EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 57/2007
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, because of an amendment of the Customs Tariff Act 1995, the CEO is satisfied that the tariff classification that is stated in a TCO to apply to the goods the subject of the TCO will not, with effect from a particular day, apply 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 that day.
Instrument
Tariff Concessions Revocation Instrument Number 57/2007 was made on
04 April 2007. This instrument revokes 0619612 of classification 8421.19.90 and makes new TCO 0704544 of classification 8421.19.00. The instruments reflect changes to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007.
Consultation
No consultation was undertaken since the change is minor or machinery in nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(2) provides that the orders revoking the TCOs have effect from the day that the CEO is satisfied that the tariff classifications stated to apply to the goods the subject of the TCOs will not apply to those goods. Further, the new TCOs have effect from that day. Tariff Concessions Revocation Instrument Number 57/2007 revokes TCO 0619612 and makes new TCO 0704544 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 57/2007, enacted on 4 April 2007, addresses the need to update tariff concession orders in response to amendments to the Customs Tariff Act 1995, as introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This instrument was developed under the authority of the Customs Act 1901, specifically within the framework of Part XVA which allows the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders. The objective of this instrument is to ensure that the tariff classifications applied to certain goods remain accurate and relevant, thereby maintaining the integrity and effectiveness of the tariff concessions scheme. The revocation and replacement of specific tariff concession orders reflect the changes in tariff classifications that took effect from 1 January 2007, ensuring compliance with the updated tariff schedule.
Scope and Application
The Tariff Concessions Revocation Instrument 57/2007, made under the Customs Act 1901, pertains specifically to the revocation and creation of Tariff Concession Orders (TCOs) for goods classified under the Customs Tariff Act 1995. This instrument applies to the goods that were previously subject to the revoked TCO 0619612 and now to the new TCO 0704544, affecting the tariff classifications from 8421.19.90 to 8421.19.00. The Act governs the application and revocation of TCOs by the Chief Executive Officer of Customs, ensuring that lower customs duty rates are appropriately applied to goods where no substitutable goods are produced in Australia. This legislative action directly impacts the import duties on specific goods and is reflective of changes made by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The instrument revokes the old TCO and establishes a new one, maintaining the legislative intent of the Customs Act while adapting to updated tariff classifications.
Key Provisions
The Tariff Concessions Revocation Instrument 57/2007, under sections 269C and 269P of the Customs Act 1901, operates by revoking a Tariff Concession Order (TCO) and replacing it with a new one when there are changes to the tariff classification of certain goods. Specifically, section 269SD(2) mandates that the Chief Executive Officer of Customs must make such changes if they are satisfied that the tariff classification stated in the TCO no longer applies to the goods, effective from a particular date. This instrument revokes TCO 0619612 and introduces new TCO 0704544, both with effect from 1 January 2007, reflecting amendments in the Customs Tariff Act 1995 as per the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.
The Act imposes specific obligations on the Chief Executive Officer of Customs to monitor tariff classifications and ensure that the goods subject to TCOs are correctly classified. When changes in tariff classifications occur, the CEO must promptly issue orders to revoke the existing TCO and replace it with a new one, ensuring that the updated classification is accurately reflected. These obligations are crucial to maintaining the integrity of the tariff concession scheme and ensuring that goods are appropriately taxed.
Breach of the requirements to correctly classify goods under the Customs Act 1901 can lead to significant consequences. If a TCO is not revoked or a new one is not issued when required, it could result in incorrect tariff rates being applied to the goods, leading to either overpayment or underpayment of customs duty. The consequences of such breaches can include financial penalties, interest on the unpaid duty, and potential legal action. While the specific penalties are not detailed in the explanatory statement, they are typically governed by the broader provisions of the Customs Act 1901, which can include fines and other civil or criminal penalties for non-compliance. The precise penalties would depend on the nature and extent of the breach, as well as any additional relevant legislation.