EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 32/2012
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
− makes two new TCO in respect of the goods with effect from that day.
Instrument
Tariff Concessions Revocation Instrument Number 32/2012 was made on
22 November 2011. This instrument revokes 0613933 of classification 8507.80.00 and makes new TCO 1130464 of classification 8507.50.00 and TCO 1130471 of classification 8507.60.00. 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 32/2012 revokes TCO 0613933 and makes new TCO 1130464 and TCO 1130471 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 32/2012 was enacted in 2012 to address changes in the Customs Tariff Act 1995, which required corresponding adjustments in the applicable tariff concession orders under the Customs Act 1901. This instrument was introduced by the Chief Executive Officer of Customs, pursuant to the authority granted under sections 269C, 269P, and 269SD(2A) of the Customs Act 1901. The policy objective is to ensure that tariff concessions remain aligned with current tariff classifications, thereby maintaining consistency in customs duty rates applicable to imported goods. The instrument revokes certain tariff concession orders and introduces new ones to reflect the updated tariff classifications as specified in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which came into effect from 1 January 2012.
Scope and Application
The Tariff Concessions Revocation Instrument 32/2012 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) that are issued by the Chief Executive Officer of Customs. The Act applies to any goods that fall under the classifications affected by the revocation of TCO 0613933 and the creation of new TCOs 1130464 and 1130471. These changes were necessitated by amendments to the Customs Tariff Act 1995, as detailed in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The new classifications, which became effective from 1 January 2012, alter the tariff concessions that apply to certain goods, impacting those involved in the importation and classification of these goods. The geographic reach of this Act is national, applying across all states and territories in Australia. The instrument does not specify exclusions or exemptions, implying that it applies universally within its defined scope. The scope of the Act may be extended or restricted through subordinate instruments, which can provide further detail on the application of the new tariff concessions.
Key Provisions
The Tariff Concessions Revocation Instrument 32/2012, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0613933 and replaces it with two new TCOs, 1130464 and 1130471 (sections 1 and 2). These changes are in response to amendments to the Customs Tariff Act 1995, specifically the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012. The new TCOs apply to goods classified under headings 8507.50.00 and 8507.60.00, replacing the previous classification under heading 8507.80.00.
The Chief Executive Officer of Customs (CEO) has the authority to make and revoke TCOs under sections 269C and 269P of the Customs Act 1901. A TCO can be made if the application meets the core criteria, specifically that no substitutable goods were produced in Australia on the day the application was lodged (subsection 269SD(2A)). The CEO must revoke a TCO if, due to an amendment in the Customs Tariff Act 1995, the tariff classification specified in the TCO will no longer apply to the goods from a particular date. Additionally, the CEO must issue two new TCOs for the affected goods from that date.
The new TCOs impose specific obligations on the parties involved, primarily those importing the goods classified under the new headings. Importers must ensure their goods are correctly classified under the new tariff codes, 8507.50.00 and 8507.60.00, to avail of the lower customs duty rates applicable under these orders. Importers must also comply with any other relevant customs regulations and procedures stipulated under the Customs Act 1901. The revocation and creation of new TCOs require importers to update their classification and duty calculations to avoid any non-compliance.
Breaches of the provisions of the Customs Act 1901 or the Tariff Concessions Revocation Instrument 32/2012 may result in penalties. Under the Customs Act 1901, non-compliance with customs regulations, including incorrect classification of goods, can lead to civil and criminal penalties. Civil penalties include fines up to a specified amount, and in more severe cases, criminal penalties can be imposed, including fines and imprisonment. The exact penalties depend on the nature and extent of the breach, with specific maximum penalties outlined in the Customs Act 1901.