EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 34/2012
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 34/2012 was made on 06 August 2010. It revokes TCO 1014956 and makes TCO 1035949. The tariff classification has been changed from 8428.90.00 to 8479.89.90 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. 34/2012 revoked 1014956 and made new TCO 1035949 on 06 August 2010, with the Revocation date of effect as from 06 August 2010.
Overview
The Tariff Concessions Revocation Instrument 34/2012, enacted under the Customs Act 1901, was introduced to address a specific gap in the tariff classification of goods within the Australian customs regime. This instrument was designed to rectify a situation where the tariff classification of goods, as specified in a Tariff Concession Order (TCO), had changed due to amendments in the Customs Tariff Act 1995 or decisions by the Administrative Appeals Tribunal. The instrument was issued by the Chief Executive Officer of Customs, acting under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. The primary policy objective of this instrument was to ensure that the tariff classification for goods remains accurate and reflective of current legislative changes, thereby maintaining consistency and fairness in the application of customs duties. The instrument was enacted to streamline the process of adjusting tariff classifications without necessitating substantial legislative amendments or extensive consultations.
Scope and Application
The Tariff Concessions Revocation Instrument 34/2012, made under the Customs Act 1901, concerns the revocation of Tariff Concession Order 1014956 and the introduction of Tariff Concession Order 1035949. This legislative instrument applies to goods subject to the specified tariff concession orders, which are determined by the Chief Executive Officer of Customs. The primary focus is on the tariff classifications of these goods, specifically the change from classification 8428.90.00 to 8479.89.90, necessitated by a change in the tariff classification. The revocation and the new order came into effect on the same day, 06 August 2010, in accordance with the provisions of the Customs Act. This instrument has a direct impact on entities and industries that import or export goods affected by these tariff classifications, ensuring that they comply with the updated duty rates. The instrument operates within the Commonwealth jurisdiction and applies nationally, impacting all entities involved in the importation or exportation of the affected goods across Australia.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 34/2012 (subsection 269SD(2)) specify that the Chief Executive Officer (CEO) of Customs must revoke a Tariff Concession Order (TCO) and make a new TCO if the tariff classification of the goods has changed due to an amendment in the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or advice from a Customs officer. This revocation and creation of a new TCO are mandated when the tariff classification that was initially stated in the TCO no longer applies to the goods from a particular date. Specifically, TCO 1014956 was revoked, and TCO 1035949 was created on 06 August 2010, due to a change in tariff classification from 8428.90.00 to 8479.89.90.
The Act imposes specific obligations on the CEO to ensure that the tariff classifications applied to goods subject to TCOs remain accurate and up to date. The CEO must continuously monitor and review tariff classifications to ensure compliance with the Customs Act 1901. In this instance, the CEO was required to revoke TCO 1014956 and issue a new TCO (1035949) to reflect the updated tariff classification. The CEO must ensure that these changes are implemented on the date when the tariff classification ceased to apply to the goods, as specified in the Act.
Failure to comply with the provisions of the Customs Act 1901, including the requirements for revoking and updating TCOs, may result in legal consequences. While the explanatory statement does not explicitly state offences or penalties, breaches of the Act could potentially lead to civil or criminal penalties under the broader legislative framework. Typically, such breaches could result in fines, imprisonment, or other sanctions as prescribed by the Act. The exact penalties would depend on the specific nature and severity of the breach, and would be determined by the relevant courts and tribunals.
In summary, the Tariff Concessions Revocation Instrument 34/2012 outlines the process for revoking and updating TCOs when there are changes in tariff classifications. The CEO of Customs is obligated to ensure that these changes are accurately reflected in the TCOs, and non-compliance may lead to legal consequences, including potential fines or imprisonment. The changes made on 06 August 2010, from TCO 1014956 to TCO 1035949, are a direct result of the aforementioned legislative requirements to maintain accurate tariff classifications.