EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 34/2010
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 34/2010 was made on 20 November 2009. It revokes TCO 0803010 and makes TCO 0943624. The tariff classification has been changed from 7306.30.00 to 7306.19.00 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. 34/2010 revoked 0803010 and made new TCO 0943624 on 20 November 2009, with the Revocation date of effect as from 22 February 2008
Overview
The Tariff Concessions Revocation Instrument 34/2010 was enacted to address a specific issue concerning the application of tariff concessions under the Customs Act 1901. This legislation was introduced to respond to a situation where the tariff classification of certain goods had changed due to amendments in the Customs Tariff Act 1995, or following a decision of the Administrative Appeals Tribunal, or written advice from an officer of Customs. The primary purpose of this instrument was to ensure that the tariff concessions remained aligned with the current tariff classification of goods. Enacted by the Chief Executive Officer of Customs, the instrument revokes Tariff Concession Order (TCO) 0803010 and introduces a new TCO 0943624, reflecting the updated tariff classification. The policy objective is to maintain the integrity and accuracy of tariff concessions, thereby ensuring that the correct customs duty rates are applied to imported goods. The instrument was made on 20 November 2009, and its effect dates back to 22 February 2008, aligning with the day the tariff classification change took effect.
Scope and Application
The Tariff Concessions Revocation Instrument 34/2010 applies to goods that were subject to Tariff Concession Order (TCO) 0803010, which has been revoked and replaced by TCO 0943624. This change is a result of alterations in tariff classifications that took effect from 22 February 2008. The instrument operates under the Customs Act 1901, extending its reach to all entities and individuals dealing with the importation of goods that were previously subject to the revoked tariff concession. The geographic scope of this legislation is national, as it pertains to customs duties applied across Australia. The instrument ensures that any goods affected by the change in tariff classification now adhere to the new TCO, with the revised classification from 7306.30.00 to 7306.19.00. The revocation and establishment of new TCOs are executed without the need for consultation due to the minor nature of the change. The commencement of the new order is aligned with the day the previous tariff classification ceased to apply, effectively ensuring that the changes do not create any retrospective legal effects, despite the provisions of the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 34/2010, under the Customs Act 1901 (sections 269C, 269P, 269SD(2), and 269SD(4)), revokes Tariff Concession Order (TCO) 0803010 and establishes a new TCO 0943624. This change was necessitated by a revision in the tariff classification from 7306.30.00 to 7306.19.00, effective from 22 February 2008. The Chief Executive Officer of Customs (CEO) made this decision based on an amendment in the Customs Tariff Act 1995. The revocation of TCO 0803010 and the implementation of TCO 0943624 took effect on 20 November 2009, the date the instrument was made.
Entities and parties governed by the Customs Act 1901, particularly those benefiting from the tariff concessions, must comply with the new TCO 0943624. This includes ensuring that the new tariff classification is correctly applied to the goods in question, and that any relevant documentation or declarations are updated to reflect this change. Importers, exporters, and other stakeholders must adhere to the updated tariff classifications as per the new TCO to avoid any discrepancies in customs duty payments or other compliance issues.
Failure to comply with the new tariff concessions as outlined in TCO 0943624 could lead to legal consequences. The Customs Act 1901 provides for various penalties for breaches of the Act, which may include fines, imprisonment, or both, depending on the severity of the breach. The specific penalties are not detailed in the explanatory statement but can be found in the relevant sections of the Customs Act 1901. Given the nature of the changes, it is crucial for parties involved to ensure they are fully compliant with the new order to avoid any legal repercussions.