EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 35/2005
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
Orrcon Operations Pty Ltd requested that the CEO revoke TCO 0509579 which covers Welded Pipe.
Instrument
Tariff Concessions Revocation Instrument No 35/2005 was made on 22 December 2005. It revokes TCO 0509579 as the CEO is satisfied that Orrcon Operations Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) has effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Revocation Instrument No.35/2005 revoked 0509579 on 22 December 2005.
Overview
The Tariff Concessions Revocation Instrument 35/2005, enacted in 2005, addresses a specific gap within the Customs Act 1901 concerning the revocation of Tariff Concession Orders (TCOs) when local production of substitutable goods emerges. This instrument was developed in response to a request by Orrcon Operations Pty Ltd for the revocation of TCO 0509579, which pertains to Welded Pipe. The Customs Act 1901, administered by the Parliament of Australia, provides a framework for the imposition of customs duty and allows for tariff concessions under certain conditions. The policy objective of the Tariff Concessions Revocation Instrument 35/2005 is to ensure that tariff concessions are dynamically adjusted to reflect changes in the domestic production landscape, thereby maintaining a fair and competitive trading environment. This legislative instrument was enacted to allow the Chief Executive Officer of Customs to revoke a TCO when it is determined that the conditions for the concession no longer apply due to the emergence of local production of substitutable goods.
Scope and Application
The Tariff Concessions Revocation Instrument 35/2005 under the Customs Act 1901 applies to the revocation of Tariff Concession Orders (TCO) made by the Chief Executive Officer of Customs. Specifically, it addresses the revocation of TCO 0509579 concerning Welded Pipe, following a request by Orrcon Operations Pty Ltd. The revocation applies to goods subject to the TCO, and the decision to revoke is based on the CEO's satisfaction that Orrcon Operations Pty Ltd is a producer of substitutable goods in Australia and that the TCO would not have been granted had the request for revocation been made on the date of the original TCO application. The revocation is effective from the date the request to revoke was lodged, thereby providing a clear and direct impact on the tariff concessions applicable to the specified goods. This instrument operates within the Commonwealth jurisdiction, extending its reach across Australia, and adheres to the requirements set out in sections 269C, 269P, 269SB, 269SC, and 269SD of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 35/2005, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0509579, which previously applied to Welded Pipe. This revocation follows a request by Orrcon Operations Pty Ltd, a producer of substitutable goods, as stipulated in sections 269SB, 269SC(1), and 269SC(3) of the Act. These sections detail the process and criteria for revoking a TCO when a local producer of substitutable goods asserts that they could produce the goods in question if the TCO were not in place.
Under this legislation, the Chief Executive Officer of Customs (CEO) is mandated to revoke the TCO if they are satisfied that the applicant, Orrcon Operations Pty Ltd in this case, is indeed a producer of substitutable goods and that they would have produced these goods domestically if the TCO had not been in effect. The CEO must also ensure that a notice of the request and the full details of the TCO are published in a Gazette as soon as practicable after receiving the revocation request, as required by subsection 269SC(1A) of the Act.
The obligations imposed by the Customs Act 1901 include the CEO's duty to assess the validity of the revocation request based on the specified criteria and to promptly publish relevant details of the TCO in question. Failure to comply with these obligations could result in legal repercussions, although the specific penalties are not detailed in the explanatory statement.
The revocation of a TCO under this instrument, and the associated obligations, can have significant legal and financial implications for parties involved. While the explanatory statement does not outline specific penalties for non-compliance, breaches of the Customs Act 1901 may result in civil or criminal penalties, depending on the nature and severity of the breach. These penalties could include fines and other sanctions as prescribed by the relevant laws.