EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 48/2008
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 48/2008 was made on 3 May 2008. It revokes TCO 0516327 and makes TCO 0805819. The tariff classification has been changed from 8419.89.90 to 8477.80.00 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. 48/2008 revoked 0516327 and made new TCO 0805819 on 3 May 2008, with the Revocation date of effect as from 18 November 2005
Overview
The Tariff Concessions Revocation Instrument 48/2008, enacted on 3 May 2008, is an instrument under the Customs Act 1901 that addresses the issue of tariff concession orders that require revocation due to changes in tariff classifications. The Customs Act 1901, specifically Part XVA, outlines the framework for creating and revoking Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The problem this instrument addresses is the need to adjust or revoke TCOs when there are changes in tariff classifications, as mandated by sections 269C, 269P, and 269SD of the Act. This ensures that the appropriate tariff concessions continue to apply accurately and legally to the relevant goods. The policy objective, as implied by the instrument, is to maintain the integrity of the customs tariff system by ensuring that tariff concessions are applied correctly in accordance with the latest classifications. The instrument was enacted by the Australian government, and no consultation was undertaken as the changes were of a minor or machinery nature, not substantially altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 48/2008, enacted under the Customs Act 1901, applies to the revocation and establishment of Tariff Concession Orders (TCOs) for specific goods. It operates by revoking TCO 0516327 and establishing TCO 0805819, reflecting a change in tariff classification due to amendments in the Customs Tariff Act 1995. This Act is applicable to entities or individuals involved in the importation of goods affected by the TCOs, particularly those who rely on the tariff concessions for their customs duty obligations. The instrument's jurisdiction is national, encompassing the entire Commonwealth of Australia. The scope of the Act is limited to customs duties and tariff classifications, and it does not extend to other forms of taxation or regulatory compliance. The instrument became effective from the day it was made, 3 May 2008, with the revocation of the old TCO taking effect from 18 November 2005. The instrument does not include any exclusions or exemptions and operates as a direct amendment to existing tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 48/2008, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0516327 and replaces it with TCO 0805819, effective from 18 November 2005. This change was necessary because of a revision in the tariff classification of goods, shifting from 8419.89.90 to 8477.80.00 as per the Customs Tariff Act 1995. The instrument was issued on 3 May 2008, following the Chief Executive Officer of Customs' determination that the original tariff classification was no longer applicable due to the specified amendment.
Under this instrument, the obligations of the parties involved primarily revolve around compliance with the new tariff classification as outlined in TCO 0805819. The Act imposes a duty on importers and exporters to ensure that their goods are classified correctly under the revised tariff codes, thereby adhering to the updated customs duty rates and any associated regulations. This includes maintaining accurate records and documentation that reflect the new classification to facilitate smooth customs processing and compliance with Australian customs laws.
Failure to comply with the new TCO can result in significant legal consequences. Importers and exporters may face penalties for misclassification of goods, which can lead to overpayment or underpayment of customs duties. The Act provides for financial penalties, and in severe cases, criminal charges may be applicable for deliberate non-compliance or fraud. The exact penalties depend on the nature and extent of the breach but may include fines and potential imprisonment for serious violations.
Additionally, the Tariff Concessions Revocation Instrument 48/2008 operates within the legal framework set by sections 269C, 269P, and 269SD of the Customs Act 1901. These sections outline the process for making and revoking TCOs, ensuring that the instrument adheres to the legislative requirements for such changes. The instrument's effect is designed to be retrospective, as provided by subsection 269SD(6), which allows the revocation and new TCO to take effect from the date when the original classification ceased to apply, despite the prohibitions on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003.