EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 52/2006
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 52/2006 was made on 2 June 2006. It revokes TCO 9701341 and makes TCO 0609232. The tariff classification has been changed from 8527.31.00 to 8527.39.00 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. 52/2006 revoked 9701341 and made new TCO 0609232 on 2 June 2006.
Overview
The Tariff Concessions Revocation Instrument 52/2006 was enacted in 2006 under the Customs Act 1901 to address the need for updating tariff concessions in response to changes in tariff classifications. This instrument was developed in response to changes within the Customs Tariff Act 1995, decisions from the Administrative Appeals Tribunal, or advice from Customs officers, which necessitated adjustments to the tariff classification of certain goods. The Customs Act 1901 allows the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders, which apply lower rates of customs duty to specific goods. The policy objective behind this instrument is to ensure that the tariff concessions remain aligned with current tariff classifications, thus maintaining the integrity and effectiveness of the customs duty scheme.
The Tariff Concessions Revocation Instrument 52/2006 revoked Tariff Concession Order 9701341 and established a new Tariff Concession Order 0609232, reflecting a change in tariff classification from 8527.31.00 to 8527.39.00. This revocation and creation of a new order were made on 2 June 2006, with the changes taking effect from the day the previous tariff classification ceased to apply. The instrument was implemented without consultation due to its minor and machinery nature, and it ensures compliance with legislative requirements by explicitly stating its effect despite certain retrospective prohibitions outlined in the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 52/2006, made under the Customs Act 1901, addresses the revocation and creation of Tariff Concession Orders (TCOs), which apply to specific goods by assigning them a lower rate of customs duty. This instrument is applicable to entities or individuals involved in the importation of goods that are subject to the TCOs, specifically those affected by the changes in tariff classifications as outlined in the instrument. The instrument revokes TCO 9701341 and establishes TCO 0609232, reflecting an adjustment in the tariff classification from 8527.31.00 to 8527.39.00, necessitated by an amendment in the Customs Tariff Act 1995. The revocation and creation of these TCOs are mandated by the Chief Executive Officer of Customs, who must act when satisfied that the tariff classification no longer applies due to specified reasons. The instrument's jurisdictional reach is national, encompassing all territories within Australia, and it takes effect from the day when the tariff classification ceased to apply, ensuring that the new TCO is effective from the revocation date. The instrument does not apply to any other goods not specifically mentioned within its scope.
Key Provisions
The Tariff Concessions Revocation Instrument 52/2006, under the Customs Act 1901, focuses on the revocation of an existing Tariff Concession Order (TCO) and the creation of a new one. Specifically, section 269SD(2) outlines the circumstances under which the Chief Executive Officer of Customs (CEO) must revoke a TCO, such as when the tariff classification of the goods changes due to amendments in the Customs Tariff Act 1995 or a court decision. This Instrument revoked TCO 9701341 and established TCO 0609232 on 2 June 2006. The change in tariff classification from 8527.31.00 to 8527.39.00 was due to a tariff classification change.
The Act imposes several obligations on the CEO and relevant parties. Primarily, the CEO must ensure that the correct tariff classification is applied to goods, as per section 269C and 269P. If the CEO is satisfied that the tariff classification in a TCO no longer applies, they must revoke the existing TCO and issue a new one, as stipulated in section 269SD(2). This process ensures that the correct customs duty rates are applied based on the current tariff classification. The new TCO takes effect from the day of revocation, as stated in section 269SD(4).
The Act also outlines specific consequences for non-compliance. Although the explanatory statement does not explicitly list offences or penalties, it is clear that failure to adhere to the requirements of the Customs Act 1901, including the revocation and creation of TCOs, could result in legal ramifications. Such actions might lead to the imposition of fines or other penalties as prescribed by the Act or related legislation. The penalties for breaches of customs regulations are typically severe, reflecting the importance of compliance in maintaining the integrity of Australia's customs system.
Under section 269SD(6), the Instrument takes effect despite section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments. This ensures that the revocation and creation of TCOs are legally enforceable, even in cases where retrospective changes would otherwise be disallowed. This provision highlights the importance of maintaining accurate tariff classifications and the legal framework supporting the Customs Act 1901.