EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 56/2008
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(1) of the Act provides that the CEO may revoke a TCO if he or she is satisfied that he or she would not have made the TCO now.
Instrument
Tariff Concessions Revocation Instrument 56/2008 was made on 13 June 2008. It revokes TCO 0314295 as the CEO is satisfied that he or she would not have made the TCO now.
Consultation
Subsection 269SD(1AA) provides that not later than 14 days after the CEO forms the belief that he or she would now not make a TCO, he or she must publish a notice in the Gazette:
− declaring his or her intention to make an order revoking the TCO with effect from that particular day; and
− inviting any person who might be affected by the revocation of that TCO to give a written submission to the CEO concerning the proposed revocation.
Subsection 269SD requires the CEO to consider the matters raised in any submissions.
Commencement
Subsection 269SD(1AB) provides that the order revoking the TCO has effect from the day on which the CEO formed the belief.
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 Concession Instrument No.56/2008 revoked 0314295 on 13 June 2008, with the Revocation date of effect as from 10 May 2008
Overview
The Tariff Concessions Revocation Instrument 56/2008, made under the Customs Act 1901, was enacted to address the issue of revoking tariff concession orders (TCOs) when the Chief Executive Officer of Customs determines that such concessions are no longer warranted. The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the establishment and revocation of TCOs, which afford lower rates of customs duty on specified goods. The Revocation Instrument 56/2008 specifically revokes TCO 0314295, effective from 10 May 2008, due to the CEO’s belief that the conditions for such concessions no longer exist. The process of revoking a TCO involves publishing a notice in the Gazette and considering any submissions received from affected parties within a stipulated timeframe. The instrument's commencement date aligns with when the CEO formed the belief that the TCO should be revoked, ensuring compliance with legislative requirements and addressing any potential retrospective application issues.
Scope and Application
The Customs Act 1901 governs the application and revocation of Tariff Concession Orders (TCOs) through the authority of the Chief Executive Officer of Customs (CEO). The Act applies to all entities and individuals who are subject to the lower rate of customs duty provided by a TCO, as well as to the CEO who has the responsibility to make and revoke these orders. The scope of the Act encompasses the entire Commonwealth of Australia, and it includes provisions for the revocation of specific TCOs when the CEO determines that they would not have been made under current circumstances. Notably, the CEO must follow a mandatory consultation process outlined in the Act, involving the publication of an intention to revoke a TCO in the Gazette and the consideration of any written submissions received from affected parties. This process is detailed in sections 269C, 269P, 269SD, and 269SD(1AA) of the Act, and ensures transparency and accountability in the revocation process. The revocation of TCO 0314295 by Tariff Concessions Revocation Instrument 56/2008, effective from 10 May 2008, exemplifies the application of these provisions.
Key Provisions
The Tariff Concessions Revocation Instrument 56/2008, made on 13 June 2008, revokes Tariff Concession Order (TCO) 0314295 under the Customs Act 1901 (the Act). This revocation was initiated by the Chief Executive Officer of Customs (the CEO), who was satisfied that, on the current date, they would not have made the TCO as initially granted (subsection 269SD(1)). The revocation takes effect from 10 May 2008, the date on which the CEO formed the belief that the TCO should not have been issued (subsection 269SD(1AB)). The revocation is made in accordance with subsection 269SD(1) of the Act, which allows for the revocation of a TCO if the CEO is satisfied that they would not have made the TCO now.
The obligations and requirements imposed by the Act on the CEO and potentially affected parties include the necessity for the CEO to publish a notice in the Gazette within 14 days of forming the belief that a TCO should be revoked (subsection 269SD(1AA)). This notice must declare the CEO's intention to revoke the TCO and invite any affected person to submit written submissions concerning the proposed revocation. The CEO is also required to consider any matters raised in these submissions as per subsection 269SD. Furthermore, the Act ensures that the revocation order takes effect from the date the CEO formed the belief, irrespective of any prohibitions on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003 (subsection 269SD(6)).
The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for the breach of its provisions regarding TCO revocation. However, it is understood that the revocation of a TCO could have financial implications for entities relying on the tariff concessions provided by the TCO, potentially leading to increased customs duty payments. While the Act does not specify penalties for non-compliance, any subsequent actions taken by the CEO, such as the revocation of a TCO, would legally impact the affected parties' obligations under the Customs Act.