EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 34/2007
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.
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 34/2007 was made on 9 February 2007. It revokes TCO 0618418 and makes TCO 0701950. The tariff classification has been changed from 8428.50 to 8428.50.00 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. 34/2007 revoked 0618418 and made new TCO 0701950 on 9 February 2007.
Overview
The Tariff Concessions Revocation Instrument 34/2007 was enacted to address a specific issue related to tariff classifications under the Customs Act 1901. This instrument was made by the Chief Executive Officer of Customs under sections 269C and 269P of the Act, which outline the conditions for making and revoking Tariff Concession Orders (TCOs). The primary purpose of this instrument was to revoke TCO 0618418 and to establish a new TCO 0701950 following a change in tariff classification. This change was necessitated by an amendment to the Customs Tariff Act 1995, which altered the tariff classification from 8428.50 to 8428.50.00. The instrument was implemented on 9 February 2007, and it ensures that the new TCO applies from the day the tariff classification ceased to be applicable to the goods in question. The revocation and creation of the new TCO were necessary to maintain the integrity and relevance of the tariff concessions scheme under the Customs Act.
Scope and Application
The Tariff Concessions Revocation Instrument 34/2007, made under the Customs Act 1901, applies to specific goods that were subject to a Tariff Concession Order (TCO) and have undergone a change in tariff classification. This instrument is relevant to any entities or individuals dealing with these particular goods, particularly those involved in importing or exporting them, as it alters the customs duty rates applicable. The revocation of TCO 0618418 and the creation of TCO 0701950, effective from the date of the instrument’s making, ensures that the updated tariff classification is accurately reflected in the customs duties. The geographic reach of this instrument is national, impacting all areas within Australia where the affected goods are traded. No exemptions or exclusions are explicitly stated, implying that the changes apply universally to the specified goods. The Instrument is a direct application of the Customs Act 1901 and its associated provisions, and it operates within the jurisdiction of the Commonwealth, thereby extending the scope of the Act through subordinate legislation.
Key Provisions
The Tariff Concessions Revocation Instrument 34/2007 (sections 269C, 269P, and 269SD of the Customs Act 1901) is an instrument that addresses the revocation of a Tariff Concession Order (TCO) and the establishment of a new TCO. Specifically, it revokes Tariff Concession Order 0618418 and establishes Tariff Concession Order 0701950, reflecting a change in tariff classification due to an amendment in the Customs Tariff Act 1995. This instrument is made under the authority of the Chief Executive Officer of Customs (CEO) and is effective from the date on which the previous tariff classification ceased to apply to the goods in question.
The obligations imposed by this Act primarily revolve around the CEO's responsibility to ensure that the correct tariff classifications are applied to goods subject to a TCO. When the CEO is satisfied that a tariff classification no longer applies to goods due to an amendment in the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from a Customs officer, they must revoke the existing TCO and issue a new one with the updated classification. This ensures that the goods continue to benefit from the appropriate tariff concessions without any legal discrepancies.
Breaching the provisions of this Act can lead to significant legal consequences. While the specific offences and penalties are not detailed in the explanatory statement, it is implicit that non-compliance with the CEO’s orders to revoke or establish TCOs could result in the imposition of incorrect customs duties. This could lead to financial penalties for importers and exporters, as well as potential legal action for failing to adhere to the statutory requirements. The penalties for such breaches are not explicitly stated in the explanatory statement but would typically involve fines and other corrective measures as stipulated in the Customs Act 1901. The revocation and establishment of new TCOs under this instrument are designed to maintain the integrity of the tariff concession scheme and ensure that goods are appropriately classified and taxed.