EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 26/2007
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 26/2007 was made on 9 February 2007. It revokes TCO 0609625 and makes TCO 0702032. The tariff classification has been changed from 8422.30.90 to 8428.90.00.
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. 26/2007 revoked TCO 0609625 and made new TCO 0702032 on 9 February 2007.
Overview
The Tariff Concessions Revocation Instrument 26/2007, enacted in 2007, addresses the need for tariff adjustments within the framework established by the Customs Act 1901. This legislative instrument was introduced to revoke Tariff Concession Order (TCO) 0609625 and introduce a new TCO 0702032, reflecting a change in tariff classification due to alterations in the Customs Tariff Act 1995. The revocation and creation of these orders were necessary to ensure that the appropriate tariff rates apply to specific goods, thereby maintaining consistency and accuracy in customs duty applications as mandated by the Customs Act. This action was taken by the Chief Executive Officer of Customs, in line with the statutory requirements outlined in the Act, ensuring that the tariff classification aligns with current legislative and judicial developments.
Scope and Application
The Customs Act 1901, as supplemented by the Tariff Concessions Revocation Instrument No 26/2007, governs the application and revocation of Tariff Concession Orders (TCOs) that determine the rates of customs duty for certain imported goods. This legislative framework applies to entities and individuals involved in the importation of goods that are subject to a TCO, specifically where such goods are categorised under specific tariff classifications as amended by the Customs Tariff Act 1995, or as determined by court decisions or Customs officer advice. The scope of this legislation is national, operating under the Commonwealth jurisdiction. Notably, this instrument revokes TCO 0609625 and introduces TCO 0702032, effective from the day the tariff classification ceased to apply to the relevant goods. The instrument’s revocation and creation of new TCOs are governed by specific statutory provisions and can operate retrospectively, circumventing the prohibitions set out in the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 26/2007, which was made under the Customs Act 1901, include sections 269C, 269P, and 269SD. Section 269C allows the Chief Executive Officer (CEO) of Customs to make Tariff Concession Orders (TCO) when certain criteria are met, such as the absence of substitutable goods produced in Australia. Section 269P establishes the process for revoking TCOs when the tariff classification changes due to amendments, court decisions, or written advice from Customs officers. Section 269SD specifically mandates the revocation of a TCO if the stated tariff classification no longer applies to the goods, with effect from a particular date. The Instrument revokes TCO 0609625 and establishes TCO 0702032, altering the tariff classification from 8422.30.90 to 8428.90.00.
The Tariff Concessions Revocation Instrument imposes obligations on the CEO of Customs to ensure that tariff concessions accurately reflect the current tariff classification of goods. The CEO must monitor and review tariff classifications regularly to identify any discrepancies that necessitate the revocation of existing TCOs and the creation of new ones. This process is crucial to maintain the integrity of the tariff concession scheme and to ensure that goods are correctly classified and subject to the appropriate duty rates. The Instrument also mandates that the CEO make an order to revoke a TCO and issue a new one when changes in tariff classifications are identified, ensuring compliance with the Customs Act 1901.
Under the Customs Act 1901, breaches of the provisions related to tariff concessions can lead to significant consequences. While the explanatory statement does not detail specific offences, penalties, or civil/criminal consequences for non-compliance with the Tariff Concessions Revocation Instrument, it is reasonable to infer that failure to correctly apply tariff classifications and revoke or issue TCOs as required could result in legal repercussions. These might include financial penalties for incorrect duty payments, legal action for non-compliance, and potential reputational damage for entities involved in the importation or exportation of goods affected by incorrect tariff classifications. The exact penalties would be determined based on the specifics of the breach and the relevant provisions of the Customs Act 1901.