EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 24/2005
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 24/2005 was made on 23 November 2005. It revokes TCO 0503991 and makes TCO 0516353. 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. 24/2005 revoked 0503991 and made new TCO 0516353 on 23 November 2005.
Overview
The Customs Act 1901, as amended, provides a framework through which the Chief Executive Officer of Customs can make and revoke Tariff Concession Orders (TCOs) to lower customs duty rates on certain goods, provided specific conditions are met. The Tariff Concessions Revocation Instrument 24/2005, enacted on 23 November 2005, addresses the need to correct and update tariff classifications due to changes in the Customs Tariff Act 1995 or decisions made by the Administrative Appeals Tribunal. This instrument was made under the authority provided by sections 269C, 269P, and 269SD of the Customs Act 1901, and it revokes TCO 0503991 while establishing a new TCO 0516353 with an updated tariff classification. The instrument reflects a policy objective to ensure that tariff concessions accurately reflect current tariff classifications, thus maintaining the integrity and fairness of the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument 24/2005, made under the Customs Act 1901, applies specifically to the revocation and establishment of Tariff Concession Orders (TCOs) concerning the classification and duty rates of imported goods. This instrument is relevant to entities and individuals dealing with the importation of goods that are subject to tariff concessions, particularly those affected by changes in tariff classifications as a result of amendments to the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal. The scope of the Act is national, impacting all entities within Australia that import goods subject to the altered tariff classifications. The instrument revokes TCO 0503991 and establishes TCO 0516353, reflecting a change in tariff classification from 6902.20.00 to 6815.99.00 due to tariff classification updates. The instrument is effective from the day the previous tariff classification ceased to apply, as per the provisions of the Customs Act 1901, and overrides certain restrictions on retrospective legislative instruments set out in the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument No 24/2005, made under sections 269C and 269P of the Customs Act 1901, revokes Tariff Concession Order (TCO) 0503991 and establishes a new TCO 0516353. This legislative instrument was enacted to adjust the tariff classification for certain goods from 6902.20.00 to 6815.99.00, reflecting changes in the Customs Tariff Act 1995. The instrument was made on 23 November 2005, and it became effective from the day the previous tariff classification ceased to apply to the specified goods, ensuring that the new TCO takes effect from the moment the old one is revoked.
Under the Customs Act 1901, the Chief Executive Officer of Customs is authorised to make and revoke TCOs. Section 269SD(2) mandates the revocation of an existing TCO if it is determined that the tariff classification stated in the order no longer applies to the goods due to a tariff amendment, a court decision, or advice from a Customs officer. This provision ensures that tariff classifications remain current and accurately reflect the legislative and administrative changes impacting the goods in question.
Entities and individuals governed by the Customs Act 1901 must comply with the provisions of the Tariff Concessions Revocation Instrument No 24/2005. This includes ensuring that the new tariff classification, 6815.99.00, is applied to the goods subject to the new TCO 0516353 from the effective date of the revocation. Importers, exporters, and other relevant parties must update their records and documentation to reflect the new tariff classification, ensuring compliance with the applicable customs duty rates and other related requirements.
The Customs Act 1901 provides for potential civil and criminal penalties for non-compliance with its provisions, including the failure to apply the correct tariff classification. Although the specific penalties are not detailed in the explanatory statement, breaches of customs laws can result in fines, penalties, and other legal consequences. The severity of the penalties may depend on the nature and extent of the breach, with more significant violations potentially leading to criminal charges. It is crucial for all parties involved to adhere strictly to the requirements of the Tariff Concessions Revocation Instrument No 24/2005 to avoid any legal repercussions.