EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 33/2006
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 33/2006 was made on 18 April 2006. It revokes TCO 0604920 and makes TCO 0606960 and TCO 0606994. The tariff classification has been changed from 8708.31.99 to 8708.31.99 and 8708.39.99 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 Concessions Revocation Instrument No. 33/2006 revoked 0604920 and made new TCOs 0606960 and 0606994 on 18 April 2006.
Overview
The Customs Act 1901 was enacted to provide for the administration of customs and excise duties, among other things. The Tariff Concessions Revocation Instrument 33/2006 was introduced to address the revocation of specific Tariff Concession Orders (TCOs) due to changes in tariff classification, ensuring that the appropriate duty rates are applied to relevant goods. This instrument was made under the authority of the Chief Executive Officer of Customs, as per sections 269C, 269P, and 269SD of the Customs Act 1901. The policy objective is to maintain the integrity of the tariff concession scheme by ensuring that the concessions apply correctly based on the prevailing tariff classifications. The instrument revokes TCO 0604920 and establishes new TCOs 0606960 and 0606994, effective from the date the previous tariff classification ceased to apply. The revocation and creation of these orders were necessary to align with updated tariff classifications, reflecting changes in the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 33/2006, under the Customs Act 1901, pertains specifically to the revocation of certain Tariff Concession Orders (TCOs) and the issuance of new ones. This instrument applies to the goods subject to the affected TCOs, allowing for a revised tariff classification in accordance with changes in the Customs Tariff Act 1995 or decisions by the Administrative Appeals Tribunal. The geographic reach of this Act is national, affecting all entities and persons involved in the importation of the specified goods within Australia. The revocation and creation of new TCOs under this Instrument ensure that the correct customs duty rates are applied, reflecting updated tariff classifications. The Instrument's application extends to the entire Commonwealth, ensuring consistency across state and territory borders. Notably, the Instrument does not require extensive consultation due to the minor and machinery nature of the changes involved. The commencement of the revocation and the new TCOs is effective from the day the previous tariff classification ceased to apply, or a subsequent date as stipulated in the Instrument, and this is executed despite the restrictions on retrospective legislative instruments as outlined in the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 33/2006, under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0604920 and introduces new TCOs 0606960 and 0606994, effective from 18 April 2006. These orders adjust tariff classifications, which in turn affect the customs duty rates applicable to certain goods. The new orders were made under sections 269C and 269P of the Act, which allow for the creation of TCOs when specific criteria are met, such as when no substitutable goods are produced in Australia. The revocation and creation of these orders are mandated by subsection 269SD(2) of the Act, which requires the Chief Executive Officer of Customs to take these actions if there has been a change in tariff classification due to an amendment in the Customs Tariff Act 1995, a decision by a court or the Administrative Appeals Tribunal, or advice from an officer of Customs.
Entities and parties subject to the Act must comply with the new tariff classifications set out in TCOs 0606960 and 0606994. This involves ensuring that the relevant goods are correctly classified for customs purposes, which impacts the duty payable upon importation. The obligation extends to updating any relevant records, documentation, and systems to reflect the new classifications. Businesses involved in importing these goods must also be aware of the changes and adjust their import declarations and duty calculations accordingly.
Failure to comply with the new tariff classifications as specified in the revoked and newly created TCOs may result in civil or criminal consequences. Under the Customs Act, non-compliance with the provisions can lead to penalties. The maximum penalties for contravening the Act are outlined in section 249 of the Customs Act 1901, which includes fines of up to 10,000 penalty units or imprisonment for up to five years, or both, for serious offences. In addition to these penalties, businesses may also face financial repercussions such as the payment of additional duties or interest on unpaid duties. Therefore, it is crucial for all relevant parties to ensure their compliance with the new tariff classifications to avoid these adverse consequences.