EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 44/2007
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 44/2007 was made on
8 March 2007. This instrument revokes 0614387 of classification 8519.89.30 and makes new TCO 0703468 of classification 8519.81.20. 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 44/2007 revokes TCO 0614387 and makes new TCO 0703468 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 44/2007 was enacted in 2007 to address changes in tariff classifications necessitated by amendments in the Customs Tariff Act 1995. This instrument revokes the existing Tariff Concession Order (TCO) 0614387 and replaces it with a new TCO 0703468, reflecting the changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The instrument was issued under the authority of the Customs Act 1901, specifically pursuant to subsection 269SD(2A), which mandates the revocation and replacement of TCOs when tariff classifications change. The objective of this legislation is to ensure that the appropriate tariff concessions continue to apply to goods subject to the Customs Act, in alignment with updated tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 44/2007 operates under the Customs Act 1901, specifically within the framework of Tariff Concession Orders (TCOs) as outlined in Part XVA of the Act. This legislation applies to goods that are subject to a TCO, which grants a lower rate of customs duty. The Instrument concerns the revocation of an existing TCO, 0614387 of classification 8519.89.30, and the creation of a new TCO, 0703468 of classification 8519.81.20, effective from 1 January 2007. These changes were necessitated by amendments to the Customs Tariff Act 1995 as reflected in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The revocation and the new TCO are applicable to the relevant goods and are managed by the Chief Executive Officer of Customs, who must ensure that the core criteria for TCOs are met, particularly in terms of the production status of substitutable goods in Australia. The geographic reach of this legislation is national, as it pertains to customs duties and tariffs across Australia, aligning with the federal jurisdiction of the Customs Act 1901.
Key Provisions
The main operative sections of this legislation (Tariff Concessions Revocation Instrument 44/2007) are sections 269C, 269P, and 269SD(2A) of the Customs Act 1901. Section 269C outlines the conditions under which Tariff Concession Orders (TCOs) may be made, while section 269P specifies the criteria for making such orders. Section 269SD(2A) addresses the situation where tariff classifications for goods under a TCO are amended, requiring the revocation of the existing TCO and the creation of a new one with updated classifications.
This Act imposes obligations on the Chief Executive Officer of Customs (CEO) to ensure that tariff concession orders are made or revoked in accordance with the specified criteria. Specifically, the CEO must ensure that a TCO is made if the application meets the core criteria, and that a TCO is revoked and a new one is made if an amendment to the Customs Tariff Act 1995 changes the tariff classification of goods subject to a TCO. The CEO must also ensure that these orders are made with effect from the day specified in the Customs Tariff Amendment Act.
Failure to comply with the provisions of this Act may result in civil or criminal penalties. The maximum penalties for breaches of the Customs Act 1901 can be substantial, including fines and imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any applicable provisions within the broader Customs Act. For instance, serious breaches may attract penalties under sections 252 and 253 of the Customs Act, which can include fines of up to $22,200 for individuals and significantly higher amounts for corporations, along with potential imprisonment terms. It is important to note that the penalties are designed to enforce compliance and deter non-compliance with the tariff concession requirements outlined in the Act.