EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 35/2008
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 35/2008 was made on 14 March 2008. It revokes TCO 9305567 and makes TCO 0804078. The tariff classification has been changed from 8716.90.00 to 4012.90.00 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. 35/2008 revoked 9305567 and made new TCO 0804078 on 14 March 2008, with the Revocation date of effect as from 6 May 1993
Overview
The Tariff Concessions Revocation Instrument 35/2008, enacted on 14 March 2008, addresses the need to adjust tariff concession orders under the Customs Act 1901 due to changes in tariff classifications or other relevant factors. This instrument was introduced by the Chief Executive Officer of Customs, as authorised by the Act, to ensure that the application of customs duty aligns with current tariff classifications. The revocation of Tariff Concession Order (TCO) 9305567 and the creation of new TCO 0804078 were necessitated by a shift in tariff classification from 8716.90.00 to 4012.90.00, reflecting a change mandated by the Customs Tariff Act 1995. The instrument's objective is to maintain the integrity of the tariff system and ensure that the correct rates of duty are applied to imported goods. The revocation and new order came into effect from the date the old TCO was first enacted, aligning with the statutory provisions under the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 35/2008, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 9305567 and introduces a new TCO 0804078. This legislative instrument applies to the tariff concessions granted under the Customs Act 1901, specifically affecting the tariff classification of goods that were previously subject to TCO 9305567. The revocation and the creation of TCO 0804078 were necessitated by a change in the tariff classification, which altered from 8716.90.00 to 4012.90.00. The application of this instrument is governed by the provisions of Part XVA of the Customs Act 1901, which delineates the conditions under which TCOs are issued and subsequently revoked by the Chief Executive Officer of Customs. The instrument is applicable nationally and extends to all entities involved in the importation of goods affected by the specified tariff classifications. The commencement date for the revocation and the creation of the new TCO is set from the day the previous tariff classification ceased to apply to the goods, with a specific retroactive effect date of 6 May 1993. The instrument operates to ensure that the tariff concessions align with the current tariff classifications as stipulated in the Customs Tariff Act 1995.
Key Provisions
The Tariff Concessions Revocation Instrument 35/2008 (Instrument) operates under sections 269C and 269P of the Customs Act 1901. It revokes Tariff Concession Order (TCO) 9305567 and replaces it with TCO 0804078. This change arises from a shift in the tariff classification of the goods involved, which has been updated due to a change in the Customs Tariff Act 1995. Section 269SD(2) mandates that if the Chief Executive Officer (CEO) of Customs determines that the tariff classification stated in a TCO no longer applies to the goods, they must revoke the existing TCO and issue a new one. This ensures that the correct tariff classification is applied to the goods.
Under this Instrument, the CEO is obligated to ensure that the tariff classification for the goods is accurate and up-to-date. The CEO must review the relevant classifications and, if necessary, take action to revoke and replace the TCO. This process is crucial to maintain compliance with the Customs Act 1901 and ensure that the appropriate customs duties are applied. The CEO's role is to act in accordance with the statutory criteria outlined in the Act, particularly when a tariff classification change occurs.
Failure to comply with the requirements of the Customs Act 1901, including the timely revocation and replacement of TCOs, may result in legal consequences. While the explanatory statement does not detail specific offences or penalties for non-compliance, the Act itself provides for various penalties for breaches, including fines and imprisonment. The exact penalties would depend on the nature and severity of the breach, but they serve as a deterrent to ensure adherence to the legislative requirements.
The commencement provisions of the Instrument state that the revocation of TCO 9305567 and the issuance of TCO 0804078 took effect from 14 March 2008, with the revocation date set from 6 May 1993. Section 269SD(6) of the Act ensures that this Instrument takes precedence over certain retrospective legislative restrictions, allowing for the necessary changes to be made without delay. This ensures that the correct tariff classifications are applied from the effective date, maintaining the integrity of the customs duty system.