EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 43/2008
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 43/2008 was made on 23 April 2008. It revokes TCO 0718440 and makes TCO 0803880. 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. 43/2008 revoked 0718440 and made new TCO 0803880 on 23 April 2008, with the Revocation date of effect as from 29 October 2007
Overview
The Tariff Concessions Revocation Instrument 43/2008, made under the Customs Act 1901, was enacted to address the need for updating tariff classifications within the Australian customs tariff system. This legislative instrument was created to respond to changes in tariff classifications as a result of amendments to the Customs Tariff Act 1995, or decisions made by the Administrative Appeals Tribunal, or advice from Customs officers. The revocation of Tariff Concession Order (TCO) 0718440 and the creation of TCO 0803880 was necessitated by a change in the tariff classification from 8302.41.00 to 8302.50.00, which came into effect on 23 April 2008. This instrument was issued by the Chief Executive Officer of Customs, in accordance with sections 269C, 269P, and 269SD of the Customs Act 1901. The revocation and creation of the new TCO align with the policy objective of maintaining accurate and up-to-date tariff classifications to ensure consistency and fairness within the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument 43/2008 is a legislative instrument under the Customs Act 1901 that applies to the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO. Specifically, it concerns the tariff classification changes that have resulted in the revocation of TCO 0718440 and the creation of TCO 0803880, effective from 23 April 2008. This Act applies to the Chief Executive Officer of Customs who has the authority to make and revoke TCOs. The geographic reach of this Act is national, as it pertains to the Australian Customs system. The Act is triggered when a tariff classification change is identified, and it ensures that the correct tariff concessions are applied to the specified goods. There are no exclusions, exemptions, or thresholds stated in the Act; however, the scope of its application may be extended or restricted through subordinate instruments as necessary. The instrument's commencement aligns with the day the tariff classification change took effect, with subsection 269SD(4) of the Act allowing for a revocation date that is either the day the old TCO came into force or a later date.
Key Provisions
The Tariff Concessions Revocation Instrument 43/2008, made under the Customs Act 1901, specifically addresses the revocation and replacement of Tariff Concession Orders (TCOs) due to changes in tariff classifications (s 269SD(2)). The main operative sections of this legislation include section 269C, which outlines the conditions under which a TCO can be made, and section 269P, which stipulates that a TCO will be made if the application meets the core criteria, specifically if no substitutable goods are produced in Australia on the day the application was lodged. Section 269SD(2) further mandates that if the Chief Executive Officer of Customs (CEO) determines that the tariff classification in a TCO has changed, they must revoke the existing TCO and issue a new one.
The obligations imposed by this Act on the parties and entities it governs include ensuring that the application for a TCO meets the criteria set out in sections 269C and 269P of the Customs Act 1901. The CEO is required to assess applications for TCOs and determine whether they meet the core criteria. Furthermore, if the CEO finds that the tariff classification has changed, they must promptly revoke the existing TCO and issue a new one, as stipulated in section 269SD(2). This ensures that the correct tariff rates are applied to the goods in question.
There are no explicit offences or penalties mentioned in the explanatory statement for the revocation and replacement of TCOs under this Instrument. However, failure to comply with the tariff classification and application requirements could potentially lead to incorrect tariff rates being applied to goods, which may result in financial implications for the parties involved. The Instrument, made on 23 April 2008, revokes TCO 0718440 and introduces TCO 0803880, effective from 29 October 2007. This change was necessitated by a shift in tariff classification from 8302.41.00 to 8302.50.00. The commencement of the Instrument follows the provisions of section 269SD(4), which allows the revocation to take effect from the day the old TCO came into force or a later date, as specified in section 269SD(6).