Overview

The Tariff Concessions Revocation Instrument 36/2011, enacted in 2011, addresses the need to revoke certain tariff concessions under the Customs Act 1901 when there is a change in the production status of substitutable goods in Australia. This instrument is a legislative response to ensure that tariff concessions are only granted when they are warranted, and that local industries are protected from undue competition from imported goods. The revocation was initiated by a request from Onesteel Manufacturing Pty Limited, who claimed to be a producer of substitutable goods in relation to the electric resistance welded pipes covered by Tariff Concession Order (TCO) 0819863. The revocation was authorised by the Chief Executive Officer of Customs, acting under sections 269SB, 269SC, and 269SD of the Act, following a determination that the conditions for the concession were no longer met. The objective of the policy is to maintain fair competition within the domestic market by ensuring that tariff concessions are only applied when there is no local production of substitutable goods.

Scope and Application

The Tariff Concessions Revocation Instrument 36/2011, under the Customs Act 1901, pertains to the revocation of Tariff Concession Orders (TCOs) that grant lower rates of customs duty on specified goods. This Instrument specifically addresses the revocation of TCO 0819863, which covers electric resistance welded pipes. The Act applies to the Chief Executive Officer of Customs (CEO) and any entity or individual seeking to revoke a TCO, such as Onesteel Manufacturing Pty Limited in this case. The CEO is obligated to revoke a TCO if satisfied that the requesting party is a producer of substitutable goods in Australia and that the TCO would not have been issued if the request had been made on the date the TCO application was originally lodged. The revocation takes effect from the date the revocation request was made, notwithstanding provisions in the Legislative Instruments Act 2003 that typically prohibit retrospective legislative changes. This Instrument is a specific application of the broader provisions in Part XVA of the Customs Act 1901 and extends the Act's reach by detailing the process and criteria for revoking a TCO.

Key Provisions

The Tariff Concessions Revocation Instrument 36/2011 primarily deals with the revocation of Tariff Concession Order (TCO) 0819863 under the Customs Act 1901. This instrument is based on the application made by Onesteel Manufacturing Pty Limited, requesting the revocation of the TCO which covers electric resistance welded pipes. Under sections 269C and 269P of the Act, a TCO can be made if certain criteria are met, one of which is that no substitutable goods are produced in Australia on the day the application is lodged. Conversely, section 269SB allows a person claiming to be a producer of substitutable goods to request the Chief Executive Officer of Customs (CEO) to revoke the TCO. Sections 269SC(1) and 269SC(3) of the Customs Act 1901 outline the obligations for the CEO when considering a revocation request. The CEO must ensure that the applicant is indeed a producer of substitutable goods and that, if the TCO were not in force, it would not have been made. This involves a thorough evaluation of the applicant's production capabilities and the market conditions on the day the request was made. Additionally, under subsection 269SC(1A), the CEO must publish a notice in a Gazette as soon as practicable after receiving the request, detailing the request and the specifics of the TCO in question. The revocation of TCO 0819863 is effective from the date the request was lodged, as stated in subsection 269SC(6). This date is 6 October 2009, and the revocation itself was made on 27 November 2009, ensuring that the process adheres to the statutory requirements despite the prohibitions under section 12 of the Legislative Instruments Act 2003. The CEO's satisfaction with the conditions outlined in sections 269SC(1) and 269SC(3) is critical in this process. Any failure to comply with these obligations can result in legal consequences, although the specific penalties are not detailed in the explanatory statement. There are no explicit references to offences, penalties, or civil/criminal consequences in the explanatory statement for this particular revocation. However, breaches of the Customs Act 1901 can generally lead to substantial penalties. For instance, contraventions of customs duties or breaches of the Act can result in fines or imprisonment, depending on the severity and intent behind the breach. Given the importance of tariff concessions in maintaining fair trade practices, any non-compliance could attract significant penalties under the broader customs legislation.