EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 33/2007
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
Amcor Packaging (Australia) Pty Ltd requested that the CEO revoke TCO 0700804 which covers aerosol cans.
Instrument
Tariff Concessions Revocation Instrument No 33/2007 was made on 7 February 2007. It revokes TCO 0700804 as the CEO is satisfied that Amcor Packaging (Australia) Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) 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.33/2007 revoked 0700804 on 7 February 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, governs customs and border control matters within Australia. Specifically, Part XVA of the Act outlines a framework for Tariff Concession Orders (TCOs), which allow for reduced customs duty rates on certain goods. The Tariff Concessions Revocation Instrument 33/2007 was introduced to address a gap in the legislative framework concerning the revocation of TCOs. The instrument was enacted to provide a formal process for revoking TCOs when it is demonstrated that substitutable goods are produced in Australia, thus meeting the core criteria for the revocation of such orders. The policy objective is to ensure that tariff concessions are only granted when genuinely necessary, thereby supporting fair trade practices and protecting domestic industries.
Scope and Application
The Tariff Concessions Revocation Instrument 33/2007 applies to the Customs Act 1901, specifically within Part XVA which governs the making and revocation of Tariff Concession Orders (TCOs). These orders are made by the Chief Executive Officer of Customs (CEO) and pertain to the application of lower rates of customs duty on certain goods. The revocation process is triggered when a request is made by a producer in Australia of goods that are substitutable to those covered by a TCO. The CEO must revoke the TCO if satisfied that the requesting party is indeed a producer of substitutable goods and that the TCO would not have been made if the request had been lodged on the day the original TCO application was made. The instrument revokes TCO 0700804 for aerosol cans following a request by Amcor Packaging (Australia) Pty Ltd. The CEO is mandated to publish a notice in a Gazette as soon as practicable after receiving a revocation request, detailing the request and the particulars of the TCO. The revocation takes effect on the day the request is lodged, notwithstanding the prohibition on retrospective legislative instruments under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 33/2007 (the Instrument) is primarily concerned with revoking Tariff Concession Order (TCO) 0700804, which applies to aerosol cans, in accordance with sections 269C, 269P, and 269SB of the Customs Act 1901. The Instrument was enacted because Amcor Packaging (Australia) Pty Ltd applied for the revocation of TCO 0700804, and the Chief Executive Officer of Customs (CEO) was satisfied that Amcor Packaging was a producer of substitutable goods in Australia (subsection 269SC(1)). Furthermore, the CEO determined that had the TCO not been in force, it would not have been granted in the first place (subsection 269SC(3)). The revocation of TCO 0700804 took effect on 7 February 2007, the same day the Instrument was made.
The Act imposes specific obligations on the CEO regarding the revocation of TCOs. According to subsection 269SC(1A), upon receiving a request for the revocation of a TCO, the CEO must promptly publish a notice in the Gazette. This notice must include a statement confirming the receipt of the request and provide full details of the TCO in question. Additionally, the CEO must make a revocation order if satisfied that the applicant is a producer of substitutable goods in Australia and that the TCO would not have been made if the application had been lodged on the day the request for revocation was made (subsections 269SC(1) and (3)). The Instrument ensures that these obligations are met in the case of TCO 0700804.
The revocation of TCO 0700804 under the Instrument does not directly impose criminal or civil penalties on any party. However, it is important to note that any breach of the Customs Act 1901, including non-compliance with provisions related to TCOs, could potentially result in enforcement actions. For instance, section 276 of the Customs Act outlines various criminal offences and associated penalties for contravening the Act, which could include fines and imprisonment. Additionally, section 281A imposes penalties for making false or misleading statements in relation to customs matters, which may also be applicable in the context of TCO applications and revocations.