EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 34/2008
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 34/2008 was made on 19 February 2008. It revokes TCO 0716817 and makes TCO 0802776. The tariff classification has been changed from 7317.00.90 to 8305.20.00 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. 34/2008 revoked 0716817 and made new TCO 0802776 on 19 February 2008, with the Revocation date of effect as from 4 October 2007
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the administration of customs and excise duties. Specifically, Part XVA of 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 34/2008 was introduced to address a specific issue concerning the tariff classification of certain goods. The Instrument revokes TCO 0716817 and replaces it with TCO 0802776 due to a change in tariff classification from 7317.00.90 to 8305.20.00, necessitated by an amendment in the Customs Tariff Act 1995. The revocation and creation of the new TCO took effect from 4 October 2007, and the instrument was made on 19 February 2008. The policy objective of this revocation was to ensure that the applicable tariff classification accurately reflects the current legal framework, thus maintaining consistency and fairness in the application of customs duties.
Scope and Application
The Tariff Concessions Revocation Instrument 34/2008, made under the Customs Act 1901, specifically targets Tariff Concession Orders (TCOs) and their revocation and amendment in response to changes in tariff classification. This instrument applies to entities and individuals whose goods are subject to the tariff concessions outlined in the revoked TCO 0716817 and the newly introduced TCO 0802776. The scope of the Act encompasses the geographic territory of Australia and applies to all goods imported into the country under the specified tariff concessions. The changes made by this instrument are effective from the date the previous tariff classification ceased to apply to the goods, which was 4 October 2007, and the new TCO 0802776 is effective from the date of the revocation, 19 February 2008. The instrument was implemented without consultation due to the minor nature of the changes and does not substantially alter existing arrangements. The Act's application is not restricted by jurisdictional boundaries within Australia, applying nationally to all entities subject to customs regulations and the tariff classifications therein.
Key Provisions
The Tariff Concessions Revocation Instrument 34/2008, under the Customs Act 1901, focuses on the revocation of Tariff Concession Orders (TCOs) and the issuance of new ones. Specifically, section 269SD(2) of the Act mandates that if the tariff classification stated in a TCO no longer applies to the goods due to changes in the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. In this case, TCO 0716817 was revoked and replaced by TCO 0802776, effective from 4 October 2007.
Entities governed by the Act must ensure they are aware of and comply with the tariff classifications applicable to their goods. This includes monitoring any changes in the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal that could affect their TCOs. The obligation lies with importers, exporters, and other stakeholders to remain informed and adjust their practices accordingly.
The Instrument further outlines that the revocation of an existing TCO and the creation of a new one have specific effect dates. According to section 269SD(4), the revocation can be effective from the day the original TCO came into force or a later date. Additionally, section 269SD(6) specifies that this process is permissible despite section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments. This ensures that the new TCO 0802776 took effect from the revocation date of 4 October 2007.
Failure to comply with the requirements of the Act, including adherence to the revised tariff classifications and TCOs, can lead to civil or criminal consequences. While the explanatory statement does not detail specific penalties, breaches of customs legislation generally can result in fines, seizure of goods, and potential legal action. The exact penalties would be determined based on the nature and severity of the breach, in line with the broader provisions of the Customs Act 1901.