EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 30/2008
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 30/2008 was made on 12 February 2008. It revokes TCO 0712795 and makes TCO 0801970 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.30/2008 revoked 0712795 and made new TCO 0801970 on 12 February 2008, with the revocation date of effect as from 9 August 2007.
Overview
The Tariff Concessions Revocation Instrument 30/2008, enacted on 12 February 2008, serves to address a specific issue within the Customs Act 1901, particularly regarding errors in the description of goods subject to Tariff Concession Orders (TCOs). This instrument was developed to rectify transcription errors in the tariff classification of goods, thereby ensuring that the correct tariff concessions are applied. The Customs Act 1901, enacted by the Parliament of Australia, provides the framework for the administration of customs duties, including the ability for the Chief Executive Officer of Customs to make and revoke TCOs. The policy objective behind this instrument is to maintain the integrity of the tariff concession scheme by correcting errors that could lead to improper duty applications. This revocation and subsequent creation of new TCOs ensure that the customs duty applied to the goods remains consistent with the intended legislative framework.
Scope and Application
The Tariff Concessions Revocation Instrument No. 30/2008 pertains to the Customs Act 1901, specifically addressing the revocation of Tariff Concession Orders (TCO) under Part XVA of the Act. This legislation applies to entities or individuals who have been granted or are seeking tariff concessions on imported goods. The scope of this instrument is limited to rectifying errors in the description of goods and their tariff classifications as stated in the original TCO. The instrument was enacted by the Chief Executive Officer of Customs, reflecting the Commonwealth’s jurisdiction over customs duties and tariff regulations. The revocation and establishment of new TCOs take effect from the date the original TCO came into force, despite statutory restrictions on retrospective legislative instruments. This minor, machinery-nature change does not require consultation as it does not significantly alter existing arrangements.
Key Provisions
The Tariff Concessions Revocation Instrument 30/2008, made under the Customs Act 1901, primarily addresses the correction of a transcription error in a previously issued Tariff Concession Order (TCO). The operative sections in this context are sections 269C, 269P, and 269SD, which govern the creation, criteria, and correction of TCOs. Section 269C outlines the process for making a TCO, while section 269P stipulates the conditions under which a TCO can be revoked. Section 269SD(3) specifically allows the Chief Executive Officer of Customs (CEO) to revoke a TCO and issue a new one if a transcription error is identified.
Under the Act, the CEO is mandated to ensure that TCOs are accurately described, including the correct tariff classification of the goods. If the CEO identifies a transcription error, they must revoke the incorrect TCO and issue a corrected one, as outlined in section 269SD(3) of the Customs Act 1901. This procedural obligation ensures that the customs duty rates applied to the goods are correct and reflect the intended legislative intent.
Breaching the requirements set forth by the Customs Act 1901, particularly in the context of TCOs, can result in significant consequences. Although the specific penalties for such breaches are not detailed in the provided explanatory statement, it is clear that maintaining accurate and correctly classified TCOs is crucial. Inaccuracies can lead to incorrect customs duty applications, which might result in financial liabilities for importers or exporters, and could also attract scrutiny from regulatory bodies. The potential penalties for non-compliance could include fines, corrections of customs duties, and possibly further legal actions to rectify the breaches.
The Tariff Concessions Revocation Instrument No.30/2008, effective from 12 February 2008, revoked TCO 0712795 and introduced TCO 0801970 to correct the transcription error. The revocation date for the old TCO was backdated to 9 August 2007, indicating that the changes were applied retrospectively to ensure that the correct tariff concessions were applied from the original date of the TCO. This retrospective effect is permissible under the Customs Act 1901, despite the general prohibition in section 12 of the Legislative Instruments Act 2003, as provided by section 269SD(6).