EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 37/2007
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 37/2007 was made on 20 February 2007. It revokes TCO 0614309 and makes TCO 0702191. The tariff classification has been changed from 8479.90.00 to 8479.89.90.
Consultation
No consultation was undertaken since the change is of a 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. 37/2007 revoked TCO 0614309 and made new TCO 0702191 on 20 February 2007.
Overview
The Tariff Concessions Revocation Instrument 37/2007, made under the Customs Act 1901, addresses the need to adjust tariff classifications of goods that have been subject to Tariff Concession Orders (TCOs). Enacted by the Chief Executive Officer of Customs, this instrument serves to correct or update tariff classifications that have become obsolete due to changes in the Customs Tariff Act 1995, court decisions, or written advice from Customs officers. This legislative action ensures that the customs duty rates applied to specific goods remain accurate and aligned with current legal and tariff standards. The instrument was implemented on 20 February 2007, revoking TCO 0614309 and establishing TCO 0702191, reflecting a shift in tariff classification from 8479.90.00 to 8479.89.90. The revocation and establishment of new TCOs are effective from the specified dates, as outlined in the Act, ensuring that the changes are applied prospectively from the point the old TCOs ceased to be applicable.
Scope and Application
The Tariff Concessions Revocation Instrument 37/2007 applies to the revocation and reissuance of a Tariff Concession Order (TCO) under the Customs Act 1901. Specifically, it addresses TCO 0614309, revoking it and issuing a new TCO 0702191, in light of a change in tariff classification from 8479.90.00 to 8479.89.90. This change was necessitated by an amendment to the Customs Tariff Act 1995, as per section 269SD(2) of the Customs Act. The instrument impacts goods subject to these tariff classifications, ensuring they continue to receive the appropriate duty rates following the reclassification. The revocation and issuance of the new TCO apply from the date the previous tariff classification ceased to apply to the goods, with the CEO of Customs responsible for implementing this change. The instrument operates within the Commonwealth jurisdiction and affects entities and individuals involved in the importation of goods subject to these tariff classifications. There are no exclusions or exemptions noted in the instrument, and it does not specify any thresholds. The application of this instrument extends through subordinate legislation under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 37/2007, made under sections 269C and 269P of the Customs Act 1901 (the Act), revokes Tariff Concession Order (TCO) 0614309 and establishes TCO 0702191. This instrument was issued to reflect changes in the tariff classification of specific goods, transitioning from classification 8479.90.00 to 8479.89.90. This change was necessitated by an amendment to the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from an officer of Customs.
The obligations imposed by this Instrument on the parties involved are primarily centred around the accurate classification and application of the new tariff rates to the specified goods. The Chief Executive Officer of Customs must ensure that the new TCO aligns with the current tariff classifications and that the lower rate of customs duty applies to the goods as stipulated. Importers and exporters must also comply by using the correct tariff classification when declaring goods for customs purposes, thereby ensuring that the appropriate duty rates are charged and paid.
Failure to comply with the requirements set out in the Tariff Concessions Revocation Instrument 37/2007 can lead to various consequences. Under the Customs Act 1901, any person who does not comply with the provisions of a TCO can be subject to penalties. The penalties for non-compliance can include both civil and criminal sanctions. For instance, civil penalties might include financial penalties or the forfeiture of goods. Criminal penalties can include fines and imprisonment, depending on the severity of the breach and the discretion of the court. The maximum penalties for such breaches are specified in the relevant sections of the Customs Act 1901, which may vary based on the specific circumstances of the offence.