EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 26/2005
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, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 26/2005 was made on 17 November 2005. It revokes TCO 0409375 and makes TCO 0516022 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.26/2005 revoked 0409375 and made new TCO 0516022 on 17 November 2005.
Overview
The Tariff Concessions Revocation Instrument No. 26/2005 was enacted to address a transcription error in the description of goods under a previous Tariff Concession Order (TCO) within the Customs Act 1901. This instrument was introduced to correct the error in the tariff classification of the goods, thereby ensuring that the appropriate lower rate of customs duty applies accurately to the relevant goods. The instrument was issued by the Chief Executive Officer of Customs under the authority provided by the Customs Act 1901. The objective of this instrument is to rectify the administrative error while maintaining the integrity of the tariff concession scheme without substantially altering existing arrangements or requiring extensive consultation. The changes took effect from the day the original TCO came into force, ensuring a seamless transition and minimal disruption to trade practices.
Scope and Application
The Tariff Concessions Revocation Instrument No 26/2005 applies to the revocation and establishment of Tariff Concession Orders (TCOs) under Part XVA of the Customs Act 1901. Specifically, this instrument revokes TCO 0409375 and establishes TCO 0516022 due to a transcription error identified in the original order. This Act is relevant to any entity or person involved in the importation of goods subject to these TCOs, particularly those seeking the lower customs duty rates associated with them. The instrument's jurisdiction extends to the entire Commonwealth of Australia, as it operates under the authority granted by the Customs Act 1901. There are no stated exclusions or exemptions within this specific instrument, though the underlying act may contain provisions that apply to other situations. The application and scope of the act can be further extended or restricted through subordinate instruments, as permitted under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 26/2005, as stated in sections 269C, 269P, and 269SD(2) of the Customs Act 1901, focuses on the revocation and replacement of a Tariff Concession Order (TCO) due to a transcription error. Specifically, section 269C establishes the criteria for the initial creation of a TCO, which applies a lower rate of customs duty to certain goods if no substitutable goods are produced in Australia at the time of application. Section 269P further details the process of making TCOs. When the Chief Executive Officer of Customs (CEO) identifies a transcription error in the description or tariff classification of goods listed in a TCO, section 269SD(2) empowers the CEO to revoke the erroneous TCO and issue a corrected one, as demonstrated by the revocation of TCO 0409375 and issuance of TCO 0516022 on 17 November 2005.
The Act imposes several obligations on the CEO and other relevant parties. For instance, the CEO must ensure that applications for TCOs meet the specified criteria (section 269C). Furthermore, when a transcription error is identified, the CEO must promptly revoke the erroneous TCO and issue a corrected one (section 269SD(2)). The new TCO must be issued to maintain the integrity of the tariff concession scheme and prevent any undue financial burden or advantage to importers or exporters. Additionally, section 269SD(6) ensures that these provisions operate despite the general prohibition on retrospective legislative instruments set out in section 12 of the Legislative Instruments Act 2003.
Breaches of the Customs Act 1901, including the failure to correctly apply or revoke TCOs, can lead to both civil and criminal consequences. The specific penalties for breaches are not detailed in the explanatory statement, but under the Customs Act, offences can result in substantial fines. For example, section 247 of the Act provides that a person can be fined up to 10,000 penalty units for contravening certain provisions, with corporate entities facing even higher penalties. Additionally, section 248 allows for prosecution of offences against the Act, potentially leading to imprisonment if the breach is deemed serious enough. The exact penalties would depend on the nature and severity of the breach, as well as the specific sections of the Act that are contravened.