EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 36/2007
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 36/2007 was made on 15 February 2007. It revokes TCO 0618565 and makes TCO 0702190. The tariff classification has been changed from 8427.20.00 to 8426.49.00 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. 36/2007 revoked 0618565 and made new TCO 0702190 on 15 February 2007.
Overview
The Tariff Concessions Revocation Instrument 36/2007, enacted under the Customs Act 1901, addresses the need to adjust and revoke existing Tariff Concession Orders (TCO) in response to changes in tariff classifications or other relevant decisions. This legislative instrument was introduced to ensure that the concessions granted under the TCO scheme remain aligned with current tariff regulations and decisions made by relevant authorities, such as courts or tribunals. The instrument was made by the Chief Executive Officer of Customs on 15 February 2007, following the identification of a discrepancy in the tariff classification of certain goods. The policy objective is to maintain the integrity and effectiveness of the tariff concession scheme by ensuring that the correct tariff classifications are applied to goods subject to TCOs. The instrument revokes TCO 0618565 and establishes a new TCO 0702190, reflecting the updated tariff classification.
Scope and Application
The Tariff Concessions Revocation Instrument 36/2007, which was made under the Customs Act 1901, pertains specifically to the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO in its place. This instrument applies to goods subject to the revoked TCO, specifically those affected by the change in tariff classification from 8427.20.00 to 8426.49.00. The revocation and subsequent creation of a new TCO are necessitated by amendments to the Customs Tariff Act 1995, which altered the classification of the goods in question. The application of this Instrument is nationwide, given the federal nature of customs regulation in Australia. The Instrument was made effective from the day the previous tariff classification ceased to apply to the goods, with no consultation needed due to the minor nature of the change. The revocation and new TCO apply without retrospective effect, as specified under subsection 269SD(6) of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 36/2007, under the Customs Act 1901, primarily involves the revocation of Tariff Concession Order (TCO) 0618565 and the establishment of a new TCO 0702190, effective from 15 February 2007 (section 269SD(2)). This revocation and creation of a new TCO are necessitated by a change in tariff classification from 8427.20.00 to 8426.49.00, as a result of an amendment to the Customs Tariff Act 1995 (section 269SD(2)). The operative sections of the Instrument focus on ensuring that the new TCO aligns with the updated tariff classification, thereby maintaining the integrity and effectiveness of the tariff concession scheme.
The Act imposes specific obligations on the Chief Executive Officer of Customs (CEO) when it comes to the administration and management of TCOs. According to sections 269C and 269P, a TCO is validly made if the application satisfies the core criteria, specifically, that on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Additionally, under section 269SD(2), the CEO is mandated to revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. This ensures that the concessions provided remain relevant and accurate.
In terms of consequences for non-compliance, the Act does not explicitly outline specific offences or penalties for the revocation or misapplication of TCOs within the provided text. However, it is reasonable to infer that any breaches of the requirements or obligations set out in the Act could potentially lead to legal actions, as the revocation and creation of TCOs are critical to maintaining the integrity of the customs duty system. The absence of specified penalties in the text suggests that any resultant legal actions would be governed by the broader provisions of the Customs Act 1901 and related legislative instruments.