EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 35/2007
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 35/2007 was made on 15 February 2007. It revokes TCO 0618566 and makes TCO 0702189. The tariff classification has been changed from 8427.20.00 to 8426.41.00 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. 35/2007 revoked 0618566 and made new TCO 0702189 on 15 February 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, outlines the framework for the administration of customs and excise duties in Australia. The Act was amended to include a scheme for Tariff Concession Orders (TCOs) to provide relief from customs duties on imported goods under specific conditions. The Tariff Concessions Revocation Instrument 35/2007, made on 15 February 2007, addresses a particular gap in the existing tariff concessions by revoking TCO 0618566 and issuing a new TCO 0702189 due to a change in tariff classification. The objective of this instrument is to ensure that the tariff classification accurately reflects the current tariff structure, thereby maintaining the integrity and fairness of the tariff system. The revocation and creation of these TCOs were executed to align with the provisions of the Customs Act 1901 and the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 35/2007, made under the Customs Act 1901, pertains to the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO for specific goods affected by changes in tariff classification. This legislation applies to goods that were subject to TCO 0618566, which has been revoked, and now fall under the new TCO 0702189, effective from the date of revocation. The change in tariff classification, from 8427.20.00 to 8426.41.00, was necessitated by an amendment to the Customs Tariff Act 1995. The scope of the Act encompasses the goods identified in the TCOs and their importers, exporters, and any other relevant parties involved in the customs process. Jurisdictionally, the Act operates under the Commonwealth, ensuring consistency across Australia. The instrument does not specify any exclusions, exemptions, or thresholds, implying a broad application to the affected goods. The Act’s application may be further defined or refined through subordinate instruments, although no such extensions or restrictions are noted in the provided explanatory statement.
Key Provisions
The Tariff Concessions Revocation Instrument 35/2007 primarily concerns the revocation of Tariff Concession Order (TCO) 0618566 and the creation of a new TCO, numbered 0702189, under the Customs Act 1901. According to section 269SD(2) of the Act, the Chief Executive Officer of Customs (CEO) must make this order when certain conditions are met, such as a change in tariff classification due to amendments in the Customs Tariff Act 1995, or following a court decision by the Administrative Appeals Tribunal or written advice from a Customs officer. This Instrument was enacted on 15 February 2007 and effectively changes the tariff classification of the goods from 8427.20.00 to 8426.41.00.
The obligations imposed by this Instrument on the parties involved include ensuring that the new TCO, 0702189, is applied correctly to the goods in question, aligning with the revised tariff classification. This change is imperative for compliance with the current tariff laws and to avoid any potential customs duty misapplications. The CEO of Customs, as the governing authority, has the duty to monitor and enforce these changes, ensuring that all stakeholders are aware of and adhere to the new tariff classifications.
Failure to comply with the requirements of this Instrument could result in significant legal consequences. Specifically, section 269SD(6) of the Customs Act 1901 ensures that the provisions of this Instrument take precedence despite any conflicting provisions in the Legislative Instruments Act 2003. This means that any breach of the new tariff classifications outlined in the Instrument could lead to civil or criminal penalties. Although the exact penalties are not specified in the Instrument, they would typically involve fines or other legal repercussions as stipulated by the Customs Act 1901 for non-compliance with tariff regulations.