EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 27/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 27/2012 was made on
11 January 2012. This instrument revokes 0602905 of classification 6306.99.00 and makes new TCO 1200804 of classification 6306.90.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 27/2012 revokes TCO 0602905 and makes new TCO 1200804 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 27/2012 was enacted to address discrepancies in tariff classifications resulting from amendments to the Customs Tariff Act 1995, specifically the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. This instrument revokes Tariff Concession Order (TCO) 0602905 of classification 6306.99.00 and introduces a new TCO 1200804 of classification 6306.90.00, both effective from 1 January 2012. The Customs Act 1901, administered by the Parliament of Australia, empowers the Chief Executive Officer of Customs to make and revoke TCOs, ensuring that lower rates of customs duty apply to qualifying goods. The policy objective is to maintain the integrity of the tariff system by aligning TCOs with the updated tariff classifications. No consultation was deemed necessary for this instrument as the changes are considered minor and primarily administrative.
Scope and Application
The Tariff Concessions Revocation Instrument 27/2012 operates under the Customs Act 1901, which provides the legislative framework for the regulation of customs and excise duties in Australia. This particular instrument is relevant to entities and individuals involved in the import and export of goods subject to the revoked and newly established Tariff Concession Orders (TCOs). Specifically, the Act applies to those importing or exporting goods that fall under the specified classifications affected by the instrument, which in this case are 6306.99.00 and 6306.90.00. The geographic reach of this legislation is national, as it pertains to customs duties across Australia. The instrument revokes the previous TCO 0602905 and establishes a new TCO 1200804, reflecting changes in tariff classifications that took effect from 1 January 2012, as per the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. No consultation was deemed necessary for this minor, machinery-related change. The revocation and establishment of new TCOs are effective from the day the CEO is satisfied that the tariff classifications will no longer apply to the specified goods, which in this instance is 1 January 2012.
Key Provisions
The Tariff Concessions Revocation Instrument 27/2012, under the Customs Act 1901, involves the revocation of an existing Tariff Concession Order (TCO) and the creation of a new one. Specifically, section 269SD(2A) mandates that when the Chief Executive Officer of Customs (CEO) is satisfied that an amendment to the Customs Tariff Act 1995 will change the tariff classification of certain goods, the CEO must revoke the existing TCO and issue a new one. This instrument revokes TCO 0602905 and replaces it with TCO 1200804, reflecting the changes made by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which came into effect on 1 January 2012.
The primary obligation imposed by this Act on the parties involved, especially the CEO, is to ensure that the tariff classifications for goods subject to TCOs remain accurate and up-to-date. This requires the CEO to monitor amendments to the Customs Tariff Act 1995 and promptly make the necessary changes to the TCOs. The revocation of TCO 0602905 and the creation of TCO 1200804 are direct responses to changes in tariff classifications, ensuring that the customs duty applied to the specified goods remains consistent with the current tariff schedule.
While the Tariff Concessions Revocation Instrument 27/2012 itself does not outline specific offences, penalties, or consequences for breach, the Customs Act 1901 does provide a framework for enforcement. Under section 274, any person who contravenes a provision of the Customs Act 1901 or an order made under it may be liable for a penalty. For example, section 277 outlines the penalty for fraudulent contraventions, which can include fines up to a significant amount and/or imprisonment. Additionally, section 278 addresses civil penalties for non-compliance, which can include substantial fines per contravention. The exact penalties depend on the nature and severity of the breach, but they underscore the importance of adhering to the provisions set out in the Customs Act 1901 and related instruments.