EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 29/2010
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 29/2010 was made on 8 October 2009. It revokes TCO 0918400 and makes TCO 0933265 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.29/2010 revoked 0918400 and made new TCO 0933265 on 8 October 2009, with the revocation date of effect as from 29 May 2009
Overview
The Tariff Concessions Revocation Instrument No. 29/2010 was enacted to address a specific transcription error identified in a Tariff Concession Order (TCO) under the Customs Act 1901. The Customs Act, enacted in 1901, governs the administration of customs duties and includes provisions for the creation and revocation of TCOs to provide tariff concessions on certain goods. This instrument was introduced by the Chief Executive Officer of Customs and aims to correct an error in the description of goods subject to a TCO, ensuring the accuracy of tariff classifications. The instrument revokes the previous TCO 0918400 and establishes a new TCO 0933265 to reflect the correct classification. The revocation and the establishment of the new TCO are effective from the date the original TCO came into force, demonstrating the intent to maintain continuity in the tariff concessions scheme without retrospective effect, as provided under the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 29/2010, made under the Customs Act 1901, applies specifically to the revocation of a Tariff Concession Order (TCO) and the issuance of a new TCO to correct a transcription error in the description of the goods and their tariff classification. This instrument affects any entities or individuals who have an interest in the goods that were originally covered by the now-revoked TCO 0918400 and who now fall under the purview of the new TCO 0933265. The application of this instrument is national in scope, consistent with the Commonwealth jurisdiction of the Customs Act 1901, and it extends across all states and territories in Australia. The revocation of TCO 0918400 and the issuance of TCO 0933265 are effective from the original date the TCO 0918400 came into force, thus ensuring that the correction applies retrospectively from 29 May 2009. No consultation was required due to the minor and procedural nature of the changes, which do not substantially alter existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 2010 (F2010L02904) under the Customs Act 1901 addresses the revocation of a Tariff Concession Order (TCO) due to a transcription error. Specifically, section 269C and section 269P of the Act allow for the creation of TCOs, which apply reduced rates of customs duty to certain goods. If a TCO is made in error, section 269SD(3) empowers the Chief Executive Officer (CEO) of Customs to revoke the erroneous TCO and issue a corrected one. In this instance, TCO 0918400 was revoked and replaced with TCO 0933265 on 8 October 2009 due to a transcription error in the original order.
The obligations imposed by this instrument require the CEO to carefully review and correct any errors in TCOs to ensure the correct application of customs duties. The CEO must act promptly upon identifying a transcription error, revoking the incorrect TCO and issuing a new, accurate one. This process ensures that the administration of customs duties remains accurate and fair. Additionally, section 269SD(6) ensures that the revocation and replacement of TCOs can occur without being constrained by the retrospective legislative restrictions outlined in section 12 of the Legislative Instruments Act 2003.
Failing to comply with the obligations under the Customs Act 1901 and the Tariff Concessions Revocation Instrument can lead to significant consequences. While the explanatory statement does not detail specific offences or penalties related to the failure to correct transcription errors in TCOs, breaches of the Customs Act generally can lead to substantial fines and other penalties. For example, under section 221 of the Customs Act, any person who contravenes a provision of the Act is liable to a penalty of up to $22,200 for individuals and up to $111,000 for bodies corporate, along with potential imprisonment terms. Additionally, any incorrect application of customs duties due to an uncorrected transcription error could result in financial liabilities for importers and exporters, as well as reputational damage.