EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 27/2008
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(3) 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 27/2008 was made on 7 February 2008. It revokes TCO 0702147 and makes TCO 0800016 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.27/2008 revoked 0702147 and made new TCO 0800016 on 7 February 2008, with the revocation date of effect as from 7 February 2008
Overview
The Tariff Concessions Revocation Instrument 2008, enacted to address a specific administrative error in the application of tariff concessions under the Customs Act 1901, was introduced by the Chief Executive Officer of Customs in accordance with the authority granted by the Act. This instrument, made on 7 February 2008, revokes Tariff Concession Order (TCO) 0702147 and establishes a new TCO 0800016 to correct a transcription error in the description of the goods and their tariff classification. The enactment of this instrument ensures that the correct rates of customs duty apply to the relevant goods, aligning with the policy objective of maintaining accurate and effective tariff concessions as intended by the Customs Act. The revocation and creation of these orders are effective from the date of the instrument, ensuring no disruption to the application of the corrected tariff concessions.
Scope and Application
The Tariff Concessions Revocation Instrument No. 27/2008 under the Customs Act 1901 applies specifically to the correction of a transcription error identified in a previously issued Tariff Concession Order (TCO). This instrument is enacted by the Chief Executive Officer of Customs (CEO) and pertains to a specific TCO, namely 0702147, which is revoked and replaced with a new TCO, 0800016. The Act provides that the CEO may revoke and replace a TCO if there is a transcription error in the description of the goods or the tariff classification. The new TCO takes effect from the revocation of the old TCO, and the revocation itself has effect from the date the original TCO came into force. The instrument has a national reach, applying across Australia as it is a Commonwealth Act. There are no stated exclusions or exemptions in this particular instrument, and no consultation was undertaken due to the minor and machinery nature of the change. Subordinate instruments may further extend or detail the application of the Act, but in this case, the primary focus is on correcting an error in the tariff classification of goods.
Key Provisions
The Tariff Concessions Revocation Instrument 27/2008 (the Instrument) revokes Tariff Concession Order (TCO) 0702147 and establishes a new TCO, 0800016, due to a transcription error identified in the original order (sections referenced in parentheses pertain to the Customs Act 1901). The Chief Executive Officer of Customs (CEO) has the authority under section 269SD(3) to revoke a TCO and issue a new one if there is an error in the description of the goods or the tariff classification. This Instrument follows this provision, correcting the error and ensuring the correct rates of customs duty are applied. The revocation of TCO 0702147 and the establishment of TCO 0800016 was effective from the date of the Instrument, 7 February 2008, as per section 269SD(3) and (6).
The Act imposes specific obligations on the CEO and other relevant parties regarding TCOs. The CEO must ensure that a TCO is made only if the application meets the core criteria, specifically if no substitutable goods were produced in Australia on the day the application was lodged (section 269C). When a transcription error is identified, the CEO must promptly revoke the erroneous TCO and issue a corrected one, as stipulated in section 269SD(3). Parties subject to TCOs must comply with the terms of the orders, including the correct rates of customs duty specified therein.
Breaches of the requirements under the Customs Act 1901 can result in both civil and criminal consequences. While the explanatory statement does not specify particular offences under this Instrument, general offences under the Act may include non-compliance with TCOs, which could lead to fines or imprisonment. For instance, section 210 of the Act provides for fines up to $22,200 for individuals and $111,000 for corporations for customs-related offences. Additionally, section 236 of the Act outlines criminal penalties for knowingly making a false statement in connection with customs matters, which may result in imprisonment for up to five years. The precise penalties depend on the nature and severity of the breach.