EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 41/2006
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.
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 41/2006 was made on 29 April 2006. It revokes TCO 0110661 and makes TCO 0607136. The tariff classification has been changed from 8418.69.00 to 8418.61.00 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. 41/2006 revoked 0110661 and made new TCO 0607136 on 29 April 2006.
Overview
The Tariff Concessions Revocation Instrument 41/2006, enacted under the Customs Act 1901, was introduced to address discrepancies in tariff classifications of specific goods as a result of changes in the Customs Tariff Act 1995 or decisions made by the Administrative Appeals Tribunal. This instrument allows the Chief Executive Officer of Customs to revoke existing Tariff Concession Orders (TCOs) and issue new ones when the tariff classification of the goods in question changes. The objective of this instrument is to ensure that the correct rate of customs duty is applied to goods, thereby maintaining the integrity of the tariff concession scheme. The Instrument was made without consultation as the changes were deemed minor and of a machinery nature. The revocation of TCO 0110661 and the establishment of TCO 0607136 took effect from the date on which the tariff classification change was implemented.
Scope and Application
The Tariff Concessions Revocation Instrument 41/2006, made under the Customs Act 1901, applies to the revocation of Tariff Concession Order (TCO) 0110661 and the subsequent issuance of TCO 0607136. This instrument is relevant to goods that are subject to the tariff concessions outlined in the Customs Act, specifically where a change in tariff classification necessitates the revocation of an existing TCO and the creation of a new one. The changes in the tariff classification are due to amendments in the Customs Tariff Act 1995 or decisions by relevant authorities. The revocation and creation of new TCOs are applicable across the Commonwealth of Australia, ensuring that the customs duty rates are accurately reflected according to the updated tariff classifications. There are no stated exclusions or exemptions in this particular instrument, and it applies to any goods affected by the changes in tariff classification. The instrument extends the application of the Customs Act by detailing specific changes to existing TCOs and does not require additional consultation due to its minor and machinery nature. The commencement of the revocation and new TCO aligns with the day the tariff classification change took effect, ensuring a seamless transition in tariff application.
Key Provisions
The Tariff Concessions Revocation Instrument 41/2006 under the Customs Act 1901 primarily serves to revoke an existing Tariff Concession Order (TCO) and establish a new one in its place. Specifically, section 269SD(2) of the Customs Act requires the Chief Executive Officer (CEO) of Customs to revoke TCO 0110661 and establish TCO 0607136 due to a change in tariff classification (sections 1 and 2). The revocation and creation of these orders occur on 29 April 2006, as stipulated in the Instrument.
The Act imposes specific obligations on the parties governed by it. For instance, section 269SD(2) mandates that the CEO of Customs must revoke a TCO if it is found that the tariff classification stated in the TCO no longer applies to the goods due to a change in the Customs Tariff Act 1995, a court decision, or written advice from an officer of Customs. Additionally, section 269SD(4) specifies that the revocation and new TCO take effect from the day the old TCO ceased to apply, or a later date if specified. Section 269SD(6) further clarifies that this process is effective despite any prohibitions under section 12 of the Legislative Instruments Act 2003, which typically restricts the creation of retrospective legislative instruments.
Failure to comply with the provisions of the Customs Act and the Tariff Concessions Revocation Instrument 41/2006 may result in legal consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of customs regulations generally carry substantial penalties. Under Australian law, customs-related offences can lead to criminal charges, fines, and imprisonment, with the severity of the penalty dependent on the nature and extent of the breach. For example, knowingly making a false statement or document can result in a fine of up to $22,200 or imprisonment for up to two years, or both, as per section 245 of the Customs Act 1901. Similarly, contravening a TCO or failing to comply with customs regulations can attract fines and other civil or administrative penalties as prescribed by the Act.