EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 56/2006
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 56/2006 was made on 19 July 2006. It revokes TCO 0606371 and makes TCO 0611750. The tariff classification has been changed from 5903.10.90 to 3926.90.90 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. 56/2006 revoked 0606371 and made new TCO 0611750 on 19 July 2006.
Overview
The Customs Act 1901 was enacted to provide a comprehensive framework for the regulation of imports and exports within Australia, and to ensure the collection of relevant duties and taxes. The Tariff Concessions Revocation Instrument 56/2006 was introduced to address the need for tariff classification adjustments in response to changes in the Customs Tariff Act 1995, court decisions, or advice from Customs officers. This instrument was made by the Chief Executive Officer of Customs under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. The policy objective is to ensure that tariff concessions accurately reflect the current tariff classifications of goods, thereby maintaining the integrity and fairness of the tariff system. The instrument revokes the previous Tariff Concession Order (TCO) and replaces it with a new TCO to reflect the updated tariff classification, without requiring formal consultation due to the minor and machinery nature of the change.
Scope and Application
The Customs Act 1901, under its Part XVA, establishes a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation applies to any goods that are subject to a TCO, which are determined based on specific criteria, including the absence of substitutable goods produced in Australia at the time of application. The Act extends its jurisdiction nationally, applying across the Commonwealth of Australia. The Tariff Concessions Revocation Instrument 56/2006 specifically revokes TCO 0606371 and introduces a new TCO 0611750, effective from 19 July 2006, due to a change in tariff classification. This change was prompted by an amendment in the Customs Tariff Act 1995. The revocation and creation of these orders are governed by subsection 269SD(2) of the Customs Act 1901, which mandates the revocation of a TCO if the tariff classification no longer applies, and the issuance of a new TCO. The commencement of the new order occurs from the day the tariff classification ceases to apply, as specified in subsection 269SD(2) and (4), and this takes precedence over certain retrospective prohibitions outlined in section 12 of the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 56/2006, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0606371 and introduces a new TCO, 0611750. This change was necessitated by a shift in tariff classification from 5903.10.90 to 3926.90.90, as outlined in sections 269C and 269P (269SD(2)) of the Act. Specifically, this Instrument was issued on 19 July 2006 by the Chief Executive Officer of Customs (CEO) due to the application of changes in the Customs Tariff Act 1995. This change in tariff classification led to the revocation of the previous order and the issuance of a new one, effective from the same date. The new TCO will apply from the day the tariff classification change came into effect, as stipulated in section 269SD(4).
The primary obligation imposed by the Act on the parties involved is the adherence to the revised tariff classification. This means that all parties must now comply with the new TCO 0611750, which specifies the new tariff classification for the goods in question. The CEO's role under the Act is to ensure that any changes in tariff classifications or legal decisions that impact the application of a TCO are promptly addressed. This involves the CEO making the necessary orders to revoke the existing TCO and issue a new one, as mandated by section 269SD(2). The new TCO must accurately reflect the current tariff classification, ensuring that all parties involved are aware of and comply with the updated regulations.
The Act does not explicitly state offences or penalties for non-compliance with the revised TCO. However, it is implied that failure to comply with the terms of the new TCO could lead to legal consequences under the broader provisions of the Customs Act 1901. This may include the imposition of fines, penalties, or other legal actions that the Act provides for in cases of non-compliance with customs regulations. The maximum penalties for such breaches would typically be determined by the specific nature of the offence and the discretion of the courts, as outlined in the general enforcement provisions of the Act.