EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 29/2007
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(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 29/2007 was made on
12 February 2007. This instrument revokes 0618437 of classification 8419.90.90 and makes new TCO 0702022 of classification 8419.90.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
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 29/2007 revokes TCO 0618437 and makes new TCO’s 0702022 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 29/2007, enacted on 12 February 2007, is a legislative measure designed to address discrepancies in tariff concessions resulting from amendments to the Customs Tariff Act 1995. This instrument, under the Customs Act 1901, was introduced to ensure that the concessions on customs duty continue to apply correctly to the relevant goods following changes in tariff classification. The Customs Act 1901, managed by the Australian Parliament, facilitates the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs (the CEO) to maintain tariff alignment. The primary objective of this instrument was to reflect the changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, ensuring that the tariff classifications remain accurate and applicable to the specified goods from 1 January 2007 onwards.
Scope and Application
The Tariff Concessions Revocation Instrument 29/2007 applies to the Customs Act 1901, specifically addressing the revocation and amendment of Tariff Concession Orders (TCOs) as per the Act’s provisions. This instrument is relevant to entities and individuals engaged in importing goods that fall under the tariff classifications specified in the instrument, specifically those related to classification 8419.90.90 and 8419.90.00. The instrument’s jurisdiction extends under the Commonwealth of Australia, governed by the Customs Act 1901, and it applies nationally across Australia. The revocation and amendment of TCOs are made necessary due to changes in the Customs Tariff Act 1995, which took effect from 1 January 2007. As such, the instrument ensures that the applicable customs duty rates and tariff classifications remain consistent with the updated tariff system. The instrument does not exclude any specific entities or industries, but rather, it impacts all importers of goods affected by the revised classifications. The changes implemented through this instrument do not require further consultation as they are deemed minor and primarily administrative. The revocation and application of new TCOs commence from 1 January 2007, aligning with the effective date of the tariff changes.
Key Provisions
The Tariff Concessions Revocation Instrument 29/2007, made under the Customs Act 1901, is concerned with the revocation and re-establishment of Tariff Concession Orders (TCOs) in light of amendments to the Customs Tariff Act 1995. Section 269C and 269P of the Customs Act 1901 provide the legal basis for the creation of TCOs, which apply lower rates of customs duty to specified goods. When the tariff classification of goods changes due to amendments in the Customs Tariff Act 1995, the Chief Executive Officer of Customs (CEO) must revoke the existing TCO and issue a new one, as stipulated in subsection 269SD(2A) of the Customs Act 1901. The Instrument revokes TCO 0618437 and establishes new TCO 0702022, reflecting changes that came into effect from 1 January 2007 as a result of the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
The obligations imposed by this Act on the parties or entities it governs are primarily concerned with compliance with the newly established TCOs. Importers and exporters must ensure that the goods they deal with are correctly classified under the new tariff order, which may involve adjustments to their import and export documentation to reflect the new tariff classification. The CEO's role is to oversee the revocation and re-establishment of TCOs, ensuring that the lower customs duty rates are applied appropriately in accordance with the changes in the Customs Tariff Act 1995. Importers and exporters must also stay informed about these changes to avoid any potential misclassification of goods, which could result in higher customs duties or penalties.
Failure to comply with the new TCOs could lead to civil or criminal consequences. For instance, incorrect classification of goods could result in the imposition of higher customs duties or fines. The Customs Act 1901 provides for various penalties for non-compliance, including fines and, in serious cases, imprisonment. The maximum penalties are specified in the Customs Act 1901 and can vary depending on the nature and severity of the offence. It is important for all parties involved in the import and export of goods to understand and comply with the requirements of the new TCO to avoid these potential penalties.