EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 30/2012
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 Number 30/2012 was made on
25 January 2012. This instrument revokes 1111666 of classification 7615.19.00 and makes new TCO 1202313 of classification 7615.10.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
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 Number 30/2012 revokes TCO 1111666 and makes new TCO 1202313 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 30/2012, made on 25 January 2012, was enacted to address discrepancies arising from amendments to the Customs Tariff Act 1995. This instrument revokes Tariff Concession Order 1111666 and replaces it with Tariff Concession Order 1202313, reflecting changes necessitated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012. The Customs Act 1901 provides the legislative framework under which these revocations and new concessions are made, with the Chief Executive Officer of Customs being the designated authority to manage such changes. The policy objective is to ensure the continued application of appropriate tariff concessions in line with updated tariff classifications, thereby maintaining the integrity and effectiveness of the tariff concession scheme. No consultation was deemed necessary for this minor, machinery-related change.
Scope and Application
The Tariff Concessions Revocation Instrument 30/2012 operates under the framework established by Part XVA of the Customs Act 1901, which allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This particular instrument revokes the previously applicable TCO 1111666 for certain aluminium goods under classification 7615.19.00 and introduces a new TCO 1202313 for the same goods but under classification 7615.10.00, reflecting amendments made by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The revocation and creation of these orders have effect from 1 January 2012, the day when the changes in tariff classifications took effect. The instrument does not require consultation as the changes are deemed minor and of a machinery nature, not substantially altering existing arrangements. The geographic reach of this instrument is national, applying to all goods subject to the Customs Act 1901 across Australia, and it extends to entities or individuals involved in the importation of the affected goods.
Key Provisions
The Tariff Concessions Revocation Instrument 30/2012, under the Customs Act 1901, outlines key provisions that govern tariff concessions on certain goods. Specifically, this instrument revokes Tariff Concession Order (TCO) 1111666 and establishes a new TCO, 1202313, effective from 1 January 2012 (section 269SD(2A)). The revocation and establishment of these orders are a response to amendments in the Customs Tariff Act 1995, which were implemented through the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
Under this instrument, the Chief Executive Officer of Customs (CEO) has the authority to revoke existing TCOs if changes in tariff classifications, as per the Customs Tariff Act 1995, render the existing classifications inapplicable to the goods in question. The CEO must then issue a new TCO reflecting the updated tariff classification. The obligations imposed on the parties governed by this Act include ensuring that any goods subject to the TCOs are correctly classified according to the updated tariff codes, and that any necessary adjustments are made to comply with the new TCO.
The instrument stipulates that no consultation was undertaken for these changes, as they are considered minor and of a machinery nature, without substantially altering existing arrangements. The revocation and creation of new TCOs take effect from the date specified, ensuring that the changes are implemented without delay (section 269SD(2A)).
Breach of the provisions set out in this instrument could lead to non-compliance with customs regulations, potentially resulting in additional duties, fines, or other penalties. While the explanatory statement does not detail specific penalties, it is important to note that under the Customs Act 1901, failure to comply with customs regulations can result in substantial financial penalties and other legal consequences. The exact penalties would depend on the nature and severity of the breach, but they could include fines and potential criminal charges for serious or repeated violations.