EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 42/2006
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 42/2006 was made on 29 April 2006. It revokes TCO 0110659 and makes TCO 0607138. 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. 42/2006 revoked 0110659 and made new TCO 0607138 on 29 April 2006.
Overview
The Tariff Concessions Revocation Instrument 42/2006, enacted on 29 April 2006, addresses a specific issue within the Customs Act 1901 concerning the revocation and replacement of Tariff Concession Orders (TCOs). This instrument was developed in response to the need for adjustments in tariff classifications due to changes in the Customs Tariff Act 1995 or decisions from the Administrative Appeals Tribunal. The primary objective of the instrument is to ensure that the applicable tariff classifications for goods under TCOs are accurately reflected, thereby maintaining the integrity of the customs duty regime. The instrument was created by the Chief Executive Officer of Customs, operating under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. The policy objective is to streamline the process for updating tariff concessions to align with current tariff classifications, ensuring that the duty rates applied to imported goods remain consistent with legislative changes and judicial decisions.
Scope and Application
The Tariff Concessions Revocation Instrument 42/2006 operates under the Customs Act 1901 to address the revocation of Tariff Concession Orders (TCOs) that pertain to the classification and duty rates of imported goods. This legislation applies to entities and individuals that are subject to the tariff concessions outlined in the revoked and newly established TCOs. The geographic scope of the Act is national, as it is administered by the Chief Executive Officer of Customs on behalf of the Commonwealth of Australia. The revocation of TCO 0110659 and the establishment of TCO 0607138 are directly linked to changes in tariff classifications due to amendments in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The new TCO takes effect from the date of revocation, which is determined based on when the tariff classification ceased to apply to the goods. Notably, this instrument is exempt from the retrospective application restrictions outlined in the Legislative Instruments Act 2003, allowing for the effective date to be backdated to the commencement of the original TCO or a later date as specified.
Key Provisions
The Tariff Concessions Revocation Instrument 42/2006 (Instrument) revokes Tariff Concession Order (TCO) 0110659 and introduces a new TCO 0607138 under section 269SD(2) of the Customs Act 1901. This change is necessitated by a modification in the tariff classification of the goods covered by the original TCO, as per the Customs Tariff Act 1995. The tariff classification of the goods has been altered from 8418.69.00 to 8418.61.00, which prompted the necessity for a new TCO.
The Customs Act 1901 imposes certain obligations on the Chief Executive Officer of Customs (CEO) when dealing with tariff concessions. According to section 269C and section 269P, a TCO is issued when an application is made and it meets the core criteria. However, under section 269SD(2), the CEO must revoke a TCO and issue a new one if certain conditions are met, such as changes in tariff classification due to an amendment in the Customs Tariff Act 1995 or a decision of a court of the Administrative Appeals Tribunal. Additionally, section 269SD(6) stipulates that these provisions apply despite any retrospective legislative prohibitions under the Legislative Instruments Act 2003.
The Instrument revokes TCO 0110659 and establishes TCO 0607138, effective from 29 April 2006. Subsection 269SD(2) mandates that the revocation and the creation of a new TCO take effect from the day the tariff classification no longer applies to the goods. Furthermore, subsection 269SD(4) allows for the revocation to be effective from the day the original TCO came into force or a later date as specified. The Instrument ensures that these changes are made despite any prohibitions under section 12 of the Legislative Instruments Act 2003, which generally prohibits the making of retrospective legislative instruments.
In terms of penalties and consequences for breaches, the Customs Act 1901 and the Instrument do not explicitly outline specific offences or penalties for non-compliance with the revocation and new TCO provisions. However, any failure to adhere to the tariff classification requirements could potentially lead to disputes over customs duties and legal challenges. Given the technical nature of the changes, it is crucial for entities involved to ensure compliance to avoid any potential disputes or financial implications related to customs duties.