EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 28/2005
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:
− 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 28/2005 was made on 21 November 2005. It revokes TCO 0510333 and makes TCO 0516021 and TCO 0516026. The tariff classification has been changed from 8485.90.00 to 8482.80.00 and 8708.99.99 because tariff classification change.
Consultation
No consultation was undertaken since the change is 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. 28/2005 revoked 0510333 and made new TCOs 0516021 and 0516026 on 21 November 2005.
Overview
The Tariff Concessions Revocation Instrument No. 28/2005, enacted on 21 November 2005, amends the Customs Act 1901 by revoking a specific Tariff Concession Order (TCO) and introducing new TCOs. This legislative instrument addresses the need for adjustments to tariff classifications, ensuring that the correct customs duty rates apply to certain imported goods following changes in tariff classification. The instrument was enacted by the Chief Executive Officer of Customs under the authority provided by the Customs Act, specifically sections 269C, 269P, and 269SD. The policy objective is to maintain accurate and up-to-date tariff classifications in alignment with changes in the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal, thereby preventing any inconsistencies in the application of customs duties.
No consultation was deemed necessary for this instrument as the changes are considered minor and of a machinery nature, not substantially altering existing arrangements. The revocation of TCO 0510333 and the creation of new TCOs 0516021 and 0516026 reflect the necessary updates to tariff classifications from 8485.90.00 to 8482.80.00 and 8708.99.99 respectively. The changes took effect from the date the old tariff classification ceased to apply to the goods, ensuring that the new classifications are implemented promptly and without retrospective effect, in compliance with the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 28/2005 operates under the Customs Act 1901 to manage the revocation and creation of Tariff Concession Orders (TCOs) concerning customs duties. It applies to the CEO of Customs, who is responsible for implementing these orders, as well as to the entities or individuals benefiting from the tariff concessions on specific goods. The instrument pertains to the geographic scope of Australia and its territories, adhering to the national framework established by the Customs Act. This legislation excludes any goods that are already being produced within Australia at the time of an application for a TCO, ensuring that local production is prioritised. The Instrument also restricts its application by referencing specific tariff classifications that have undergone changes, necessitating the revocation of outdated TCOs and the establishment of new ones to reflect current tariff classifications. The application of this Act can be extended through subordinate instruments, which allow for the dynamic adjustment of tariff concessions in response to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers.
Key Provisions
The Tariff Concessions Revocation Instrument 28/2005, made under the Customs Act 1901, includes several key provisions that relate to the revocation of a Tariff Concession Order (TCO) and the creation of new ones. Specifically, section 269SD(2) of the Customs Act mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if certain conditions are met, such as a change in tariff classification due to an amendment of the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or advice from an officer of Customs. This section also requires the CEO to issue a new TCO with updated tariff classifications effective from the day of revocation.
Under this Act, the CEO is obligated to monitor tariff classifications and ensure they align with current classifications. If a discrepancy is found, the CEO must act to revoke the existing TCO and issue a new one. This process ensures that the appropriate customs duty rates are applied to the goods in question. The obligations extend to ensuring that the new TCO reflects accurate and up-to-date tariff classifications, thereby maintaining the integrity of the customs duty system.
Breaches of the requirements set out in the Customs Act 1901 can result in various penalties and consequences. For example, if goods subject to a TCO are imported under incorrect tariff classifications, this may lead to non-compliance with customs laws. The Act provides for both civil and criminal penalties for such breaches. Civil penalties can include fines up to a maximum of $22,200 per offence for individuals and significantly higher amounts for corporations. Criminal penalties can include imprisonment, with the exact terms varying based on the severity of the offence and whether it was committed intentionally or negligently.
In summary, the Tariff Concessions Revocation Instrument 28/2005 plays a crucial role in managing tariff concessions under the Customs Act 1901. It mandates the CEO to revoke and reissue TCOs in response to changes in tariff classifications. This process ensures compliance with customs laws and the accurate application of customs duties. Non-compliance can lead to severe penalties, including substantial fines and potential imprisonment.