EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 24/2012
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 24/2012 was made on
30 November 2011. This instrument revokes 0916169 of classification 8507.80.00 and makes new TCO 1130532 of classification 8507.60.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
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 24/2012 revokes TCO 0916169 and makes new TCO 1130532 in its place, with effect from 1 January 2012.
Overview
The Customs Act 1901, enacted by the Australian Parliament, established a framework for the administration of customs and excise duties. In 2012, the Tariff Concessions Revocation Instrument 24 was introduced to address a specific issue within this framework. This instrument revokes a previous Tariff Concession Order (TCO) and establishes a new one in response to amendments in the Customs Tariff Act 1995. The policy objective of this instrument is to ensure that the tariff classifications for certain goods remain accurate and effective, reflecting the changes mandated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. By revoking and replacing the existing TCO, the instrument maintains the integrity of the tariff concession scheme under the Customs Act.
Scope and Application
The Tariff Concessions Revocation Instrument 24/2012 applies to the revocation of existing Tariff Concession Orders (TCOs) and the creation of new ones under the Customs Act 1901. Specifically, it concerns the revocation of TCO 0916169 and the introduction of new TCO 1130532, reflecting changes to the Customs Tariff Act 1995. The instrument impacts entities and individuals involved in the importation of goods classified under 8507.80.00 and 8507.60.00, ensuring they comply with the updated tariff classifications effective from 1 January 2012. This legislative change is confined to the Customs Act 1901 and the Customs Tariff Act 1995, without any explicit exclusions or exemptions specified in the instrument. The instrument is a direct application of the Act, with no additional scope provided through subordinate legislation. The changes apply nationally, reflecting the broad jurisdictional reach of the Customs Act 1901 across Australia.
Key Provisions
The Tariff Concessions Revocation Instrument 24/2012 primarily involves the revocation of a specific Tariff Concession Order (TCO) and the establishment of a new TCO to replace it, in accordance with the Customs Act 1901. Section 269C of the Act outlines the process for making a TCO, while section 269P specifies the conditions under which a TCO is applicable. In this instance, the instrument revokes TCO 0916169, which was applicable to goods classified under 8507.80.00, and establishes a new TCO, 1130532, which applies to goods now classified under 8507.60.00. This change is in response to amendments in the Customs Tariff Act 1995, as reflected in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
The obligations under this Act are primarily on the Chief Executive Officer of Customs (CEO). As per section 269SD(2A) of the Customs Act 1901, the CEO must revoke a TCO if an amendment to the Customs Tariff Act 1995 changes the tariff classification applicable to the goods. The CEO is also required to make a new TCO if the goods are still eligible for tariff concessions under the amended tariff classification. In this case, the CEO has exercised these powers by revoking TCO 0916169 and issuing TCO 1130532, ensuring that the applicable tariff concessions remain in effect despite changes to the tariff classification.
The Act does not explicitly outline specific offences or penalties for non-compliance with the requirements to revoke or issue a TCO. However, any failure by the CEO to act as mandated by section 269SD(2A) of the Customs Act 1901 could potentially result in legal challenges or administrative consequences. For example, if the CEO does not issue a new TCO when required, there could be a lapse in tariff concessions, leading to increased customs duties on affected goods. While the explanatory statement does not detail specific penalties, any breach of the Customs Act 1901 or related regulations could lead to civil or criminal penalties as outlined in the principal Act or other relevant legislation.