EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 24/2007
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 24/2007 was made on
8 February 2007. This instrument revokes 0615702 of classification 8527.31.00 and makes new TCO 0702021 of classification 8527.91.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 24/2007 revokes TCO 0615702 and makes new TCO 0702021 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 24/2007 was enacted to address the need for updating tariff concessions under the Customs Act 1901 in response to changes in the Customs Tariff Act 1995. This instrument was made by the Chief Executive Officer of Customs under the authority granted by the Customs Act 1901, specifically sections 269C, 269P, and 269SD(2A). The primary policy objective is to ensure that tariff concessions remain aligned with the current tariff classifications, thereby maintaining the integrity and effectiveness of the customs duty regime. Given that the changes are of a minor or machinery nature, and do not substantially alter existing arrangements, no consultation was deemed necessary. The revocation and re-establishment of the tariff concessions took effect from 1 January 2007, aligning with the amendments made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
Scope and Application
The Tariff Concessions Revocation Instrument 24/2007 operates under the Customs Act 1901, specifically addressing the revocation of Tariff Concession Orders (TCOs) due to changes in the Customs Tariff Act 1995. The Act applies to goods that benefit from tariff concessions, where no substitutable goods are produced in Australia. This instrument is relevant to entities or individuals dealing with goods classified under the affected tariff codes. The revocation and creation of new TCOs are intended to reflect changes in tariff classifications that became effective from 1 January 2007, as per the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The geographic reach of this Act is national, applying across Australia. There are no stated exclusions or exemptions within this instrument, and it does not specify any thresholds. The instrument is a direct application of the Act's provisions and does not extend or restrict its application through subordinate instruments.
Key Provisions
The Tariff Concessions Revocation Instrument 24/2007, as outlined in the explanatory statement, operates under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901. It revokes an existing Tariff Concession Order (TCO) 0615702, which had a classification of 8527.31.00, and establishes a new TCO 0702021 with a classification of 8527.91.00. This change reflects amendments to the Customs Tariff Act 1995 made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which became effective on 1 January 2007. The new TCO takes effect from the same date, ensuring that the revised tariff classification applies to the goods in question from that time.
The Act imposes several obligations on the Chief Executive Officer of Customs (CEO). Under section 269SD(2A), the CEO must make an order revoking an existing TCO if, due to an amendment of the Customs Tariff Act 1995, the tariff classification in the TCO will no longer apply to the goods from a particular day. The CEO must also make a new TCO for the goods with effect from that day. This requirement ensures that the goods continue to benefit from tariff concessions, albeit under the new classification. The CEO’s actions must align with the changes in the tariff classification to maintain the integrity of the tariff concession scheme.
Breach of the obligations set out in the Customs Act 1901 could have legal consequences, although specific offences, penalties, or civil/criminal consequences are not detailed in the explanatory statement. The primary focus of the Act is to ensure that the tariff concessions are correctly applied in accordance with the prevailing tariff classifications. Any failure to revoke an existing TCO or to issue a new TCO when required could potentially lead to disputes over the correct customs duty payable on the affected goods, though the statement does not provide explicit details on the penalties or enforcement mechanisms for such breaches. The overall aim is to maintain a transparent and fair application of tariff concessions in line with the Customs Tariff Act 1995.