EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 25/2007
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(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 25/2007 was made on 9 February 2007. It revokes TCO 0618420 and makes TCO 0701951. The tariff classification has been changed from 8480.60 to 8480.60.00.
Consultation
No consultation was undertaken since the change is of a 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. 25/2007 revoked TCO 0618420 and made new TCO 0701951 on 9 February 2007.
Overview
The Tariff Concessions Revocation Instrument 25/2007, enacted on 9 February 2007, is a legislative instrument under the Customs Act 1901 designed to address discrepancies in tariff classifications of goods subject to Tariff Concession Orders (TCOs). This instrument was introduced to ensure that the correct tariff classification applies to goods, in line with amendments to the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. The instrument was enacted by the Chief Executive Officer of Customs, who is empowered under sections 269C and 269P of the Customs Act 1901 to make and revoke TCOs. The policy objective behind this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the applicable customs duty rates accurately reflect the current tariff classification of the goods. The instrument revokes TCO 0618420 and establishes new TCO 0701951, reflecting the necessary changes in tariff classification.
Scope and Application
The Tariff Concessions Revocation Instrument 25/2007, made under the Customs Act 1901, applies to the revocation and replacement of specific Tariff Concession Orders (TCOs) concerning tariff classifications for imported goods. The Act pertains to entities and individuals involved in the importation of goods subject to TCOs, ensuring that appropriate tariff rates are applied in accordance with the Customs Tariff Act 1995 and any relevant court decisions or Customs advice. The instrument is effective across the Commonwealth of Australia, governing the import duties and concessions applicable to goods across state and territory boundaries. Notably, the instrument does not apply to goods that are already produced domestically or to those that do not fall under the specified tariff classifications. The application and scope of the instrument can be extended or refined through subordinate instruments, which may provide additional details or modifications to the tariff classifications and their effects on imports. The commencement of the revocation and the creation of a new TCO is contingent upon the tariff classification's applicability date, as specified in the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 25/2007 primarily serves to revoke Tariff Concession Order (TCO) 0618420 and introduce a new TCO, 0701951, under the Customs Act 1901. This instrument was issued on 9 February 2007, following the identification of a discrepancy in tariff classification due to changes in the Customs Tariff Act 1995 or a decision by the Administrative Appeals Tribunal, or advice from a Customs officer. The primary operative sections involved are sections 269C, 269P, 269SD, and others within Part XVA of the Customs Act 1901. Section 269SD(2) specifically mandates that the Chief Executive Officer of Customs (CEO) must revoke the existing TCO if the tariff classification no longer applies and subsequently issue a new TCO.
The obligations and requirements imposed by this Act on the parties and entities it governs include ensuring that any goods subject to a TCO are correctly classified under the applicable tariff schedule. The CEO is required to monitor changes in tariff classifications and make necessary adjustments to TCOs to maintain compliance with current tariff laws. Importers, exporters, and other stakeholders must be aware of the changes in TCOs and adjust their practices accordingly to avoid any non-compliance issues. The revocation and issuance of a new TCO must be done in accordance with the specified timelines and conditions set out in the Customs Act 1901.
Under the Customs Act 1901, breaches of the requirements to correctly apply tariff classifications and comply with the provisions of the TCOs can result in civil and criminal consequences. While the specific offences and penalties are not detailed in the Explanatory Statement, the Customs Act 1901 generally provides for penalties that can include fines and, in some cases, criminal charges for serious or repeated breaches. The maximum penalties for customs-related offences can vary, but they often include substantial financial penalties and potential imprisonment for more severe violations. Therefore, it is crucial for all parties to adhere strictly to the requirements set forth in the Customs Act 1901 and the specific TCOs to avoid any legal repercussions.