EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 53/2012
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(2A) of the Act provides that if, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 53/2012 was made on
16 February 2012. This instrument revokes 1127867 of classification 8479.89.90 and makes new TCO 1204897 of classification 8456.90.10. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2A) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 53/2012 revokes TCO 1127867 and makes new TCO 1204897 in its place, with effect from 1 January 2012.
Overview
The Tariff Concessions Revocation Instrument 53/2012, enacted in 2012, was introduced to address discrepancies in tariff classifications due to amendments in the Customs Tariff Act 1995. This instrument operates under the Customs Act 1901, administered by the Parliament of Australia, and aims to ensure that tariff concessions accurately reflect the updated classifications. The policy objective is to maintain consistency in tariff application, thereby facilitating smooth trade processes by preventing any confusion or misapplication of customs duties. The instrument revokes the previous tariff concession order (TCO 1127867) and introduces a new one (TCO 1204897), both taking effect from 1 January 2012, to align with the changes in the Customs Tariff Act 1995 as per the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
Scope and Application
The Tariff Concessions Revocation Instrument 53/2012 pertains to the Customs Act 1901, specifically addressing the revocation and replacement of Tariff Concession Orders (TCOs) under Part XVA of the Act. This instrument applies to the Chief Executive Officer of Customs (the CEO) who is responsible for making and revoking TCOs. These orders affect goods eligible for lower customs duty rates, provided that no substitutable goods are produced in Australia in the ordinary course of business at the time the application for the TCO is lodged. The instrument revokes TCO 1127867 and establishes new TCO 1204897 to reflect the changes in tariff classification resulting from the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which took effect from 1 January 2012. The scope of the instrument is national, given the jurisdictional reach of the Customs Act 1901 across Australia. The revocation and creation of the new TCOs are effective from the date specified in the instrument, ensuring that the updated tariff classifications are applied from 1 January 2012.
Key Provisions
The Tariff Concessions Revocation Instrument 53/2012 (F2012L00539) operates under the Customs Act 1901 to manage and adjust tariff concessions on specific goods imported into Australia. The key provisions of the instrument, particularly in sections 269C, 269P, and 269SD(2A), revolve around the revocation and replacement of Tariff Concession Orders (TCOs) due to changes in tariff classifications as set out in the Customs Tariff Act 1995. This particular instrument revokes TCO 1127867 and replaces it with TCO 1204897, effective from 1 January 2012. The changes are a direct result of amendments to the Customs Tariff Act 1995, specifically those enacted by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.
The obligations imposed by this Act on the parties and entities it governs include ensuring that the correct tariff classifications are applied to imported goods. For example, the Chief Executive Officer of Customs (CEO) is required to monitor changes in tariff classifications and make corresponding adjustments to TCOs. Importers and exporters must also be aware of and comply with the updated tariff classifications as reflected in the new TCOs. This ensures that the appropriate rates of customs duty are applied to the relevant goods, maintaining the integrity of the customs duty system.
The instrument outlines specific consequences for non-compliance with the provisions set forth in the Customs Act 1901 and the Tariff Concessions Revocation Instrument. While the explanatory statement does not explicitly detail the penalties for breaches, the Customs Act 1901 generally provides for both civil and criminal penalties for non-compliance with customs regulations. Civil penalties can include fines, and in more severe cases, criminal penalties may apply, including imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any relevant case law and statutory provisions.
In summary, the Tariff Concessions Revocation Instrument 53/2012 serves to update and maintain the accuracy of tariff concessions in light of changes in tariff classifications. It imposes clear obligations on the CEO and relevant parties to ensure that the correct classifications are applied to imported goods. Failure to comply with the provisions of the Customs Act 1901 and the instrument can result in both civil and criminal penalties, reinforcing the importance of adhering to the regulatory framework.