EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 32/2008
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 32/2008 was made on 19 February 2008. It revokes TCO 0714651 and makes TCO 0802774. The tariff classification has been changed from 8418.50.00 to 8418.69.00 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. 32/2008 revoked 0714651 and made new TCO 0802774 on 19 February 2008, with the Revocation date of effect as from 7 September 2007
Overview
The Customs Act 1901, enacted by the Parliament of Australia, establishes a framework for tariff concession orders, which apply lower rates of customs duty to certain goods. The Tariff Concessions Revocation Instrument 32/2008 was introduced to address the need for adjustments to tariff classifications that affect the applicability of existing tariff concession orders. This instrument revokes an existing tariff concession order (TCO 0714651) and replaces it with a new TCO (TCO 0802774), following a change in tariff classification from 8418.50.00 to 8418.69.00. The instrument was made on 19 February 2008, effective from 7 September 2007, following the amendment to the Customs Tariff Act 1995. The revocation and replacement of the tariff concession order were executed without the need for consultation due to the minor and administrative nature of the change. The commencement of the new TCO follows the effective date of the tariff classification change, ensuring continuity in the tariff concessions applicable to the affected goods.
Scope and Application
The Tariff Concessions Revocation Instrument 32/2008 applies to entities and persons who benefit from the tariff concessions specified under the Customs Act 1901, particularly those affected by the revoked Tariff Concession Order (TCO) 0714651 and the newly established TCO 0802774. This legislation affects those involved in the importation of goods subject to these tariff classifications, impacting their customs duty obligations. The instrument operates within the Commonwealth jurisdiction, governed by the Customs Act 1901. The revocation and establishment of the new TCO are specifically due to a change in tariff classification, necessitating an adjustment in the applicable customs duty rates. The scope of the Act is extended through subordinate instruments such as this revocation instrument, which ensures the ongoing relevance and accuracy of tariff classifications in line with amendments to the Customs Tariff Act 1995 or judicial decisions. The instrument excludes any consultation processes due to the minor and machinery nature of the change.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument No 32/2008 include sections 269C, 269P, 269SD, and 269SD(2) of the Customs Act 1901. Section 269C provides the process for making a Tariff Concession Order (TCO), while section 269P outlines the requirements for such an order. Section 269SD(2) specifically addresses the circumstances under which a TCO may be revoked. The Instrument revokes TCO 0714651 and establishes TCO 0802774 due to a change in tariff classification from 8418.50.00 to 8418.69.00, a change that resulted from an amendment to the Customs Tariff Act 1995.
The obligations imposed on the parties or entities governed by the Act include ensuring that the tariff classification applied to goods subject to a TCO remains accurate. The Chief Executive Officer of Customs (CEO) is tasked with making an order to revoke the existing TCO and issue a new one if the tariff classification changes due to factors such as an amendment to the Customs Tariff Act 1995, a court decision, or written advice from an officer of Customs. These actions must be taken to ensure that the correct tariff concessions are applied to the appropriate goods.
There are no specific offences, penalties, or civil/criminal consequences outlined in the Instrument for the revocation of a TCO or the issuance of a new TCO. However, failure to comply with the terms of a TCO or the subsequent revocation and reissuance may lead to incorrect tariff application, which could result in disputes or legal challenges regarding the appropriate duty rates for the affected goods. The Instrument ensures that the tariff classification is correctly applied, thereby maintaining the integrity of the tariff concession scheme.