EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 22/2005
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 22/2005 was made on 17 November 2005. It revokes TCO 0508133 and makes TCO 0514858. The tariff classification has been changed from 8418.50.00 to 8418.69.00 because 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. 22/2005 revoked 0508133 and made new TCO 0514858 on 17 November 2005.
Overview
The Customs Act 1901, as amended, is a comprehensive piece of legislation that governs the administration of customs duties, border control, and related matters in Australia. In 2005, the Tariff Concessions Revocation Instrument No. 22 was enacted to address the need for the revocation of certain Tariff Concession Orders (TCOs) due to changes in tariff classifications. This instrument was introduced by the Chief Executive Officer of Customs (CEO) in accordance with sections 269C, 269P, and 269SD of the Customs Act 1901. The primary objective of this legislation is to ensure that the tariff classification stated in a TCO accurately reflects the current customs classification, thereby maintaining the integrity of the tariff concession scheme. The instrument was enacted without consultation, as it was considered a minor, machinery-related change that did not substantially alter existing arrangements. The revocation and creation of new TCOs took effect from the date the previous tariff classification ceased to apply to the goods in question.
Scope and Application
The Tariff Concessions Revocation Instrument No 22/2005, made under the Customs Act 1901, applies to goods affected by Tariff Concession Orders (TCOs) that are revoked and replaced by new orders. Specifically, it targets the particular goods that were subject to Tariff Concession Order 0508133, which has been revoked, and the new order, Tariff Concession Order 0514858. This legislative instrument affects the entities that import or export the specified goods, as it alters the tariff classification and thereby impacts the customs duty applicable to these goods. The application of this Act is national in scope, as it operates under the framework of the Commonwealth Customs Act 1901. The revocation and creation of new TCOs are executed by the Chief Executive Officer of Customs, following certain conditions outlined in the Act. Notably, this instrument does not specify any exclusions, exemptions, or thresholds, and its implementation is direct under the provisions of the Customs Act 1901 without reliance on subordinate instruments. The revocation and new order came into effect on 17 November 2005, aligning with the specified dates of non-application of the original tariff classification.
Key Provisions
The Tariff Concessions Revocation Instrument 22/2005, made under the Customs Act 1901, addresses the revocation and creation of Tariff Concession Orders (TCOs) to adjust the tariff classifications of specific goods. Section 269SD(2) mandates that if the Chief Executive Officer of Customs (CEO) determines that a tariff classification in a TCO is no longer applicable due to changes in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer, they must revoke the existing TCO and issue a new one. This instrument specifically revokes TCO 0508133 and establishes TCO 0514858 due to a change in tariff classification from 8418.50.00 to 8418.69.00. The changes are effective from the day the original tariff classification ceased to apply.
The Act imposes several obligations on the parties involved. Section 269C requires that an application for a TCO must meet certain core criteria, primarily that no substitutable goods are produced in Australia at the time of application. Section 269P outlines the process by which the CEO can make a TCO if the application satisfies these criteria. Furthermore, Section 269SD(2) mandates that the CEO must take action to revoke a TCO and issue a new one if the tariff classification is no longer applicable, as per the conditions specified. The CEO must ensure that the revised TCO accurately reflects the current tariff classification, thereby maintaining compliance with the Customs Act.
Failure to comply with the provisions of the Customs Act or the terms of a TCO can result in significant consequences. Although specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act can lead to both civil and criminal penalties. For example, under Section 269U, a person can be fined up to 10,000 penalty units for making a false statement in an application for a TCO. Additionally, the Act provides for various enforcement actions, including the imposition of fines and potential legal action against non-compliant parties. The penalties serve as a deterrent against non-compliance and ensure adherence to the regulatory framework established by the Act.