EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 51/2006
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 51/2006 was made on 19 May 2006. It revokes TCO 9607699 and makes TCO 0608568. The tariff classification has been changed from 8479.50.90 to 8428.90.00 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. 51/2006 revoked 9607699 and made new TCO 0608568 on 19 May 2006.
Overview
The Customs Act 1901 was enacted to establish the framework for the administration of customs and excise duties in Australia, including provisions for tariff concessions. One such provision is addressed by the Tariff Concessions Revocation Instrument 51/2006, made under the authority of the Customs Act. This instrument was introduced to address the need for the revocation of Tariff Concession Orders (TCOs) when tariff classifications change due to amendments in the Customs Tariff Act 1995, court decisions, or written advice from Customs officers. The Tariff Concessions Revocation Instrument No 51/2006 was enacted by the Chief Executive Officer of Customs (the CEO) on 19 May 2006, revoking TCO 9607699 and instituting TCO 0608568. The change in tariff classification from 8479.50.90 to 8428.90.00 was due to a tariff classification change, necessitating the revocation and re-establishment of the tariff concession order. The revocation took effect from the day the tariff classification no longer applied to the goods, with the new TCO effective from the day of revocation. This instrument was enacted without consultation, as the changes were considered minor and of a machinery nature, not substantially altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 51/2006 operates under the framework established by Part XVA of the Customs Act 1901, which governs the making and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument specifically addresses the revocation of TCO 9607699 and the creation of new TCO 0608568, reflecting a change in tariff classification from 8479.50.90 to 8428.90.00. The Act applies to any goods subject to the specified tariff classifications and to any entities or individuals involved in the importation of such goods. The geographic scope of the Act is national, as it pertains to customs duties across Australia. There were no exclusions, exemptions, or thresholds specified in this particular instrument. The instrument came into effect on the date of its making, 19 May 2006, and the changes apply retrospectively from the day the previous tariff classification ceased to apply, in accordance with the provisions of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 51/2006 (Instrument 51/2006) operates under sections 269C, 269P, and 269SD of the Customs Act 1901, allowing the Chief Executive Officer of Customs (CEO) to revoke a Tariff Concession Order (TCO) and establish a new one. Specifically, section 269SD(2) mandates the revocation of a TCO when there is a change in tariff classification, as confirmed by an amendment to the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. This change results in the original tariff classification no longer applying to the goods.
Under the Instrument, the CEO revoked TCO 9607699 and issued TCO 0608568 on 19 May 2006. This action was necessary because the tariff classification changed from 8479.50.90 to 8428.90.00. The revocation and the creation of the new TCO took effect from the date when the original tariff classification ceased to apply, and the new TCO was established from the moment of revocation. This sequence ensures that the tariff concessions are aligned with the current tariff classification.
The Instrument imposes obligations on parties affected by the tariff changes to comply with the new TCO. Importers and exporters must ensure that their goods are classified and assessed according to the new tariff classification, 8428.90.00. Failure to comply with the new TCO may result in the application of higher customs duties or other penalties as stipulated in the Customs Act 1901. The CEO's decision to revoke and replace the TCO ensures that the customs duty rates are correctly applied according to the current tariff classification.
Breaches of the new TCO or failure to comply with the revised tariff classification can lead to civil or criminal consequences. Under the Customs Act 1901, penalties can include fines and, in severe cases, imprisonment. For instance, section 250 of the Act provides for substantial fines and imprisonment for offences related to incorrect classification or duty evasion. The maximum penalties for such offences can vary, but they are designed to enforce compliance and ensure the integrity of the customs system.