EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 22/2006
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 22/2006 was made on 15 March 2006. It revokes TCO 0102025 and makes TCO 0605245. 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. 22/2006 revoked 0102025 and made new TCO 0605245 on 15 March 2006.
Overview
The Tariff Concessions Revocation Instrument No. 22/2006 was enacted under the Customs Act 1901 to address the issue of tariff classification changes impacting existing Tariff Concession Orders (TCOs). This instrument, made on 15 March 2006, was introduced to ensure that any amendments to the tariff classification, as well as decisions by the Administrative Appeals Tribunal or advice from Customs officers, are reflected in the applicable TCOs. The Tariff Concessions Revocation Instrument 22/2006 revokes TCO 0102025 and establishes TCO 0605245, reflecting a change in tariff classification from 8418.69.00 to 8418.61.00 due to a revision in the Customs Tariff Act 1995. This instrument was created by the Chief Executive Officer of Customs, mandated by the Act to manage such revocations and new orders. The policy objective is to maintain the integrity and relevance of tariff concessions by ensuring that the applicable tariff classifications remain accurate and effective.
Scope and Application
The Tariff Concessions Revocation Instrument 22/2006, made under the Customs Act 1901, pertains to the revocation of a Tariff Concession Order (TCO) and the issuance of a new TCO. The Act applies to entities and individuals who are subject to customs duties and concession orders, particularly those dealing with the importation and classification of goods under the Australian Customs Tariff. The legislation is administered at the Commonwealth level, with the Chief Executive Officer of Customs holding the authority to make and revoke TCOs. The revocation of TCO 0102025 and the creation of TCO 0605245 are due to a change in tariff classification, reflecting the dynamic nature of international trade agreements and domestic economic policies. The instrument does not specify exclusions or thresholds but operates within the existing framework of the Customs Act, allowing for adjustments in response to tariff changes or legal interpretations. The commencement of the new order is tied to the effective date of the tariff change, ensuring that the application of customs duties aligns with current classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 22/2006, made under sections 269C and 269P of the Customs Act 1901, revokes Tariff Concession Order (TCO) 0102025 and establishes TCO 0605245. This instrument was enacted due to a change in tariff classification from 8418.69.00 to 8418.61.00. The revocation and establishment of new TCOs are necessary to ensure that the correct tariff rates apply to the goods as per the updated classification. The changes are effective from the date when the old tariff classification ceased to apply to the goods, aligning with subsection 269SD(2) of the Act.
The Customs Act 1901 imposes several obligations on the Chief Executive Officer of Customs (CEO) in the context of TCOs. Firstly, the CEO must ensure that no substitutable goods are produced in Australia when making a TCO. Secondly, the CEO must promptly revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies, as per subsection 269SD(2). This ensures that the tariff concessions are accurately reflecting the current tariff classifications. Moreover, the CEO is required to issue a new TCO with the updated classification to maintain the integrity of the tariff concession scheme.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 22/2006 may result in various consequences. While the explanatory statement does not explicitly outline offences or penalties for breaches of the Act or the Instrument, non-compliance with the tariff concession provisions could lead to incorrect tariff rates being applied to goods. This may result in financial liabilities for importers or exporters, as well as potential disputes with the Australian Customs and Border Protection Service. It is important for parties involved in the importation or exportation of goods to adhere to the requirements of the Act and the Instrument to avoid any negative consequences.