EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 41/2008
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(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 41/2008 was made on 23 April 2008. It revokes TCO 0719751 and makes TCO 0803871. The tariff classification has been changed from 8413.50.90 to 8479.89.90 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. 41/2008 revoked 0719751 and made new TCO 0803871 on 23 April 2008, with the Revocation date of effect as from 20 November 2007
Overview
The Tariff Concessions Revocation Instrument 41/2008, enacted on 23 April 2008, is an instrument under the Customs Act 1901. This legislation was introduced to address the need for tariff concession orders to be updated in response to changes in tariff classifications or legal decisions. The instrument revokes Tariff Concession Order 0719751 and introduces Tariff Concession Order 0803871, reflecting the altered tariff classification of certain goods. The Customs Act 1901 provides the legal framework for this adjustment, with the Chief Executive Officer of Customs having the authority to make and revoke these orders. The instrument was made by the relevant authority without consultation due to its minor nature, and it commenced on the date specified in the instrument, aligning with the day the tariff classification change took effect. The policy objective is to ensure that tariff concessions accurately reflect the current tariff classifications, thereby maintaining fairness and efficiency in the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument 41/2008, enacted under the Customs Act 1901, applies to goods that were previously subject to Tariff Concession Order (TCO) 0719751, which has been revoked and replaced with TCO 0803871. This instrument specifically addresses the revocation and replacement of tariff concessions due to changes in tariff classifications. The application of this Act is confined to entities and individuals dealing with goods that were subject to the previously revoked TCO, impacting their customs duty obligations. The instrument's jurisdictional reach is within the Commonwealth of Australia, governed by the Customs Act 1901. The Act does not specify exclusions or exemptions, but its application is contingent on the cessation of the previous tariff classification as of 20 November 2007. The instrument's commencement is effective from the day it was made, 23 April 2008, with the revocation taking effect from the day the previous tariff classification ceased, as per subsection 269SD(2) of the Act.
Key Provisions
The Tariff Concessions Revocation Instrument 41/2008, under the Customs Act 1901, addresses the revocation and replacement of a Tariff Concession Order (TCO) due to changes in tariff classification. Section 269SD(2) mandates the Chief Executive Officer of Customs (CEO) to revoke an existing TCO if it is established that the tariff classification no longer applies to the goods due to amendments in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. This revocation and subsequent creation of a new TCO, such as TCO 0803871 replacing TCO 0719751, ensures that the tariff classification remains current and accurate.
The obligations imposed by the Act on parties and entities governed by it require adherence to the updated tariff classifications as per the new TCO. Specifically, the CEO must ensure that the goods subject to the TCO are correctly classified and that any changes are promptly reflected in the applicable orders. This involves meticulous monitoring of tariff changes and timely communication of these changes to relevant stakeholders to maintain compliance and avoid any discrepancies in duty applications.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument can result in both civil and criminal consequences. Although the explanatory statement does not explicitly detail penalties, breaches of the Act can typically lead to fines and other civil liabilities under section 269D of the Customs Act 1901. Additionally, persistent or severe non-compliance may attract criminal penalties, including imprisonment, under section 269E of the same Act. These measures underscore the importance of adhering to the legislative requirements to avoid adverse legal repercussions.