EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 39/2006
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsection 269SC(1) of the Act, the CEO must decide whether of not her or she is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO;
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
If the CEO is satisfied of those matters but is also satisfied that a narrower TCO could have been made on the day the request to revoke was lodged, the TCO must revoke the TCO and make, in its place, such a narrower TCO (subsection 269SC(4) refers).
Bruck Textiles Pty Ltd requested that the CEO revoke TCO 0511454 which covers bed linen.
Instrument
Tariff Concession Instrument No 39/2006 was made on 19 April 2006. It revokes TCO 0511454 and remakes a narrower TCO 0607143 covering bed linen as the CEO is satisfied that he or she would not have made the old TCO but could have made the narrower TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged.
Subsection 269SC(7) provides that if a narrower TCO is made in place of another TCO, that narrower TCO comes into force from the date of effect of the revocation of the other TCO.
Subsection 239SD(8) provides that subsections 269SC(6) and 269SC(7) have effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Instrument No.39/2006 revoked 0511454 and made the narrower TCO No. 0607143 on 19 April 2006.
Overview
The Customs Act 1901, amended by the Tariff Concessions Revocation Instrument 39/2006, addresses the issue of tariff concessions for specific goods, particularly bed linen in this instance. This Instrument, enacted by the Chief Executive Officer of Customs (CEO), aims to respond to requests for the revocation of tariff concession orders (TCO) when substitutable goods begin to be produced in Australia. The CEO is mandated by the Act to assess whether the revocation of a TCO is justified based on the emergence of local production, and if so, to either revoke the existing TCO or replace it with a narrower concession that better reflects the current market conditions.
The instrument was developed to ensure that tariff concessions remain aligned with the economic landscape, particularly in cases where local production capabilities evolve. This approach helps maintain a balance between supporting local industries and providing fair trade practices, as outlined in the policy objectives of the Customs Act. The process of revocation and potential replacement of a TCO is overseen by the CEO, who must consider whether the applicant qualifies as a producer of substitutable goods and whether the original tariff concession would still be applicable under current conditions. The revocation and subsequent narrower concession are designed to take effect immediately upon the request for revocation, ensuring that the Customs regime adapts swiftly to changes in the domestic production environment.
Scope and Application
The Tariff Concessions Revocation Instrument 39/2006 is a legislative instrument under the Customs Act 1901, which pertains to the revocation and replacement of a Tariff Concession Order (TCO) concerning bed linen. This instrument applies to entities that are subject to the provisions of the Customs Act 1901, particularly those involved in the import of bed linen and the production of substitutable goods in Australia. The revocation and replacement of the TCO were made pursuant to the authority vested in the Chief Executive Officer of Customs, who assessed the request for revocation based on specific criteria outlined in the Act. The geographic and jurisdictional reach of this instrument is national, as it concerns the administration of customs duties across Australia. Any exclusions or exemptions from the application of this instrument are not specified in the text but would typically be defined in the Act or in subordinate instruments that extend or restrict its application. The commencement of the revocation and replacement of the TCO is effective from the day the request for revocation was lodged, with the new TCO taking effect from the date of the revocation of the old TCO.
Key Provisions
The Tariff Concessions Revocation Instrument 39/2006 (F2006L01316) primarily revokes Tariff Concession Order (TCO) 0511454, which applied to bed linen, and replaces it with a narrower TCO 0607143. This action was taken under sections 269C, 269P, 269SB, and 269SC of the Customs Act 1901. The revocation and replacement were necessary because the Chief Executive Officer (CEO) of Customs was satisfied that on the day the request for revocation was lodged, Bruck Textiles Pty Ltd was a producer of substitutable goods in Australia, and if the TCO had not been in force on that day, the CEO would not have made the original TCO. However, the CEO determined that a narrower TCO could have been made at that time, leading to the creation of TCO 0607143.
The Customs Act 1901 imposes specific obligations on parties involved with TCOs. Section 269C and 269P require that a TCO can only be made if no substitutable goods are produced in Australia on the day the application is lodged. Section 269SB allows a producer of substitutable goods to request the CEO to revoke a TCO if they believe the concession is no longer justified. Under section 269SC(1), the CEO must assess whether the requester is a producer of substitutable goods and whether the TCO would not have been made on the day the revocation request was lodged. If satisfied, the CEO may revoke the existing TCO and make a narrower one if appropriate, as per section 269SC(4). Additionally, the CEO is mandated by subsection 269SC(1A) to publish a notice in a Gazette as soon as practicable after receiving a revocation request, including details of the TCO in question.
Breaching the provisions of the Customs Act 1901 can lead to various consequences. While the explanatory statement does not detail specific offences or penalties related to the revocation of TCOs, general breaches of the Customs Act can result in both civil and criminal penalties. Civil penalties may include fines, and in some cases, criminal penalties such as imprisonment may apply, depending on the severity and nature of the breach. The Act also includes provisions that allow for retrospective effect of certain legislative instruments, despite prohibitions in the Legislative Instruments Act 2003, as stipulated in subsection 239SD(8).