EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 33/2009
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 33/2009 was made on 28 August 2008. It revokes TCO 0803137 and makes TCO 0811606. The tariff classification has been changed from 8903.92.10 to 8903.99.10 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. 33/2009 revoked 0803137 and made new TCO 0811606 on 28 August 2008, with the Revocation date of effect as from 25 February 2008
Overview
The Customs Act 1901, enacted by the Australian Parliament, outlines a framework for the imposition and management of customs duties. To address the need for flexibility in tariff classifications and to ensure that the application of duty remains fair and efficient, the Act allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The Tariff Concessions Revocation Instrument 33/2009, made on 28 August 2008, specifically addresses a situation where the tariff classification for certain goods needed adjustment due to a change in the Customs Tariff Act 1995. This legislative instrument revokes TCO 0803137 and establishes a new TCO, 0811606, reflecting the updated tariff classification, effective from 25 February 2008. The instrument's creation adheres to the provisions set out in the Customs Act 1901, ensuring that the necessary adjustments are made in a timely and effective manner, thereby maintaining the integrity and effectiveness of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 33/2009, pursuant to the Customs Act 1901, applies to the revocation of a specific Tariff Concession Order (TCO) and the issuance of a new TCO in its place. This instrument is directly concerned with the alteration of tariff classifications as a result of changes in the Customs Tariff Act 1995, decisions from the Administrative Appeals Tribunal, or written advice from an officer of Customs. The act affects entities or individuals who are subject to the conditions of the revoked TCO and the new TCO. The instrument operates within the Commonwealth jurisdiction, as it is an instrument under the Customs Act 1901, which is a federal act. The revocation and creation of new TCOs have a specific effect date, which can be the day the original TCO came into force or a later specified date. Notably, the instrument takes effect despite provisions in the Legislative Instruments Act 2003 that generally prohibit retrospective legislative instruments, ensuring that the changes in tariff classifications are applied from the date they become applicable.
Key Provisions
The Tariff Concessions Revocation Instrument 33/2009, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0803137 and introduces a new TCO, 0811606. This instrument was created to respond to a change in tariff classification, which necessitated adjustments to the applicable customs duty rates on certain goods. Specifically, section 269SD(2) of the Act mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO and issue a new one if the tariff classification for the goods changes, and the change takes effect from a particular day (sections 269SD(2) and 269SD(4)).
The obligations imposed by this Act on the parties involved are primarily on the CEO of Customs. The CEO must ensure that any changes in tariff classification that impact the goods specified in a TCO are addressed by revoking the existing TCO and issuing a new one that reflects the updated tariff classification. This process ensures that the customs duty rates applied to the goods remain accurate and compliant with current tariff regulations.
Failure to comply with the provisions of the Customs Act 1901 or the Tariff Concessions Revocation Instrument 33/2009 could result in legal consequences. Although specific offences and penalties are not detailed within the explanatory statement, breaches of the Act can lead to civil or criminal liabilities. The penalties for such breaches can include fines and imprisonment, as stipulated under the Customs Act. The exact penalties would depend on the nature and severity of the breach, as well as any additional provisions that may apply under other relevant legislation. The revocation instrument itself, however, does not specify maximum penalties, and these would need to be referred to in the primary Act or associated regulations.