EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 26/2006
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
Patrick Charles Pty Ltd requested that the CEO revoke TCO 9512627 which covers water aerator.
Instrument
Tariff Concessions Revocation Instrument No 26/2006 was made on 27 March 2006. It revokes TCO 9512627 as the CEO is satisfied that Patrick Charles Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) 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.26/2006 revoked 9512627 on 27 March 2006.
Overview
The Tariff Concessions Revocation Instrument No 26/2006, enacted on 27 March 2006, revokes Tariff Concession Order (TCO) 9512627, which pertains to water aerators. This instrument was made under the authority of the Customs Act 1901, which allows for the creation and revocation of TCOs by the Chief Executive Officer of Customs (CEO). The revocation was prompted by a request from Patrick Charles Pty Ltd, who claimed to be a producer of substitutable goods in Australia. The CEO determined that the conditions for revocation were met, specifically that Patrick Charles Pty Ltd was indeed a producer of substitutable goods and that the CEO would not have issued the TCO if the request for revocation had been made on the original application date. The revocation order aligns with the policy objective of ensuring that tariff concessions are only granted where there are no substitutable goods produced in Australia.
Scope and Application
The Customs Act 1901, through Part XVA, establishes a framework for the creation and revocation of Tariff Concession Orders (TCOs), which apply reduced rates of customs duty to specific goods. The Act permits the Chief Executive Officer of Customs (CEO) to issue TCOs based on certain criteria, notably when no substitutable goods are produced in Australia. Conversely, the Act allows for the revocation of TCOs if a producer in Australia claims to manufacture substitutable goods and requests such action from the CEO. This process is formalised under sections 269SB, 269SC, and 269SD of the Act, which outline the procedures for requesting and executing the revocation of a TCO. The scope of this legislation applies to any entity or individual who may be affected by changes in tariff rates due to the existence or revocation of TCOs. The geographic reach of the Act is national, impacting all jurisdictions within Australia. Exclusions or exemptions are not explicitly stated in the provided text, but the conditions under which TCOs can be revoked are clearly defined. The Tariff Concessions Revocation Instrument No 26/2006, made under this Act, specifically revoked TCO 9512627 concerning water aerators following a request from Patrick Charles Pty Ltd, demonstrating the CEO's authority to implement such revocations.
Key Provisions
The Tariff Concessions Revocation Instrument 26/2006 (Tariff Concessions Revocation Instrument No. 26/2006) operates under sections 269SB, 269SC, and 269SD of the Customs Act 1901. These sections pertain to the revocation of Tariff Concession Orders (TCO) when certain conditions are met. Specifically, section 269SB allows a producer of substitutable goods in Australia to request the revocation of a TCO if they believe they are now producing goods that were previously not produced in the country. Section 269SC(1) and (3) set out the criteria the Chief Executive Officer of Customs (CEO) must be satisfied with to revoke a TCO: the applicant must be a producer of substitutable goods, and the CEO must determine that they would not have made the TCO if the current date were the date the TCO was originally applied for. Finally, section 269SD(8) ensures that the revocation takes effect from the date the revocation request was lodged, circumventing retrospective legislative constraints.
The Act imposes certain obligations on the parties involved. The CEO of Customs is required to make an order revoking a TCO if satisfied with the criteria outlined in section 269SC(1) and (3). Furthermore, the CEO must publish a notice in the Gazette under subsection 269SC(1A) as soon as practicable after receiving a request for revocation. This notice must include a statement of the request and the full particulars of the TCO in question. The producer making the request must provide sufficient evidence to demonstrate that they meet the criteria for revocation, ensuring that the CEO has all necessary information to make an informed decision.
Under the Customs Act 1901, breaches of the conditions set out for the revocation of TCOs could lead to civil or criminal consequences. However, the explanatory statement does not specify any particular offences or penalties associated directly with the revocation process in this instance. The primary focus of the legislation is on the procedural correctness of the revocation and the requirements for the CEO to act upon a valid request. Any potential civil or criminal liability would likely stem from fraudulent misrepresentation of facts or other legal infractions during the application process, but these are not detailed within the provided text.