EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 54/2006
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 54/2006 was made on 29 June 2006. It revokes TCO 0107315. The goods previously covered by TCO 0107315 are now covered by TCO 0610732. The tariff classification has been changed from 3817.00.19 to 3817.00.10 because of a tariff classification change due to the Customs Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006.
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. 54/2006 revokes 0107315 on 29 June 2006.
Overview
The Customs Act 1901 was enacted to facilitate and regulate the import and export of goods in Australia, among other purposes. The Tariff Concessions Revocation Instrument 54/2006 was introduced to address the need for tariff adjustments following legislative changes, ensuring that tariff concessions remain accurate and compliant with current tariff classifications. This instrument was enacted by the Chief Executive Officer of Customs, pursuant to sections 269C and 269P of the Customs Act, to revoke an existing tariff concession order (TCO) and replace it with a new order reflecting updated tariff classifications. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the correct tariff rates are applied to the relevant goods, in line with amendments to the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 54/2006 under the Customs Act 1901 applies to the revocation of Tariff Concession Order (TCO) 0107315, which was previously in effect and has now been replaced by TCO 0610732. This change was necessitated due to the Customs Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006, which altered the tariff classification from 3817.00.19 to 3817.00.10. The application of this instrument is overseen by the Chief Executive Officer of Customs, who must ensure that the tariff classification remains accurate and that the appropriate duty rates are applied to the relevant goods. The revocation and subsequent new order are effective from the date when the original tariff classification ceased to apply to the goods, as specified in subsection 269SD(2) of the Act. This instrument ensures the continuity and accuracy of tariff concessions while adhering to the statutory requirements outlined in the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 54/2006 operates under the Customs Act 1901, specifically referencing sections 269C, 269P, and 269SD. This instrument revokes Tariff Concession Order (TCO) 0107315 and replaces it with TCO 0610732, due to a change in tariff classification resulting from the Customs Tariff Amendment (Fuel Tax Reform and Other Measures) Act 2006. The revocation and new concession are effective from the day the old TCO ceased to apply, as per section 269SD(2) of the Act. The new order, TCO 0610732, applies a revised tariff classification of 3817.00.10, replacing the previous classification of 3817.00.19.
The obligations under this legislation primarily concern the Chief Executive Officer of Customs (CEO), who must make the revocation order if satisfied that the tariff classification in a TCO is no longer applicable due to changes in the Customs Tariff Act 1995, a decision by a court or the Administrative Appeals Tribunal, or written advice from an officer of Customs. The CEO must ensure that a new TCO is issued to maintain tariff concessions for the goods in question. This process is intended to ensure that tariff concessions remain relevant and accurate in the face of changes in tariff classifications or legal interpretations.
Failure to comply with the requirements of the Customs Act 1901, including the provisions for making and revoking TCOs, may result in legal consequences. Although specific penalties for non-compliance are not detailed in the explanatory statement, breaches of the Act could lead to enforcement actions, including fines or other penalties as prescribed by the relevant legislation. The precise consequences would depend on the nature and severity of the breach, as well as any additional provisions or regulations that might apply.
In summary, the Tariff Concessions Revocation Instrument 54/2006 facilitates the necessary adjustments to tariff concessions in response to changes in tariff classifications, ensuring that the concessions remain legally and operationally valid. The CEO of Customs is tasked with the responsibility of overseeing this process and ensuring that appropriate orders are made to reflect these changes accurately. Any failure to adhere to the statutory requirements could result in legal repercussions, although the specific penalties are not detailed in this explanatory statement.