EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 55/2006
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 55/2006 was made on 19 July 2006. It revokes TCO 8807636 and makes TCO 0611595. The tariff classification has been changed from 3207.20 to 3824.90.90 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. 55/2006 revoked 8807636 and made new TCO 0611595 on 19 July 2006.
Overview
The Customs Act 1901 provides a framework for the imposition of customs duties and the granting of tariff concessions. The Tariff Concessions Revocation Instrument 55/2006, enacted on 19 July 2006, addresses a specific issue within this framework by revoking an existing Tariff Concession Order (TCO) and replacing it with a new TCO. This instrument was introduced to address a situation where the tariff classification of certain goods had changed, necessitating an adjustment in the applicable customs duty rates. The instrument was created by the Chief Executive Officer of Customs in accordance with sections 269C, 269P, and 269SD of the Customs Act 1901, with the objective of ensuring that the correct tariff classification is applied to goods subject to TCOs. The revocation and creation of new TCOs ensure that the customs duty rates reflect the current tariff classifications as per the Customs Tariff Act 1995.
Scope and Application
The Tariff Concessions Revocation Instrument 55/2006 operates under the Customs Act 1901, specifically addressing the revocation and re-establishment of Tariff Concession Orders (TCOs) in response to changes in tariff classification or legal decisions. This instrument applies to goods that are subject to the TCOs, allowing for altered tariff rates based on changes in their classification, such as the shift from 3207.20 to 3824.90.90, as noted in this instance. The application of this instrument is national, affecting all entities and persons involved in the import and export of goods covered by the TCOs within Australia. The revocation and creation of new TCOs take effect from the day the tariff classification change becomes applicable, ensuring that customs duties are accurately aligned with current tariff classifications. This legislative action is overseen by the Chief Executive Officer of Customs, who must act in accordance with the provisions of the Customs Act 1901 when revoking or issuing new TCOs.
Key Provisions
The Tariff Concessions Revocation Instrument 55/2006, made under the Customs Act 1901, primarily focuses on the revocation of an existing Tariff Concession Order (TCO) and the creation of a new TCO. Section 269SD(2) of the Act requires the Chief Executive Officer of Customs (CEO) to revoke a TCO if there has been a change in tariff classification of the goods in question, as a result of an amendment to the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or written advice from an officer of Customs. This process ensures that the tariff classification accurately reflects the current customs duty rates. The Instrument revoked TCO 8807636 and introduced TCO 0611595 on 19 July 2006, changing the tariff classification from 3207.20 to 3824.90.90 due to a tariff classification change.
The obligations under this Instrument require the CEO to closely monitor changes in tariff classifications and promptly make necessary adjustments to TCOs. The CEO must ensure that the new TCO accurately reflects the updated tariff classification and that the changes are communicated effectively to all relevant stakeholders. The Instrument specifies that the revocation of the old TCO and the implementation of the new TCO should take effect from the day the tariff classification change occurred, or a later date as specified in the Instrument. Subsection 269SD(6) of the Act ensures that this process can proceed despite certain retrospective legislative restrictions.
The Instrument also outlines potential consequences for non-compliance. While the explanatory statement does not detail specific offences or penalties for breach, it is implied that failure to adhere to the updated tariff classifications could lead to incorrect customs duties being applied or imposed. This could result in financial penalties for businesses, as well as administrative actions taken by Customs to rectify the situation. The maximum penalties for such breaches would typically be determined by the applicable sections of the Customs Act 1901 and any relevant subsidiary legislation, which may include fines and other civil or criminal sanctions.