EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 51/2007
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 51/2007 was made on 4 April 2007. It revokes TCO 8635494 and makes TCO 0703472. The tariff classification has been changed from 8422.30 to 8422.40.90 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. 51/2007 revoked 8635494 and made new TCO 0703472 on 4 April 2007.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, provides a framework for managing customs duties in Australia. The Tariff Concessions Revocation Instrument 51/2007, made under the authority of the Customs Act 1901, was introduced to address the need for the revocation and replacement of Tariff Concession Orders (TCOs) when there is a change in tariff classification. This particular instrument was developed to respond to a change in tariff classification, which necessitated the revocation of TCO 8635494 and the creation of TCO 0703472. The revocation and creation of these orders were necessary to ensure that the applicable tariff classifications accurately reflect the updated tariff structure, thereby maintaining consistency and fairness within the customs duty system. The instrument was implemented on 4 April 2007, with the revocation taking effect from the day the previous tariff classification ceased to apply and the new TCO effective from the date of revocation.
Scope and Application
The Tariff Concessions Revocation Instrument 51/2007, enacted under the Customs Act 1901, applies specifically to the revocation of Tariff Concession Orders (TCOs) and the subsequent issuance of new TCOs in the event of tariff classification changes. The Act operates to regulate and adjust tariff rates on imported goods, where a TCO is in effect, to ensure that the correct customs duty is applied according to the current tariff classification. The revocation and subsequent creation of new TCOs are executed by the Chief Executive Officer of Customs, who must be satisfied that the tariff classification stated in a TCO no longer applies due to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. The geographical scope of this legislation is national, affecting all entities and industries involved in importing goods subject to TCOs within Australia. The Act does not specify exclusions, exemptions, or thresholds for its application, though it does provide that the revocation and creation of TCOs can be retrospective, circumventing the usual prohibitions set out in the Legislative Instruments Act 2003. The commencement of the new TCO follows the revocation, with the effective date being either the original commencement date of the old TCO or a later date as specified.
Key Provisions
The Tariff Concessions Revocation Instrument 51/2007, as outlined in the Customs Act 1901 (section 269SD(2)), revokes Tariff Concession Order (TCO) 8635494 and introduces a new TCO, 0703472. This change was necessitated by an amendment in the tariff classification from 8422.30 to 8422.40.90, reflecting an adjustment in the Customs Tariff Act 1995. These changes were effective from 4 April 2007, the date the instrument was made. This new order applies a different tariff rate to the specified goods, aligning with the updated classification.
Under this Act, the Chief Executive Officer of Customs (CEO) has specific obligations and duties. The CEO must ensure that the tariff classification for goods subject to TCOs accurately reflects the current tariff schedules. This involves monitoring changes in the Customs Tariff Act 1995, court decisions from the Administrative Appeals Tribunal, and any relevant advice from Customs officers. If the CEO determines that a TCO's classification no longer applies due to one of these factors, they are required to revoke the existing TCO and issue a new one with the correct classification. This process ensures that customs duties are correctly applied in accordance with the most recent tariff changes.
Breaching the provisions of the Customs Act 1901 or failing to comply with the requirements of the Tariff Concessions Revocation Instrument can lead to legal consequences. Offences under the Act can result in both civil and criminal penalties. For instance, knowingly making a false statement in an application for a tariff concession can lead to a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. Additionally, failing to comply with the duty obligations regarding tariff classifications can result in financial penalties and may also lead to legal action to enforce compliance. The specific penalties and enforcement actions depend on the nature and severity of the breach.