EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 43/2006
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 43/2006 was made on 29 April 2006. It revokes TCO 0110660 and makes TCO 0607139. 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. 43/2006 revoked 0110660 and made new TCO 0607139 on 29 April 2006.
Overview
The Tariff Concessions Revocation Instrument 43/2006 was enacted under the Customs Act 1901 to address the issue of tariff classification changes that affect goods subject to Tariff Concession Orders (TCOs). The instrument was introduced to ensure that the tariff classifications for certain goods are updated and reflected accurately in the TCOs, thereby maintaining the integrity of the tariff concessions scheme. This instrument was made by the Chief Executive Officer of Customs (CEO) in accordance with the provisions of the Customs Act 1901, which allows the CEO to make and revoke TCOs. The objective of this legislative instrument was to correct a minor change in tariff classification that did not require extensive consultation as it did not substantially alter existing arrangements. The instrument came into effect on the day it was made, 29 April 2006, with the revocation of TCO 0110660 and the establishment of new TCO 0607139.
Scope and Application
The Tariff Concessions Revocation Instrument No. 43/2006, made under the Customs Act 1901, is a legislative instrument that revokes Tariff Concession Order (TCO) 0110660 and establishes a new TCO 0607139. This instrument applies to entities and individuals involved in the importation of goods that were previously subject to TCO 0110660 and now fall under the revised TCO 0607139. The changes pertain specifically to the tariff classification of certain goods, reflecting amendments in the Customs Tariff Act 1995. The scope of the instrument is limited to the revision of tariff classifications and does not extend to other areas of customs duty or import regulations. The changes are effective from the day the old TCO ceased to apply, which is determined by the date of the tariff classification change. This revocation and the creation of the new TCO are authorised by the Customs Act 1901, and the instrument's operation is subject to the conditions and exceptions outlined within the Act, ensuring it adheres to the legislative framework and does not contravene provisions such as those found in the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 43/2006 (sections 269C and 269P) outlines the process for revoking and replacing a Tariff Concession Order (TCO). Specifically, it revoked TCO 0110660 and introduced TCO 0607139 due to a change in tariff classification. Section 269SD(2) of the Customs Act 1901 mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if, due to an amendment in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer, the tariff classification in the TCO no longer applies to the goods. The new TCO, 0607139, came into effect on the same day as the revocation of 0110660. The change in tariff classification was from 8418.69.00 to 8418.61.00, reflecting the updated customs duty rates.
The obligations imposed by the Act require the CEO to carefully monitor tariff classifications and ensure that any changes in classification, whether due to legislative amendments, court decisions, or Customs advice, are promptly reflected in the applicable TCOs. This involves making the necessary revocation and new TCO to maintain accurate tariff concessions. Section 269SD(4) of the Act provides flexibility in the timing of these changes, allowing the new TCO to take effect from the day the old TCO came into force or a later day, as specified by the CEO. Section 269SD(6) further clarifies that this process operates despite any prohibitions on retrospective legislative instruments as outlined in section 12 of the Legislative Instruments Act 2003.
Failure to comply with the provisions of the Customs Act 1901 regarding tariff concessions can result in civil and criminal consequences. While the explanatory statement does not detail specific penalties, breaches of customs regulations generally can lead to significant fines and potential imprisonment under the relevant sections of the Act. For instance, section 137 of the Customs Act 1901 provides for fines and imprisonment for knowingly making false statements or using false documents in connection with customs matters. The maximum penalties for such offences can be substantial, depending on the severity and intent of the breach. Ensuring adherence to the Act's requirements is thus crucial for all parties involved in customs operations.