EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 32/2006
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 32/2006 was made on 18 April 2006. It revokes TCO 0106380 and makes TCO 0606882. The tariff classification has been changed from 8711.90.00 to 8703.21.00 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. 32/2006 revoked 0106380 and made new TCO 0606882 on 18 April 2006.
Overview
The Tariff Concessions Revocation Instrument 32/2006, made under the Customs Act 1901, was introduced to address changes in tariff classifications that affect goods eligible for tariff concessions. This instrument was enacted to ensure that tariff concessions remain aligned with updated tariff classifications, thereby maintaining the integrity of the tariff concession scheme. The instrument was made by the Chief Executive Officer of Customs and was necessitated due to a change in the tariff classification for certain goods, which required the revocation of an existing Tariff Concession Order (TCO) and the issuance of a new one. The policy objective is to ensure that customs duty rates applied to goods remain consistent with their correct tariff classifications, thereby preventing any potential misuse or misinterpretation of tariff concessions. This revocation was a minor adjustment and did not require extensive consultation as it did not substantially alter existing arrangements. The changes took effect from the day the tariff classification ceased to apply to the goods in question.
Scope and Application
The Tariff Concessions Revocation Instrument 32/2006, made under the Customs Act 1901, applies to the revocation and re-establishment of Tariff Concession Orders (TCOs) concerning specific goods, where the applicable tariff classification has changed. This instrument specifically addresses the revocation of TCO 0106380 and the introduction of TCO 0606882 due to a change in tariff classification from 8711.90.00 to 8703.21.00. The Act governs the process through which the Chief Executive Officer of Customs may make or revoke TCOs based on certain criteria, primarily when no substitutable goods are produced in Australia. The instrument's scope extends to goods affected by the tariff changes, and its application is national, as it falls under the Commonwealth jurisdiction. The revocation and new TCO have effect from the day on which the tariff classification change took effect, with the new order applying from the revocation date. Notably, this process is facilitated by sections 269C, 269P, and 269SD of the Customs Act 1901, ensuring the new TCO aligns with the current tariff classification.
Key Provisions
The main operative sections of Tariff Concessions Revocation Instrument 32/2006 (subsections 269SD(2) and 269SD(6) of the Customs Act 1901) outline the conditions under which the Chief Executive Officer of Customs must revoke a Tariff Concession Order (TCO) and create a new one. Specifically, if the CEO is satisfied that the tariff classification stated in a TCO has changed due to an amendment of the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. The revocation and the creation of the new TCO take effect from the day the tariff classification change becomes applicable.
This Act imposes several obligations on the parties involved. The CEO of Customs must carefully review the tariff classifications of goods subject to TCOs to ensure they remain accurate. When a change in tariff classification is identified, the CEO must promptly revoke the existing TCO and issue a new one reflecting the updated classification. Additionally, the Act requires the CEO to consider advice from Customs officers, decisions from the Administrative Appeals Tribunal, and amendments to the Customs Tariff Act 1995 as relevant factors in determining whether a TCO needs to be revoked and reissued.
Failure to comply with the provisions of the Act can result in significant consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of customs regulations typically result in both civil and criminal penalties. Civil penalties may include fines, while criminal penalties can lead to imprisonment. The maximum penalties depend on the severity of the breach and can be found in the relevant sections of the Customs Act 1901. Non-compliance can also result in the loss of tariff concessions, which may increase the cost of importing goods and affect trade practices.