EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 55/2007
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 55/2007 was made on 4 April 2007. It revokes TCO 0516813 and makes TCO 0704540. 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. 55/2007 revoked 0516813 and made new TCO 0704540 on 4 April 2007.
Overview
The Tariff Concessions Revocation Instrument 55/2007 was enacted under the Customs Act 1901 to address discrepancies in tariff classifications for specific goods, particularly in response to changes in the Customs Tariff Act 1995. This instrument was introduced by the Chief Executive Officer of Customs, acting in accordance with the provisions set out in sections 269C, 269P, and 269SD of the Customs Act 1901. The policy objective is to ensure that the correct tariff concessions are applied to goods, reflecting any changes in tariff classifications as mandated by legislative amendments or court decisions. The instrument revokes Tariff Concession Order 0516813 and introduces Tariff Concession Order 0704540, reflecting the change in tariff classification from 8422.30.90 to 8422.40.90 due to a tariff classification change. The instrument came into effect on the date when the old tariff classification ceased to apply to the goods, ensuring that the changes align with the statutory requirements and prevent any retrospective application prohibited by the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 55/2007, made under the Customs Act 1901, specifically addresses the revocation of a Tariff Concession Order (TCO) and the issuance of a new TCO in its place. This instrument applies to the goods subject to the revoked and new TCOs, affecting the customs duty rates applied to those goods. The instrument is a direct response to changes in tariff classifications as stipulated under the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. The revocation and subsequent creation of a new TCO apply to the affected goods from the day the tariff classification no longer applies, potentially retroactive to the day the original TCO came into force. This change in tariff classification impacts entities and individuals involved in the importation of these goods, ensuring compliance with updated customs duty rates. The Instrument has a national jurisdictional reach, aligning with the Commonwealth's legislative authority under the Customs Act. The Instrument does not require consultation as the changes are minor and of a machinery nature.
Key Provisions
The Tariff Concessions Revocation Instrument 55/2007, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0516813 and introduces TCO 0704540, which is effective from the same date, 4 April 2007. This instrument addresses a change in tariff classification from 8422.30.90 to 8422.40.90 due to amendments in the Customs Tariff Act 1995. Section 269SD(2) of the Customs Act mandates the revocation of a TCO if the tariff classification stated in the order no longer applies to the goods concerned, and requires a new TCO to be made effective from the revocation date.
The Customs Act imposes specific obligations on the Chief Executive Officer of Customs (CEO) when it comes to TCOs. The CEO must ensure that a TCO is only made if the goods in question are not substitutable and are not produced in Australia in the ordinary course of business, as per sections 269C and 269P. Additionally, the CEO is required to revoke a TCO and issue a new one if the tariff classification changes, as outlined in subsection 269SD(2). This ensures that the correct tariff rates are applied based on the most current classifications.
Under the Customs Act, breaches of the provisions related to TCOs can lead to various penalties. Although the explanatory statement does not specify the exact penalties, the general provisions of the Customs Act may apply. Penalties can include fines and, in some cases, imprisonment for more serious breaches. The exact penalties would depend on the nature and severity of the breach, as well as any additional legislation that may apply.
The Tariff Concessions Revocation Instrument 55/2007 came into effect on 4 April 2007. The revocation of TCO 0516813 and the introduction of TCO 0704540 were made effective from this date. The timing of the revocation and the new TCO's effect is governed by subsection 269SD(4) of the Customs Act, which allows for the revocation to take effect from the day the old tariff classification no longer applied, or a later date. Furthermore, subsection 269SD(6) ensures that this provision operates despite any prohibitions on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003.