Overview

The Tariff Concessions Revocation Instrument 5/2009, enacted as part of the Customs Act 1901, addresses the problem of revoking tariff concession orders (TCOs) that were initially granted under the scheme established by Part XVA of the Act. This legislative instrument was introduced to provide a mechanism for the Chief Executive Officer of Customs to revoke a TCO when there has been a change in circumstances, specifically when a producer in Australia begins to manufacture goods that were previously not produced domestically. The revocation process is initiated by a request from a producer claiming to manufacture substitutable goods, and if the CEO is satisfied with the request, the TCO is revoked. The policy objective is to ensure that tariff concessions are only applied when genuinely necessary, preventing potential over-reliance on imported goods and fostering local production. The revocation was triggered by a request from Wilson Transformer Co Pty Ltd, who claimed to be capable of producing substitutable goods in relation to transformers, the subject of TCO 0831075. Following the required consultation and notification processes as mandated by the Act, the Tariff Concessions Revocation Instrument 5/2009 was enacted on 2 April 2009, effectively revoking the tariff concession from that date. This ensures that the tariff concession is revoked immediately upon the CEO's satisfaction of the revocation criteria, aligning with the provisions of the Customs Act 1901 and the Legislative Instruments Act 2003.

Scope and Application

The Tariff Concessions Revocation Instrument 5/2009, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Order 0831075, which concerns customs duty concessions on transformers. This instrument applies to entities such as Wilson Transformer Co Pty Ltd that are engaged in the production of substitutable goods in Australia. The Act mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if satisfied that the applicant is a producer of substitutable goods and that the TCO would not have been issued if the application was made on the day of the request. The revocation of TCO 0831075 is effective from 2 April 2009, the date on which the Instrument was made, despite any prohibitions on retrospective legislative instruments under the Legislative Instruments Act 2003. The instrument ensures that the revocation is published in a Gazette as soon as practicable, detailing the particulars of the TCO in question.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument 5/2009 (F2009L01667) focus on the revocation of Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, section 269SB allows a producer in Australia of substitutable goods to request the Chief Executive Officer (CEO) of Customs to revoke a TCO. Under subsections 269SC(1) and (3), the CEO must revoke a TCO if satisfied that the applicant is indeed a producer of substitutable goods and that the TCO would not have been made had the application for it been lodged on the day the request for revocation was made. This process is detailed in section 269SC and is triggered by a request from a party claiming to produce substitutable goods in Australia. The Act imposes certain obligations and requirements on the parties involved. Firstly, any party claiming to be a producer of substitutable goods must formally request the CEO to revoke a TCO, providing all necessary evidence to substantiate their claim (section 269SB). The CEO, in turn, must evaluate the request and provide a reasoned decision, which may include revoking the TCO if the criteria in section 269SC(1) and (3) are met. Additionally, the CEO must publish a notice in the Gazette as soon as practicable after receiving a revocation request, detailing the request and the specifics of the TCO in question (subsection 269SC(1A)). This transparency measure ensures that all stakeholders are informed about the revocation process. Breaches of the provisions under the Customs Act 1901 can lead to various civil and criminal consequences. While the specific Instrument does not detail penalties, the overarching Act provides a framework for potential sanctions. For instance, section 239SD(8) ensures that the revocation of a TCO takes effect from the date the request was lodged, circumventing any retrospective prohibitions under section 12 of the Legislative Instruments Act 2003. Failure to comply with the Act’s provisions could result in civil penalties or even criminal charges, depending on the severity of the breach. The maximum penalties can vary widely but generally include fines and, in more severe cases, imprisonment, as per the relevant sections of the Customs Act 1901 and other applicable laws.