EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 23/2005
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 23/2005 was made on 23 November 2005. It revokes TCO 0503990 and makes TCO 0516354. The tariff classification has been changed from 6902.20.00 to 6815.99.00 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. 23/2005 revoked 0503990 and made new TCO 0516354 on 23 November 2005.
Overview
The Tariff Concessions Revocation Instrument No. 23/2005 was enacted in 2005 under the Customs Act 1901 to address changes in tariff classifications that affected the application of Tariff Concession Orders (TCOs). The Instrument, which was made by the Chief Executive Officer of Customs, revokes TCO 0503990 and introduces TCO 0516354, reflecting the updated tariff classification from 6902.20.00 to 6815.99.00. This change ensures that the appropriate tariff concession continues to apply to the relevant goods, thereby maintaining the integrity of the tariff concession scheme. The instrument was issued without consultation as it was considered minor and of a machinery nature, not substantially altering existing arrangements. The commencement of the revocation and the new TCO aligns with the effective date of the tariff classification change, ensuring that the changes are applied from the relevant date.
Scope and Application
The Tariff Concessions Revocation Instrument No. 23/2005 applies to the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO under Part XVA of the Customs Act 1901. Specifically, this instrument revokes TCO 0503990 and establishes TCO 0516354, reflecting a change in tariff classification from 6902.20.00 to 6815.99.00 due to a reclassification of goods. This change affects the goods subject to the TCO, potentially altering the rate of customs duty applied to them. The instrument operates within the Commonwealth jurisdiction, and its application is confined to the entities and persons dealing with the importation of goods that are subject to the TCOs. The geographic reach is national, as it pertains to the importation of goods into Australia. There are no exclusions, exemptions, or specific thresholds mentioned in the explanatory statement. The application of the Act can be further extended or restricted through subordinate instruments, as permitted by the Customs Act 1901.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument No. 23/2005 include sections 269C and 269P, which outline the conditions for making Tariff Concession Orders (TCOs). Section 269C requires that no substitutable goods are produced in Australia for the goods subject to a TCO. Section 269P allows the Chief Executive Officer (CEO) of Customs to make a TCO if these criteria are met. Additionally, subsection 269SD(2) stipulates that if the tariff classification stated in a TCO no longer applies to the goods, the CEO must revoke the TCO and issue a new one. This revocation and creation of new TCOs are the primary actions taken under this instrument.
The Tariff Concessions Revocation Instrument imposes several obligations on the parties and entities it governs. Firstly, the CEO of Customs is obligated to assess whether a tariff classification remains applicable to goods subject to a TCO. This involves reviewing amendments to the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. If it is determined that the tariff classification is no longer applicable, the CEO must promptly issue an order revoking the existing TCO and create a new one with an updated tariff classification. The instrument also mandates that these changes take effect from the date when the tariff classification ceased to apply, ensuring that the new TCO is effective immediately.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the Tariff Concessions Revocation Instrument No. 23/2005 for breaches of its provisions. However, the CEO's failure to comply with the requirements to revoke and replace a TCO when necessary could lead to legal challenges or disputes over the applicability of customs duties. While the instrument does not detail penalties, any resulting errors in tariff classification could potentially lead to disputes or financial implications for importers and exporters, which could subsequently be subject to review or correction under other parts of the Customs Act 1901 or relevant administrative processes.