EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 34/2009
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 34/2009 was made on 15 August 2008. It revokes TCO 0805922 and makes TCO 0825010. The tariff classification has been changed from 9405.40.00 to 9405.10.00 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. 34/2009 revoked 0805922 and made new TCO 0825010 on 15 August 2008, with the Revocation date of effect as from 30 April 2008
Overview
The Tariff Concessions Revocation Instrument 34/2009 was enacted to address a discrepancy in tariff classification that arose due to an amendment in the Customs Tariff Act 1995. This Instrument, made under the authority of the Customs Act 1901, revokes Tariff Concession Order (TCO) 0805922 and replaces it with TCO 0825010. The Customs Act 1901 provides a framework for the application and revocation of TCOs by the Chief Executive Officer of Customs, ensuring that lower rates of customs duty apply to goods under specific circumstances, such as the absence of Australian production of substitutable goods. The revocation and subsequent creation of new TCOs aim to align the tariff classification with the updated legal framework, reflecting the changes necessitated by the amendment in the Customs Tariff Act. The Instrument was enacted to ensure that the tariff concessions continue to be applied correctly and in accordance with the current tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 34/2009, made under the Customs Act 1901, applies to goods that were previously subject to Tariff Concession Order (TCO) 0805922, which has been revoked and replaced with TCO 0825010. This instrument specifically concerns the alteration of tariff classifications, thereby affecting the application of customs duties to certain goods. The instrument is a response to a change in tariff classification, as outlined in the Customs Tariff Act 1995, which necessitated the revocation of the existing TCO and the creation of a new one. The new TCO, effective from the date of revocation, ensures that the correct tariff classification is applied to the goods in question. The revocation and new TCO are in effect from the day when the previous tariff classification ceased to apply, as specified by subsection 269SD(2) of the Act, which also mandates that the changes are implemented despite certain prohibitions on retrospective legislative instruments under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 34/2009 (sections 269C, 269P, and 269SD) revokes Tariff Concession Order (TCO) 0805922 and introduces a new TCO 0825010. This legislation, made on 15 August 2008, addresses the revocation of tariff concessions due to a change in tariff classification. Specifically, the change alters the classification from 9405.40.00 to 9405.10.00 because of an amendment in the Customs Tariff Act 1995. These provisions ensure that the correct tariff classification applies to the goods in question, reflecting the most current tariff structure.
Under this Act, the Chief Executive Officer of Customs (CEO) is mandated to issue or revoke TCOs based on specific criteria, primarily concerning the production status of substitutable goods in Australia. The CEO must make an order revoking a TCO if it is determined that the tariff classification stated in the TCO no longer applies due to certain events such as amendments to the Customs Tariff Act 1995, court decisions, or written advice from a Customs officer. Once a TCO is revoked, the CEO is required to issue a new TCO that reflects the correct tariff classification.
The obligations imposed by this legislation on parties and entities include ensuring that they are aware of the tariff classifications applicable to their goods and comply with the terms of the TCOs. Businesses and importers must stay informed about any changes in tariff classifications and adjust their practices accordingly. The CEO's role involves closely monitoring tariff changes and acting promptly to revoke and reissue TCOs as necessary.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 34/2009 can result in significant consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act generally can lead to civil and criminal penalties. Civil penalties may include fines, and in severe cases, criminal penalties may apply, potentially resulting in imprisonment. The exact penalties would depend on the nature and severity of the breach.