EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 45/2006
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 45/2006 was made on 10 May 2006. It revokes TCO 0509440 and makes TCO 0607492. The tariff classification has been changed from 8716.90.00 to 8428.90.00 because 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. 45/2006 revoked 0509440 and made new TCO 0607492 on 10 May 2006.
Overview
The Tariff Concessions Revocation Instrument 45/2006 was enacted to address the need for updating tariff classifications within the framework established by the Customs Act 1901. The Customs Act, through its Part XVA, allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, with a lower rate of customs duty applicable to goods covered by such orders. The revocation instrument specifically targets the amendment of tariff classifications, ensuring they align with changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. This legislative instrument was introduced to streamline the process of tariff adjustments without necessitating extensive consultation, given the minor and machinery nature of the changes involved. The instrument was enacted by the relevant authority under the Customs Act 1901, and its policy objective is to maintain the integrity and effectiveness of the tariff concession scheme by ensuring accurate and current tariff classifications.
Scope and Application
The Customs Act 1901, through Part XVA, establishes a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This Act applies to goods that benefit from lower customs duties when they are subject to a TCO, provided that no substitutable goods are produced in Australia in the ordinary course of business. The geographic reach of this Act is national, as it applies across all jurisdictions in Australia. The Act also allows for the revocation of TCOs and the creation of new ones based on specific criteria such as amendments to the Customs Tariff Act 1995, court decisions, or advice from Customs officers. Notably, the Act includes provisions that enable certain retrospective legislative instruments to circumvent restrictions imposed by the Legislative Instruments Act 2003. The Tariff Concessions Revocation Instrument No. 45/2006 revoked TCO 0509440 and established TCO 0607492 on 10 May 2006, reflecting changes in tariff classifications. The revocation and creation of these TCOs were effective from the specified dates as outlined in the Act, demonstrating the legislative mechanism to adapt tariff concessions in response to changes in tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 45/2006, made under the Customs Act 1901, focuses on the revocation and replacement of a Tariff Concession Order (TCO) to adjust tariff classifications for specific goods. This instrument (section 269SD(2)) mandates the revocation of TCO 0509440 and the introduction of TCO 0607492, reflecting a change in tariff classification from 8716.90.00 to 8428.90.00. The primary objective of this legislative instrument is to align the tariff classification with current tariff regulations, ensuring that the correct customs duty rates are applied to the goods in question. The instrument was issued on 10 May 2006 and came into effect on the same day, as per subsection 269SD(2) of the Customs Act.
The obligations imposed by the Tariff Concessions Revocation Instrument 45/2006 are primarily on the Chief Executive Officer of Customs (CEO), who must ensure that the tariff classification in a TCO accurately reflects the current tariff schedule. The CEO must revoke the existing TCO when it is identified that the tariff classification no longer applies to the goods due to changes in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. Furthermore, the CEO is required to issue a new TCO with the correct tariff classification effective from the date of revocation, ensuring that the goods are subject to the appropriate customs duty rates.
Non-compliance with the requirements of the Tariff Concessions Revocation Instrument 45/2006 can lead to significant legal consequences. The Customs Act 1901 provides for various offences and penalties for breaches related to tariff concessions. While the specific penalties for non-compliance with this instrument are not detailed in the Explanatory Statement, general provisions under the Customs Act outline potential fines and imprisonment for violations of customs regulations. For instance, section 269 of the Act stipulates that any person who contravenes the provisions of a TCO may be liable to a penalty of up to $22,200 for a corporation and $4,440 for an individual, or imprisonment for up to two years, or both. Such penalties underscore the importance of adhering to the correct tariff classifications to avoid legal repercussions.