EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 49/2006
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsection 269SC(1) of the Act, the CEO must decide whether of not her or she is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO;
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
If the CEO is satisfied of those matters but is also satisfied that a narrower TCO could have been made on the day the request to revoke was lodged, the TCO must revoke the TCO and make, in its place, such a narrower TCO (subsection 269SC(4) refers).
FIP Pty Ltd requested that the CEO revoke TCO 0509435 which covers locomotive bogie brake parts.
Instrument
Tariff Concession Instrument No 49/2006 was made on 17 May 2006. It revokes TCO 0509435 and remakes a narrower TCO 0606808 covering locomotive bogie brake parts as the CEO is satisfied that he or she would not have made the old TCO but could have made the narrower TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged.
Subsection 269SC(7) provides that if a narrower TCO is made in place of another TCO, that narrower TCO comes into force from the date of effect of the revocation of the other TCO.
Subsection 239SD(8) provides that subsections 269SC(6) and 269SC(7) have effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Instrument No.49/2006 revoked 0509435 and made the narrower TCO No. 0606808 on 17 May 2006.
Overview
The Tariff Concessions Revocation Instrument 49/2006 was enacted to address the need for revoking and replacing a tariff concession order in response to a request from a producer claiming to manufacture substitutable goods. This instrument was established under the Customs Act 1901 and was introduced by the Australian Parliament. The objective of this legislation is to ensure that tariff concessions are only granted when there are no substitutable goods produced in Australia. This process allows for the revocation of an existing tariff concession order if a producer can demonstrate that they now produce goods that were previously not being produced domestically, thereby ensuring the integrity and fairness of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 49/2006 applies to the revocation and subsequent remaking of Tariff Concession Orders (TCOs) under Part XVA of the Customs Act 1901. Specifically, it addresses the revocation of TCO 0509435, which covers locomotive bogie brake parts, at the request of FIP Pty Ltd. This Instrument is applicable to the Chief Executive Officer of Customs (CEO) who is responsible for making and revoking TCOs. The CEO must determine whether the conditions for revocation are met, which includes verifying that substitutable goods are now produced in Australia and that a narrower TCO could have been made on the day of the revocation request. The Instrument revokes TCO 0509435 and replaces it with a narrower TCO 0606808, effective from the date of the revocation request. This process ensures that tariff concessions are only granted when appropriate and can be adjusted based on changes in the production of substitutable goods within Australia. The Instrument operates nationally, reflecting its purpose under Commonwealth legislation.
Key Provisions
The Tariff Concessions Revocation Instrument 49/2006 primarily operates under sections 269C, 269P, 269SB, and 269SC of the Customs Act 1901. Section 269C outlines the process for making Tariff Concession Orders (TCOs), while section 269P details the criteria for such orders. Section 269SB allows for the request to revoke a TCO if a producer claims to manufacture substitutable goods in Australia. Section 269SC sets out the requirements for the Chief Executive Officer of Customs (CEO) to decide on the revocation of a TCO. The Instrument revokes TCO 0509435 and replaces it with a narrower TCO 0606808, following a request by FIP Pty Ltd.
Under the Customs Act 1901, the CEO is obligated to review any request to revoke a TCO under section 269SC(1). The CEO must determine if the requester is a producer of substitutable goods and whether a narrower TCO could have been made. If satisfied with these conditions, the CEO must revoke the existing TCO and, if possible, issue a narrower TCO as per section 269SC(4). Additionally, section 269SC(1A) mandates that the CEO publish a notice in a Gazette upon receiving a revocation request, detailing the TCO in question.
The Act imposes specific obligations on the CEO regarding the revocation process. These include assessing the requester's status as a producer of substitutable goods, determining whether the TCO could have been narrower, and deciding whether to revoke the existing TCO and issue a narrower one. The CEO must also ensure that the revocation and any new TCO comply with the Act's provisions, including the commencement dates stipulated in subsections 269SC(6) and 269SC(7).
Breaches of the requirements set out in the Customs Act 1901 may result in civil or criminal consequences. While the Act does not specify maximum penalties, breaches could lead to legal actions under other relevant sections of the Act or other applicable laws. Non-compliance with the CEO's decisions or the failure to properly revoke or remake a TCO could expose parties to legal scrutiny, potentially resulting in penalties or other legal remedies.