Overview

The Tariff Concessions Revocation Instrument 42/2011 was enacted to address the specific issue of revoking a Tariff Concession Order (TCO) in accordance with the Customs Act 1901. This Instrument was introduced to facilitate the revocation of TCO 0826878, which covers gas turbine generator inlet support structures, following a request by Origin Energy Power Ltd. The Customs Act 1901 provides a framework under which the Chief Executive Officer of Customs (CEO) can make and revoke TCOs, which apply lower rates of customs duty to certain goods if no substitutable goods are produced in Australia. The Instrument was made under the authority of the CEO, who is required to revoke a TCO if satisfied that the requesting party is a producer of substitutable goods and that the concession would not have been granted if the request had been made at the time of the original application. The revocation was effective from the date the request was lodged, 28 May 2009.

Scope and Application

The Tariff Concessions Revocation Instrument 42/2011 applies to the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901. This instrument is relevant to any producer in Australia of goods that are substitutable to those covered by a TCO, as well as to the Chief Executive Officer of Customs who has the authority to make or revoke a TCO. The instrument specifically addresses TCO 0826878, which relates to gas turbine generator inlet support structures. Geographically, the application of this instrument is nationwide, encompassing the entire Commonwealth of Australia. The instrument revokes the specified TCO based on the CEO's determination that the requesting producer, Origin Energy Power Ltd, produces substitutable goods and that the TCO would not have been issued if the request had been made on the day the original TCO application was lodged. The revocation takes effect from the date the revocation request was lodged, which was 28 May 2009, in accordance with the provisions of the Customs Act 1901.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument 42/2011 are sections 269SB, 269SC, and 269SD of the Customs Act 1901. Section 269SB allows a person claiming to be a producer in Australia of substitutable goods to request the Chief Executive Officer of Customs (CEO) to revoke a Tariff Concession Order (TCO). Section 269SC outlines the conditions under which the CEO must make an order revoking a TCO, specifically if the CEO is satisfied that the requester is a producer of substitutable goods in Australia and that the CEO would not have made the TCO if the request had been made on the day the original application was lodged. Section 269SD governs the timing of the revocation, stipulating that the order comes into force on the day the request to revoke the TCO was lodged. The Act imposes obligations on several parties, most notably the CEO and any Australian producer of substitutable goods. The CEO must, upon receiving a request for revocation, publish a notice in the Gazette detailing the request and the specifics of the TCO. Additionally, the CEO is required to make an order revoking the TCO if the conditions in section 269SC are satisfied. For the Australian producer, the obligation is to submit a well-founded request to the CEO, demonstrating their status as a producer of substitutable goods and providing evidence that supports the claim that the TCO should not have been made. Breaching the obligations set forth in the Customs Act 1901 may lead to various civil or criminal consequences. Although the explanatory statement does not specify penalties, it is likely that non-compliance with the Act could result in legal actions. The CEO's failure to publish a notice or to revoke a TCO when conditions are met might be subject to judicial review or other legal remedies. Conversely, a producer’s false claim could lead to penalties under the general provisions of the Customs Act, including fines and potential criminal charges for fraud. The maximum penalties would depend on the specific nature and severity of the breach, as outlined in other sections of the Act.