EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 52/2007
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 52/2007 was made on 4 April 2007. It revokes TCO 8433297 and makes TCO 0704537. 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. 52/2007 revoked 8433297 and made new TCO 0704537 on 4 April 2007.
Overview
The Tariff Concessions Revocation Instrument 52/2007 was introduced to address the need for tariff classification adjustments under the Customs Act 1901. This instrument, made by the Chief Executive Officer of Customs, revokes Tariff Concession Order (TCO) 8433297 and introduces a new TCO 0704537 following a change in tariff classification from 8422.30 to 8422.40.90. The instrument was enacted to ensure that the appropriate tariff classification is applied to the specified goods, as required by the Customs Act. No consultation was necessary for this instrument as the changes were deemed minor and of a machinery nature. The instrument came into effect on 4 April 2007, aligning with the day the tariff classification change took effect, and operates under the authority provided by the Customs Act despite provisions in the Legislative Instruments Act 2003 that generally prohibit retrospective legislative instruments.
Scope and Application
The Tariff Concessions Revocation Instrument 52/2007 applies to the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901, specifically concerning the tariff classification for certain goods. This instrument revokes TCO 8433297 and establishes a new TCO, 0704537, due to a change in tariff classification from 8422.30 to 8422.40.90. The legislation is designed to ensure that the appropriate tariff classification is applied to the goods, and it is executed by the Chief Executive Officer of Customs (CEO) when certain conditions, such as a tariff classification change, are met. The geographic reach of this Act is national, as it pertains to customs regulations across Australia. There are no specific exclusions or thresholds mentioned in this instrument, but it is implied that the application of TCOs is contingent on the goods not being produced in Australia in the ordinary course of business. The instrument extends its application through the subordinate mechanism of the Customs Act 1901, ensuring that the tariff concessions are appropriately adjusted in response to changes in the tariff classification.
Key Provisions
The Tariff Concessions Revocation Instrument 52/2007 under the Customs Act 1901 primarily deals with the revocation and reissuance of Tariff Concession Orders (TCOs). Section 269C allows the Chief Executive Officer of Customs to make a TCO when no substitutable goods are produced in Australia in the ordinary course of business. However, section 269P mandates the revocation of a TCO if there is an amendment to the Customs Tariff Act 1995, or if a court or an officer of Customs advises that the tariff classification stated in the TCO is no longer applicable. The Instrument revokes TCO 8433297 and issues a new TCO, 0704537, due to a change in tariff classification from 8422.30 to 8422.40.90.
The Instrument imposes several obligations on the parties governed by it. Firstly, it requires the Chief Executive Officer of Customs to closely monitor and assess the tariff classifications of goods covered by TCOs. This assessment must be made in light of any amendments to the Customs Tariff Act 1995 or any decisions by courts or administrative tribunals, as well as written advice from Customs officers. If the tariff classification changes, the CEO must revoke the existing TCO and issue a new one that reflects the updated classification. Furthermore, the Instrument mandates that the new TCO must take effect from the day the tariff classification change becomes applicable, ensuring that the updated duty rates are promptly reflected in the customs regime.
There are specific consequences for non-compliance with the provisions of this Instrument. Although the explanatory statement does not explicitly detail criminal or civil penalties for breaching the Instrument, the revocation and reissuance of TCOs are crucial for maintaining the integrity of the customs duty system. Non-compliance could potentially result in incorrect customs duty payments, leading to financial discrepancies and potential legal repercussions for the involved parties. However, since the Instrument is a legislative instrument, it primarily serves to guide the administrative actions of the CEO rather than directly impose penalties on individuals or entities.
The Instrument's operation and effect are governed by specific provisions within the Customs Act 1901. Subsection 269SD(2) provides that the revocation of a TCO and the issuance of a new TCO must occur from the day the tariff classification change becomes applicable. This ensures that the changes in duty rates are effective from the correct date. Furthermore, the Instrument's operation is governed by subsection 269SD(6), which specifies that section 269SD takes effect despite certain prohibitions in the Legislative Instruments Act 2003, ensuring that the revocation and reissuance of TCOs are permissible under the law.