EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 54/2007
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 54/2007 was made on 4 April 2007. It revokes TCO 0108955 and makes TCO 0704539. The tariff classification has been changed from 8422.30.90 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. 54/2007 revoked 0108955 and made new TCO 0704539 on 4 April 2007.
Overview
The Tariff Concessions Revocation Instrument 54/2007, enacted on 4 April 2007, is an instrument that operates under the Customs Act 1901. This legislation was introduced to address the need for flexibility in tariff classifications within the Customs Act, ensuring that tariff concessions accurately reflect changes in tariff classifications or court decisions. The enacting body responsible for this instrument is the Chief Executive Officer of Customs, who is empowered to make and revoke Tariff Concession Orders in accordance with the Act. The policy objective of this instrument is to ensure that tariff concessions remain aligned with current tariff classifications and legal interpretations, thereby maintaining the integrity of the customs duty system.
The Tariff Concessions Revocation Instrument 54/2007 revoked Tariff Concession Order 0108955 and introduced Tariff Concession Order 0704539 due to a change in tariff classification. This change was deemed necessary as a result of an amendment to the Customs Tariff Act 1995, which necessitated the revocation of the existing concession and the creation of a new one. The instrument was enacted without consultation as the changes were considered minor and of a machinery nature, not substantially altering existing arrangements. The revocation and new concession took effect from the day the previous tariff classification ceased to apply to the goods, in compliance with the provisions of the Customs Act.
Scope and Application
The Tariff Concessions Revocation Instrument 54/2007, operating under the Customs Act 1901, applies to the revocation of Tariff Concession Orders (TCOs) concerning the tariff classification of goods subject to customs duty. The Act applies to any goods that were previously subject to a TCO and for which a change in tariff classification necessitates a revocation of the existing concession and the creation of a new order. The legislation is administered by the Chief Executive Officer of Customs, who must ensure that the conditions for making or revoking TCOs are met as stipulated in sections 269C, 269P, and 269SD of the Act. The revocation and creation of new TCOs under this Instrument are effective from the date the tariff classification change takes effect, as outlined in subsections 269SD(2), (4), and (6) of the Act, which also provides the legal basis for circumventing the retrospective application restrictions imposed by the Legislative Instruments Act 2003. The Instrument revokes TCO 0108955 and establishes TCO 0704539, reflecting the amendment in tariff classification from 8422.30.90 to 8422.40.90 due to a change in the Customs Tariff Act 1995.
Key Provisions
The Tariff Concessions Revocation Instrument 54/2007 operates under the Customs Act 1901 (sections 269C, 269P, and 269SD), allowing the Chief Executive Officer of Customs (CEO) to revoke and replace Tariff Concession Orders (TCOs) when there are changes in tariff classification or other specified circumstances. Specifically, section 269SD(2) of the Act mandates that if the CEO is satisfied that a TCO’s tariff classification no longer applies due to an amendment to the Customs Tariff Act 1995, a court decision, or advice from a Customs officer, the CEO must revoke the existing TCO and issue a new one. This revocation and replacement process is intended to ensure that the appropriate tariff rates continue to apply to imported goods.
The obligations imposed by the Instrument on parties and entities include compliance with the new tariff classification as set out in the replacement TCO. Importers and other affected parties must adhere to the updated tariff rates for the specified goods, which in this case changed from 8422.30.90 to 8422.40.90. This change is a direct result of the tariff classification adjustment and is effective from the date specified in the Instrument. Importers must ensure their customs documentation and declarations accurately reflect the new tariff classification to avoid any potential issues with customs authorities.
Failure to comply with the requirements of the Tariff Concessions Revocation Instrument 54/2007 could result in penalties under the Customs Act 1901. For instance, incorrect tariff classification may lead to financial penalties, fines, or other administrative consequences as outlined in the Act. While the specific penalties are not detailed in the Instrument itself, they typically include monetary fines that can vary depending on the nature and extent of the non-compliance. Additionally, persistent or severe breaches could lead to more serious legal consequences, including potential criminal charges in cases of deliberate or willful misconduct.