EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 33/2008
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 33/2008 was made on 19 February 2008. It revokes TCO 0712304 and makes TCO 0802775. The tariff classification has been changed from 3926.40.00 to 3924.90.00 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. 33/2008 revoked 0712304 and made new TCO 0802775 on 19 February 2008, with the Revocation date of effect as from 30 July 2007
Overview
The Tariff Concessions Revocation Instrument 33/2008, enacted to amend the Customs Act 1901, addresses the need to revoke a Tariff Concession Order (TCO) due to changes in tariff classification. This instrument was issued by the Chief Executive Officer of Customs under the authority granted by sections 269C and 269P of the Act, with the primary objective of ensuring that the correct tariff classification applies to the relevant goods. The instrument revokes TCO 0712304 and introduces a new TCO, 0802775, effective from 30 July 2007, due to a change in tariff classification from 3926.40.00 to 3924.90.00. The enactment of this instrument ensures compliance with the Customs Act and maintains the integrity of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 33/2008, made under the Customs Act 1901, addresses the revocation and re-establishment of a Tariff Concession Order (TCO) due to changes in tariff classification. Specifically, the instrument revokes TCO 0712304 and establishes TCO 0802775, effective from 30 July 2007. The instrument applies to the goods specified in the affected TCOs and is concerned with the classification of these goods for customs duty purposes. It is enacted at the Commonwealth level and pertains to the administration of customs duties on imported goods. The revocation and establishment of new TCOs are mandated by the Act when the tariff classification of goods changes, ensuring the continued application of the correct duty rates. The instrument does not require consultation as the changes are deemed minor and of a mechanical nature. The commencement of the revocation and the new TCO is governed by the Customs Act, with specific provisions to allow for the retrospective effect of the instrument, despite legislative constraints on retrospective legislative instruments.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument No. 33/2008 (hereafter the Instrument) include section 269SD(2) which mandates the Chief Executive Officer of Customs (CEO) to revoke a Tariff Concession Order (TCO) if the tariff classification stated in the TCO no longer applies to the goods, and section 269SD(6) which clarifies that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003, which otherwise prohibits certain retrospective legislative instruments. The Instrument revokes TCO 0712304 and makes TCO 0802775, with the tariff classification changing from 3926.40.00 to 3924.90.00 due to a tariff classification change. The revocation and creation of the new TCO both took effect on 19 February 2008, with the Revocation date of effect as from 30 July 2007.
The Instrument imposes obligations on the CEO to ensure that TCOs are kept up to date with changes in tariff classifications. Specifically, section 269SD(2) requires the CEO to revoke a TCO if it is no longer applicable due to an amendment of the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from an officer of Customs. The CEO must also create a new TCO to reflect the updated tariff classification. This ensures that the tariff concessions remain accurate and applicable to the correct goods.
Any failure to comply with the requirements of the Instrument may result in legal consequences. While the explanatory statement does not specify offences or penalties for non-compliance, breaches of the Customs Act 1901, which governs TCOs, can lead to significant civil or criminal penalties. For instance, section 269D of the Customs Act 1901 provides that an entity can be liable for a penalty if it makes a false or misleading statement in an application for a TCO. The maximum penalty for such an offence is generally 10,000 penalty units, as outlined in section 284 of the Act. Similarly, failure to comply with customs duty obligations can result in penalties under section 239 of the Act, which can include fines and imprisonment.
Overall, the Tariff Concessions Revocation Instrument No. 33/2008 ensures that tariff concessions are appropriately updated to reflect changes in tariff classifications, thereby maintaining the integrity of the customs duty system. The obligations imposed on the CEO and potential penalties for non-compliance underscore the importance of adhering to the provisions of the Instrument and the underlying Customs Act 1901.