EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 45/2008
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 45/2008 was made on 22 April 2008. It revokes TCO 0611082 and makes TCO 0803870. The tariff classification has been changed from 7411.22.00 to 7411.21.00 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. 45/2008 revoked 0611082 and made new TCO 0803870 on 22 April 2008, with the Revocation date of effect as from 3 July 2006
Overview
The Tariff Concessions Revocation Instrument 45/2008, enacted in 2008, addresses the need for the revocation and reissuance of Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument was introduced to respond to changes in tariff classifications that render existing TCOs obsolete, ensuring the continued accuracy and relevance of customs duty rates. The enacting body for this instrument is the Chief Executive Officer of Customs, who is mandated under sections 269C and 269P of the Customs Act to make and revoke TCOs as necessary. The policy objective is to maintain an efficient and fair customs duty system by ensuring that tariff concessions accurately reflect the current tariff classifications of imported goods.
The instrument revokes TCO 0611082 and issues a new TCO, 0803870, effective from the date the tariff classification change took effect, ensuring the continued application of appropriate tariff rates. The revocation and reissuance process is designed to be seamless, with the new TCO taking effect from the day the old one was revoked. This ensures minimal disruption to trade and compliance for importers.
Scope and Application
The Tariff Concessions Revocation Instrument 45/2008 applies to the revocation and replacement of Tariff Concession Orders (TCOs) under the Customs Act 1901. It specifically pertains to the cessation of TCO 0611082 and the introduction of TCO 0803870, triggered by a change in tariff classification from 7411.22.00 to 7411.21.00. This instrument is applicable to the goods that were subject to the revoked TCO and now fall under the new TCO, thereby affecting the customs duty rates applicable to these goods. The instrument’s reach is national, operating within the framework established by the Customs Act 1901, which governs customs duties and related concessions throughout Australia. There are no stated exclusions or exemptions in this particular instrument, and it does not set any thresholds for its application. The instrument’s commencement is governed by subsection 269SD(2) of the Customs Act 1901, which mandates that the revocation takes effect from the date the tariff classification no longer applies to the goods, with the new TCO effective from the revocation date. The revocation date is set as 3 July 2006, while the new TCO 0803870 was implemented on 22 April 2008.
Key Provisions
The Tariff Concessions Revocation Instrument 45/2008 under the Customs Act 1901, specifically sections 269C and 269P, outlines the process for revoking and replacing Tariff Concession Orders (TCOs). According to section 269SD(2), if the Chief Executive Officer (CEO) of Customs is satisfied that a TCO's tariff classification has changed due to an amendment of the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. This particular instrument revokes TCO 0611082 and establishes TCO 0803870 due to a change in tariff classification from 7411.22.00 to 7411.21.00. The revocation and new order are effective from 3 July 2006, the date when the original tariff classification ceased to apply.
The Act imposes obligations on the CEO to ensure that tariff concessions are accurately applied and updated as necessary. This includes monitoring changes in tariff classifications and making appropriate orders to reflect these changes. The CEO must also ensure that any new TCOs accurately reflect the current tariff classifications, thereby maintaining compliance with the Customs Tariff Act 1995. Additionally, the CEO is responsible for issuing public notices or other means of communication to inform stakeholders of the revocation and new TCO.
Failure to comply with the provisions of the Customs Act 1901 and related instruments can lead to civil and criminal penalties. Under the Customs Act, breaches of tariff concession orders can result in fines, with the maximum penalties varying based on the severity and intent of the breach. For instance, section 269A of the Act provides for penalties including substantial fines for knowingly or negligently contravening the Act, which could extend to imprisonment in more severe cases. The Act also includes provisions for recovery of duties and other charges due, as well as interest and penalties for non-compliance. The legislative framework ensures that the tariff concessions are enforced rigorously to maintain the integrity of the customs duty system.