EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 43/2007
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 43/2007 was made on
27 February 2007. This instrument revokes 0618830 of classification 8464.20.90 and makes new TCO 0702028 of classification 8464.20.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 43/2007 revokes TCO 0618830 and makes new TCO 0702028 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 43/2007 was enacted to address changes in tariff classifications as mandated by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This instrument, which came into effect on 27 February 2007, revokes the Tariff Concession Order (TCO) 0618830 and replaces it with the new TCO 0702028, reflecting changes to the Customs Tariff Act 1995. The Customs Act 1901 provides a framework under which the Chief Executive Officer of Customs can make and revoke TCOs, allowing for lower rates of customs duty on specific goods. The policy objective of this revocation and new TCO issuance is to ensure that the tariff classifications accurately reflect the current legislative changes, thereby maintaining the integrity and effectiveness of the tariff concession scheme. The instrument was introduced without consultation, as the changes were deemed minor and of a machinery nature, not substantially altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 43/2007 applies to goods that are the subject of Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, it targets goods classified under 8464.20.90 that were previously subject to TCO 0618830, revoking this order and replacing it with TCO 0702028 for goods classified under 8464.20.00, effective from 1 January 2007. The instrument is applicable across Australia, aligning with the national scope of the Customs Act 1901, and is enforced by the Chief Executive Officer of Customs. It does not specify exclusions or exemptions, but its application is triggered by changes in the Customs Tariff Act 1995, as detailed in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The instrument reflects the legislative adjustments necessitated by these changes, ensuring that the applicable tariff concessions are consistent with the updated tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 43/2007, made under the Customs Act 1901, revokes a previous Tariff Concession Order (TCO) and establishes a new TCO. This change is a direct result of updates to the Customs Tariff Act 1995, which took effect from 1 January 2007. Specifically, section 269SD(2A) of the Customs Act 1901 mandates the revocation of TCO 0618830 and the establishment of TCO 0702028 to reflect the new tariff classifications.
The new TCO 0702028 applies to goods classified under 8464.20.00, while TCO 0618830, which is revoked, previously applied to goods under classification 8464.20.90. The new order is designed to ensure that the appropriate tariff concessions continue to apply to the specified goods, aligning with the latest tariff classifications. The changes are effective from 1 January 2007, the date when the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 came into force.
Under the Customs Act 1901, the Chief Executive Officer of Customs (CEO) has the authority to make and revoke TCOs. The CEO must ensure that the core criteria for making a TCO are met, specifically that no substitutable goods are produced in Australia at the time the application is lodged. In this instance, the CEO's decision to revoke TCO 0618830 and establish TCO 0702028 was made in response to the changes in tariff classifications mandated by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2007. These changes necessitated adjustments to the applicable tariff concessions to reflect the updated tariff classifications.
The Customs Act 1901 imposes obligations on the CEO to ensure that the correct tariff concessions are applied to eligible goods. The CEO must carefully review and assess applications for TCOs, ensuring that the goods in question meet the criteria for tariff concessions. In this case, the CEO's actions in revoking TCO 0618830 and establishing TCO 0702028 are in line with these obligations, ensuring that the appropriate tariff concessions continue to apply to the specified goods.
Failure to comply with the requirements of the Customs Act 1901 or the terms of a TCO could result in civil or criminal penalties. While the explanatory statement does not detail specific penalties, breaches of the Customs Act 1901 can result in fines and, in severe cases, imprisonment. The maximum penalties for offences under the Customs Act 1901 can be substantial, reflecting the seriousness with which the Act is enforced. Parties involved in the import and export of goods must ensure they adhere to the provisions of the Act and the terms of any applicable TCOs to avoid these potential consequences.