901 provides a framework for the creation and revocation of Tariff Concession Orders, allowing for reduced customs duties on specific goods provided no substitutable goods are produced in Australia. The Chief Executive Officer of Customs must consider requests to revoke such orders if the conditions outlined in the Act are met, specifically if the applicant is a producer of substitutable goods and if the TCO would not have been issued had the request been made on the day the original application was lodged. The revocation aims to ensure that tariff concessions are only granted where genuinely no domestic alternatives exist. The Tariff Concessions Revocation Instrument 203/2011 was made on 4 July 2011, and it revokes TCO 0611943 as the CEO determined that Enerka Apex Belting Pty Ltd is a producer of substitutable goods and that the concession would not have been granted under current conditions. The revocation is effective from 12 May 2011, the date the revocation request was lodged, and the CEO was mandated to publish the details of this revocation in a Gazette as soon as practicable. This legislative action underscores the policy objective of maintaining fair trade practices by ensuring tariff concessions are only applied when there is no domestic production of equivalent goods.

Scope and Application

The Tariff Concessions Revocation Instrument 203/2011 is a legislative instrument made under the Customs Act 1901, which governs the application and revocation of Tariff Concession Orders (TCOs). The Act applies to individuals and entities involved in the production and importation of goods, particularly focusing on the circumstances under which a TCO can be revoked. The revocation of TCO 0611943, which covers conveyor belts, was made pursuant to the request by Enerka Apex Belting Pty Ltd, who claimed to be a producer of substitutable goods in Australia. The scope of this instrument extends to the revocation of tariff concessions for specific goods when the Chief Executive Officer of Customs is satisfied that local production of substitutable goods exists and that the TCO would not have been granted had the current circumstances existed at the time of the initial application. This instrument has a national reach within Australia, applying across all states and territories, and operates under the authority granted by the Customs Act 1901. The revocation is effective from the date the request was lodged, notwithstanding the general prohibitions against retrospective legislative instruments.

Key Provisions

The Tariff Concessions Revocation Instrument 203/2011 revokes Tariff Concession Order (TCO) 0611943, which concerns conveyor belts. This revocation follows a request by Enerka Apex Belting Pty Ltd, who claimed to be a producer of substitutable goods. According to the Customs Act 1901, specifically sections 269C, 269P, and 269SB, a TCO is revoked if the Chief Executive Officer of Customs (CEO) is satisfied that there are now substitutable goods produced in Australia, which were not present when the TCO was originally made, and that the CEO would not have made the TCO under current conditions. The Act imposes several obligations and requirements on the parties involved. Under section 269SC(1) and (3), the CEO must consider whether the applicant is a producer of substitutable goods and whether the TCO would have been made if the request for revocation had been lodged on the day the original TCO application was made. If the CEO is satisfied with the conditions, the TCO is revoked. Furthermore, as per section 269SC(1A), the CEO must publish a notice in a Gazette after receiving a request for revocation, detailing the request and the specifics of the TCO. This requirement ensures transparency and allows for public awareness of the changes in tariff concessions. In terms of consequences, the Customs Act 1901 does not explicitly outline specific offences, penalties, or consequences for breaches related to the revocation of a TCO. However, any failure by the CEO to adhere to the statutory requirements for revocation, such as not publishing the notice or not properly assessing the conditions for revocation, could potentially lead to legal challenges or administrative actions. The revocation itself, as specified under section 269SC(6), takes effect from the date the request for revocation was lodged, aligning with the statutory provisions that govern the timing and effect of such revocations. This ensures that the revocation process is both timely and in accordance with legislative mandates, maintaining the integrity of the tariff concession scheme.

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