EXPLANATORY STATEMENT
Tariff Concession Revocation Instrument 32/2005
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 32/2005 was made on 13 December 2005. It revokes TCO 0514857 and makes TCO 0516752. The tariff classification has been changed from 6902.10.00 to 6815.99.00 because 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 Concession Revocation Instrument No. 32/2005 revoked 0514857 and made new TCO 0516752 on 13 December 2005.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be created and revoked by the Chief Executive Officer of Customs. These orders allow for reduced customs duty rates on specified goods. The Tariff Concession Revocation Instrument 32/2005 was introduced to address the issue of tariff classification changes that impact the application of concessional rates to certain goods. The instrument was made on 13 December 2005, revoking TCO 0514857 and issuing a new TCO 0516752 to reflect the altered tariff classification from 6902.10.00 to 6815.99.00. This change was due to a tariff reclassification, and the instrument ensures that the concessional duty rates are appropriately aligned with the new classification. The policy objective behind this revocation and re-establishment of a TCO is to maintain the integrity of the tariff concession scheme by ensuring that the correct duty rates are applied to goods, in accordance with the prevailing tariff classifications.
Scope and Application
The Tariff Concession Revocation Instrument 32/2005 amends the Customs Act 1901 to adjust the tariff classification of certain goods, thereby affecting the application of tariff concession orders (TCO) within the Commonwealth of Australia. This legislation applies to entities and individuals who import goods subject to a TCO, particularly those affected by the revised tariff classification from 6902.10.00 to 6815.99.00. The changes were made to ensure that the tariff classification accurately reflects the goods as per the Customs Tariff Act 1995, following a necessary adjustment. The scope of this instrument is limited to the specific TCO 0514857, which was revoked, and the new TCO 0516752 that was established in its place. The revocation and creation of these orders are governed by the conditions set forth in the Customs Act, specifically under sections 269C, 269P, and 269SD, which require the Chief Executive Officer of Customs to act upon changes in tariff classifications or court decisions. The instrument does not extend to other TCOs or different types of goods unless similarly affected by tariff classification amendments. The changes come into effect from the date specified in the revocation order, ensuring that the revised tariff classification is applied prospectively from the point it ceased to be applicable.
Key Provisions
The Tariff Concession Revocation Instrument 32/2005, made under the Customs Act 1901, primarily concerns the revocation of Tariff Concession Order (TCO) 0514857 and the establishment of a new TCO, numbered 0516752. The instrument was issued on 13 December 2005. This change was made in response to an amendment in the tariff classification, shifting from 6902.10.00 to 6815.99.00. This adjustment was necessary as the previous tariff classification no longer applied to the goods in question, necessitating an update to the concession order to reflect the current classification accurately.
Under this legislation, the Chief Executive Officer of Customs (CEO) is mandated to revoke a TCO if they are satisfied that the tariff classification stated in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. This requirement is detailed in subsection 269SD(2) of the Customs Act 1901. The revocation of the TCO and the creation of a new one must take effect from the day the old tariff classification ceased to apply to the goods, as stipulated by subsection 269SD(2). This ensures that the customs duty rates are appropriately aligned with the current tariff classifications.
The obligations imposed on the relevant parties, primarily the CEO, include the responsibility to monitor and respond to changes in tariff classifications. If the CEO determines that a TCO is no longer valid due to changes in tariff classifications, they must promptly revoke the existing TCO and issue a new one that reflects the current classification. This duty is critical to maintaining the accuracy and effectiveness of the customs duty regime. Failure to adhere to these obligations can lead to discrepancies in the application of customs duties, potentially resulting in legal and financial implications for importers and exporters.
Breaches of the requirements set out in this legislation could lead to significant consequences. While specific offences and penalties are not detailed within the explanatory statement, the broader Customs Act 1901 outlines various penalties for non-compliance with customs regulations, including fines and potential criminal charges. The exact penalties would depend on the nature and severity of the breach, and could be subject to further interpretation and application by the relevant authorities. It is therefore crucial for all parties involved to ensure strict compliance with the terms of the TCOs and the provisions of the Customs Act 1901.