EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 40/2008
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(3) of the Act provides that if the CEO is satisfied that, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 40/2008 was made on 22 April 2008. It revokes TCO 0721823 and makes TCO 0803875 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.40/2008 revoked 0721823 and made new TCO 0803875 on 22 April 2008, with the revocation date of effect as from 18 December 2007
Overview
The Tariff Concessions Revocation Instrument 40/2008, enacted on 22 April 2008, addresses a transcription error in the description of goods subject to Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was issued by the Chief Executive Officer of Customs to correct a mistake in the tariff classification of specific goods, ensuring the integrity and accuracy of the tariff concession scheme. The Customs Act 1901, administered by the Parliament of Australia, allows for the creation and revocation of TCOs to provide lower rates of customs duty on certain goods, provided no substitutable goods are produced in Australia. The policy objective of this instrument is to rectify an administrative error, thereby maintaining the fairness and effectiveness of the tariff concession process. The revocation and subsequent creation of a new TCO were implemented immediately from the date of the original TCO's commencement, ensuring continuity in tariff treatment despite the correction.
Scope and Application
The Tariff Concessions Revocation Instrument 40/2008 applies to goods subject to Tariff Concession Orders (TCOs) within the scope of the Customs Act 1901. Specifically, it targets the revocation of TCO 0721823 and the issuance of TCO 0803875 due to a transcription error that was identified in the description of the goods and their tariff classification. This instrument is applicable to those involved in importing or exporting the affected goods, as well as entities managing customs duties on these goods. The geographic reach of this Act is national, given that it is an instrument under the Commonwealth Customs Act 1901. The revocation and new order are effective from the date the original TCO came into force, which is 18 December 2007, thereby circumventing the prohibition of retrospective legislative instruments under the Legislative Instruments Act 2003. This instrument does not extend to other concessions or tariffs not affected by the identified transcription error.
Key Provisions
The Tariff Concessions Revocation Instrument 40/2008 revokes Tariff Concession Order (TCO) 0721823 and establishes a new TCO 0803875 due to a transcription error. This is pursuant to the Customs Act 1901, specifically under section 269SD(3) which allows for the revocation and correction of a TCO when a transcription error is identified (s 269SD(3)). The new TCO, 0803875, corrects the previously erroneous description of the goods and their tariff classification. This process ensures that the correct goods are subject to the appropriate tariff concessions, thereby maintaining the integrity of the tariff concession scheme.
The Act imposes certain obligations on the Chief Executive Officer of Customs (CEO) when dealing with TCOs. Under section 269C, the CEO must make a TCO if the application meets the core criteria, which include that no substitutable goods were produced in Australia on the day the application was lodged (s 269C). Additionally, under section 269SD(3), the CEO is required to revoke a TCO and issue a corrected TCO if a transcription error is identified in the description of the goods or their tariff classification. The CEO must ensure that the corrected TCO accurately reflects the intended goods and tariff classification to avoid any confusion or misapplication of tariff rates.
Breaches of the requirements under the Customs Act 1901 can lead to various consequences. Although the explanatory statement does not detail specific offences or penalties, it is reasonable to infer that failure to comply with the prescribed procedures for making or revoking TCOs could result in legal challenges or administrative penalties. The accuracy and correctness of TCOs are critical to avoid misapplication of tariff rates, which could lead to financial penalties or legal disputes for importers and exporters. The penalties for such breaches, while not explicitly stated in the explanatory statement, may include fines, corrections, or additional administrative actions as prescribed under other relevant sections of the Customs Act 1901.