EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 42/2008
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 42/2008 was made on 23 April 2008. It revokes TCO 0719430 and makes TCO 0803877. The tariff classification has been changed from 8302.41.00 to 8302.50.00 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. 42/2008 revoked 0719430 and made new TCO 0803877 on 23 April 2008, with the Revocation date of effect as from 14 November 2007
Overview
The Tariff Concessions Revocation Instrument 42/2008 was enacted to address a specific issue related to tariff classification under the Customs Act 1901. The instrument, which was made on 23 April 2008, revokes Tariff Concession Order (TCO) 0719430 and establishes a new TCO 0803877, reflecting a change in tariff classification from 8302.41.00 to 8302.50.00 due to an amendment in the Customs Tariff Act 1995. The instrument was created under the authority granted by the Customs Act 1901, specifically sections 269C, 269P, and 269SD, which allow the Chief Executive Officer of Customs to make and revoke TCOs based on certain criteria. The objective of this instrument is to ensure that the tariff concessions continue to apply correctly to goods, even when there are changes in tariff classification, thus maintaining the integrity of the tariff concession scheme. The instrument commenced on the date when the tariff classification ceased to apply to the goods, with the new TCO taking effect from the date of revocation.
Scope and Application
The Tariff Concessions Revocation Instrument 42/2008 operates under the Customs Act 1901, which governs the regulation of customs and excise in Australia. This instrument specifically addresses the revocation and replacement of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The primary focus is on goods subject to TCOs, which qualify for lower rates of customs duty, contingent upon the goods not being produced in Australia at the time of the application. The instrument applies to any entity or individual importing goods affected by the revoked and newly issued TCOs, impacting their customs duty obligations. The instrument’s jurisdiction is national, as it pertains to the overarching Customs Act 1901, which is a Commonwealth Act.
The instrument revokes TCO 0719430 and introduces TCO 0803877, effective from 14 November 2007, due to a change in tariff classification from 8302.41.00 to 8302.50.00. The revocation and re-issuance of the TCO are executed under section 269SD(2) of the Customs Act, ensuring compliance with tariff classifications. The commencement of the revocation and new TCO aligns with the date when the original tariff classification ceased to apply to the goods, as stipulated in subsection 269SD(2). Notably, this instrument does not require consultation due to its minor and administrative nature, and it takes effect despite provisions in the Legislative Instruments Act 2003 that generally prohibit retrospective legislative instruments.
Key Provisions
The primary sections of the Tariff Concessions Revocation Instrument 42/2008, under the Customs Act 1901, include sections 269C, 269P, and 269SD. Section 269C outlines the conditions under which a Tariff Concession Order (TCO) may be made, while section 269P details the revocation of such an order. Section 269SD specifically mandates the revocation of a TCO if the tariff classification stated in it no longer applies to the goods due to certain changes, such as amendments to the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from an officer of Customs. This section also mandates the creation of a new TCO to replace the revoked one.
The obligations imposed by this legislation on the parties involved, primarily the Chief Executive Officer of Customs (CEO), include the responsibility to make an order revoking an existing TCO if it is determined that the tariff classification no longer applies to the goods. This obligation extends to ensuring that a new TCO is issued to maintain the tariff concessions in line with the current classification. The CEO must act in accordance with the specified provisions of the Customs Act 1901, ensuring that the changes are implemented from the correct date, which may be the date the original TCO came into force or a later date as specified.
Breaches of the requirements set forth in this legislation may lead to civil or criminal consequences, although the specific details of such penalties are not explicitly stated in the explanatory statement. However, it is understood that any failure to comply with the Act's provisions could result in legal actions being taken against the offending party. For instance, if the CEO fails to revoke and replace a TCO when required, it could potentially lead to legal disputes regarding the correct tariff rates applicable to the goods in question. The penalties could range from fines to more severe legal repercussions depending on the extent and impact of the non-compliance.