EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 31/2008
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(2) of the Act provides that if the CEO is satisfied that:
− because of an amendment of the Customs Tariff Act 1995; or
− having regard to a decision of a court of the Administrative Appeals Tribunal; or
− having regard to written advice on the matter given by an officer of Customs;
the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO has not, with effect from a particular day, applied 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 the revocation.
Instrument
Tariff Concessions Revocation Instrument No 31/2008 was made on 20 February 2008. It revokes TCO 0713580 and makes TCO 0802591. The tariff classification has been changed from 3921.11.00 to 3921.19.00 because of a tariff classification change.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the order revoking the TCO has effect from the day on which the tariff classification did not apply to the goods. Further the new TCO has effect from the revocation. Subsection 269SD(4) provides that the day may be the day on which the old TCO came into force or a later day.
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. 31/2008 revoked 0713580 and made new TCO 0802591 on 20 February 2008, with the Revocation date of effect as from 24 August 2007
Overview
The Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the administration of customs duties and includes provisions for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The Tariff Concessions Revocation Instrument 31/2008 addresses a gap in the application of tariff concessions due to changes in tariff classifications, ensuring that the correct duty rates are applied to specific goods. This instrument was introduced to rectify an instance where a tariff classification change necessitated the revocation of an existing TCO and the issuance of a new one to maintain compliance with current tariff regulations. The instrument was made on 20 February 2008, revoking TCO 0713580 and establishing TCO 0802591, reflecting a change in tariff classification from 3921.11.00 to 3921.19.00. The policy objective of this instrument is to ensure that customs duties are correctly applied according to the most recent tariff classifications, maintaining the integrity and fairness of the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument 31/2008 operates under the Customs Act 1901 and pertains to Tariff Concession Orders (TCOs) which are established to provide lower rates of customs duty on certain goods. This instrument specifically applies to the revocation of TCO 0713580 and the subsequent creation of TCO 0802591 due to a change in tariff classification. The application of this Act is confined to the entities and individuals who are subject to the customs duty obligations for the goods listed under the revoked and newly created TCOs. The scope of the Act is limited to the Commonwealth jurisdiction, and it does not extend to state or territory legislation. There are no exclusions or exemptions stated in this particular instrument, and it does not specify a threshold. The instrument allows for the extension or restriction of its application through subordinate instruments, as outlined in the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 31/2008 (hereinafter referred to as the Instrument) is a piece of legislation under the Customs Act 1901. It revokes Tariff Concession Order (TCO) 0713580 and introduces a new TCO, 0802591. The primary function of this Instrument, as outlined in sections 269C, 269P, and 269SD of the Act, is to manage and adjust the tariff concessions granted on certain goods by the Chief Executive Officer of Customs (CEO). The CEO is mandated to make an order revoking a TCO if, due to an amendment in the Customs Tariff Act 1995 or a decision of a court or advice from a Customs officer, the tariff classification stated in the TCO no longer applies to the goods in question. This Instrument specifically addresses a change in tariff classification from 3921.11.00 to 3921.19.00, necessitated by a change in tariff classification.
The obligations imposed by this Instrument on the parties or entities it governs are primarily centred around compliance with the new tariff classification. Those dealing with goods previously covered by TCO 0713580 must now adhere to the new TCO 0802591, ensuring that all relevant documentation and declarations reflect the updated tariff classification. This involves updating any records, systems, or processes that were previously aligned with the old tariff concession order to ensure consistency with the new one. The Instrument also necessitates that all stakeholders remain informed about changes in tariff classifications and the implications these changes have on their operations.
In terms of enforcement and compliance, the Instrument outlines the potential consequences for non-compliance with the new tariff classification. While the explanatory statement does not detail specific offences, penalties, or consequences under the Customs Act 1901, it is implied that any failure to comply with the updated tariff classification could lead to legal repercussions. These may include financial penalties, fines, or other civil and criminal consequences as stipulated by the Act. The precise penalties would depend on the nature and extent of the non-compliance, and could potentially involve significant financial and reputational risks for those affected.
Given that the Instrument revokes an existing TCO and introduces a new one, it is imperative for all relevant parties to ensure they are fully compliant with the new provisions. This includes updating their records, systems, and practices to align with the new tariff classification, and potentially seeking legal advice to understand the full implications of these changes. The Instrument ensures that the tariff concessions remain aligned with the current tariff classifications, maintaining the integrity of the customs duty system and preventing any misuse or circumvention of the legislative framework.