EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 29/2008
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 29/2008 was made on 5 February 2008. It revokes TCO 0718970 and makes TCO 0801963 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.29/2008 revoked 0718970 and made new TCO 0801963 on 5 February 2008, with the revocation date of effect as from 7 November 2007.
Overview
The Tariff Concessions Revocation Instrument No. 29/2008 was enacted to address a transcription error in the description of goods and their tariff classification in an existing Tariff Concession Order (TCO) under the Customs Act 1901. This Instrument was made by the Chief Executive Officer of Customs (CEO) in accordance with section 269SD(3) of the Act, which allows for the revocation of a TCO and the issuance of a new one to correct any transcription errors. This legislative instrument aims to ensure the accuracy and integrity of the tariff concessions scheme by rectifying errors that may have been made in the original TCO. The Instrument came into effect from the day it was made, 5 February 2008, with the revocation of the old TCO taking effect from 7 November 2007. This minor adjustment does not substantially alter existing arrangements and no consultation was deemed necessary as per the provisions of the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 29/2008 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) issued by the Chief Executive Officer of Customs. This Act applies to any goods that are subject to a TCO, which are goods that were not produced in Australia on the day the TCO application was lodged. The Instrument revokes a previously issued TCO, number 0718970, and issues a new TCO, number 0801963, due to a transcription error in the description of the goods and their tariff classification. This change was made without consultation as it was considered minor and of a machinery nature, not substantially altering existing arrangements. The revocation and the issuance of the new TCO are effective from the original TCO's commencement date, 7 November 2007, and the new TCO is effective from the date of revocation. The Instrument operates under the Commonwealth jurisdiction, with the legislative changes taking effect despite the prohibitions outlined in section 12 of the Legislative Instruments Act 2003 concerning retrospective legislative instruments.
Key Provisions
The Tariff Concessions Revocation Instrument No. 29/2008 (F2008L00483) deals with the revocation and replacement of a Tariff Concession Order (TCO) under the Customs Act 1901. Specifically, section 269SD(3) of the Act allows for the revocation of a TCO if there is a transcription error in the description of the goods or their tariff classification. In this case, TCO 0718970 was revoked and replaced by TCO 0801963 due to such an error (section 269SD(3)). The revocation of the old TCO is effective from the day it came into force, which was 7 November 2007, while the new TCO, 0801963, took effect from the day of the revocation, 5 February 2008 (subsections 269SD(3) and 269SD(6)).
The obligations imposed by this Instrument primarily rest on the Chief Executive Officer of Customs (CEO). When the CEO is satisfied that there has been a transcription error in a TCO, they are mandated to revoke the erroneous TCO and issue a corrected one. This ensures that the customs duty applied to the goods remains accurate and reflective of the intended legislative intent. Additionally, the CEO must ensure that the new TCO is issued promptly to avoid any confusion or legal complications that might arise from discrepancies in tariff classifications.
Breaching the requirements set out in this Instrument could lead to significant consequences, both civil and criminal. If the CEO fails to identify and correct a transcription error in a TCO, it could result in incorrect customs duties being applied, leading to potential financial losses for either the importers or the government. Civilly, this could result in disputes and claims for compensation. Criminally, if the error is deemed to be due to negligence or intentional misconduct, it could lead to prosecution under the relevant sections of the Customs Act 1901. While the Instrument does not specify maximum penalties, general provisions in the Act may apply, and penalties could range from fines to imprisonment, depending on the severity and intent behind the breach.