EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 53/2008
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 53/2008 was made on 2 May 2008. It revokes TCO 0802221 and makes TCO 0804268. The tariff classification has been changed from 7616.99.00 to 7616.12.00 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. 53/2008 revoked 0802221 and made new TCO 0804268 on 2 May 2008, with the Revocation date of effect as from 12 February 2008
Overview
The Tariff Concessions Revocation Instrument 53/2008 was enacted to address a specific issue arising from changes in tariff classification under the Customs Act 1901. This legislation, issued by the Chief Executive Officer of Customs, serves to revoke an existing Tariff Concession Order (TCO) and establish a new TCO to reflect the updated tariff classification. The Act was introduced to ensure that the correct tariff rates are applied to imported goods, maintaining consistency and compliance with the current tariff schedule as determined by the Customs Tariff Act 1995. The revocation and re-issuance of the TCO were necessary to correct the classification of certain aluminium products from 7616.99.00 to 7616.12.00, a change that became effective from 12 February 2008. The policy objective of this legislative action was to address the minor yet critical nature of tariff classification amendments, ensuring that the application of customs duty remains accurate and aligned with legislative requirements.
Scope and Application
The Tariff Concessions Revocation Instrument 53/2008 operates under the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) within the Customs Act's scheme. It applies to goods subject to a TCO, where the concession is affected by an amendment to the Customs Tariff Act 1995, a decision of a court or the Administrative Appeals Tribunal, or written advice from a Customs officer. The revocation of an existing TCO and the creation of a new one are governed by the Act and are executed by the Chief Executive Officer of Customs, ensuring that the lower rate of customs duty continues to apply to the goods, albeit with an updated tariff classification. The Instrument revokes TCO 0802221 and replaces it with TCO 0804268, effective from 12 February 2008, due to a change in tariff classification. The Instrument’s scope is limited to the Commonwealth, impacting all entities and persons dealing with the specified goods within the Australian jurisdiction. The Act does not specify exclusions or thresholds, but the Instrument's application is confined to the particular goods affected by the tariff changes.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 53/2008 (paragraphs 269C, 269P, and 269SD) focus on the revocation and creation of Tariff Concession Orders (TCOs) under the Customs Act 1901. Section 269C outlines the conditions under which a TCO may be made, while section 269P details the revocation process. Section 269SD(2) specifically mandates that the Chief Executive Officer of Customs (CEO) must revoke a TCO if it is no longer applicable due to changes in tariff classification or decisions from the Administrative Appeals Tribunal. The instrument revokes TCO 0802221 and establishes TCO 0804268, effective from 12 February 2008.
The Act imposes several obligations on the parties involved, particularly the CEO of Customs. They must ensure that any TCOs made under the Customs Act reflect the current tariff classifications as stipulated in the Customs Tariff Act 1995. In the event of a change in tariff classification or a relevant court decision, the CEO must promptly revoke the existing TCO and issue a new one that accurately reflects the updated classification. This obligation ensures that the concessions provided are correctly aligned with the prevailing tariff regulations.
Failure to comply with the provisions of the Customs Act, including the timely revocation and issuance of TCOs, may lead to legal consequences. While the explanatory statement does not explicitly detail specific offences or penalties, breaches of the Customs Act can generally result in fines and, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, but they could include substantial financial penalties and potential imprisonment for criminal offences. The enforcement of these penalties is overseen by the relevant authorities, ensuring adherence to the legislative framework governing customs and tariff concessions.