EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 58/2006
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 58/2006 was made on 22 July 2006. It revokes TCO 0515068 and makes TCO 0611539. The tariff classification has been changed from 5206.25.00 to 5206.45.00 because 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. 58/2006 revoked 0515068 and made new TCO 0611539 on 22 July 2006.
Overview
The Customs Act 1901 was enacted to provide a framework for the regulation of customs and excise in Australia. The Act addresses the need for streamlined and effective customs administration by establishing a system for the imposition and collection of customs duty and excise. In particular, Part XVA of the Act introduces a scheme under which Tariff Concession Orders (TCOs) can be made and revoked by the Chief Executive Officer of Customs, aiming to provide tariff concessions on goods that are not produced in Australia. This mechanism ensures that Australian industries are protected from unfair competition while facilitating the import of goods that are not domestically produced. The Tariff Concessions Revocation Instrument 58/2006 was made by the Chief Executive Officer of Customs on 22 July 2006, revoking TCO 0515068 and introducing new TCO 0611539, reflecting a minor tariff classification change. The policy objective was to align the tariff classification with changes in the Customs Tariff Act 1995, ensuring the accuracy and effectiveness of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 58/2006 applies to the revocation and creation of Tariff Concession Orders (TCOs) under the Customs Act 1901, specifically affecting the tariff classification of goods for customs duty purposes. This Act pertains to the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs. The instrument revokes TCO 0515068 and introduces TCO 0611539 in its place due to changes in tariff classifications. This instrument is applicable nationally and is made in accordance with sections 269C, 269P, and 269SD of the Customs Act 1901, which outline the criteria for making and revoking TCOs based on changes in tariff classifications or decisions of relevant authorities. The instrument's commencement is effective from the day the tariff classification no longer applies to the goods, with the revocation and new order taking effect from the specified date, as provided under subsection 269SD(2) and (4) of the Act. The instrument was made on 22 July 2006 and operates despite the prohibitions in section 12 of the Legislative Instruments Act 2003 regarding retrospective legislative instruments, as specified in subsection 269SD(6).
Key Provisions
The Tariff Concessions Revocation Instrument 58/2006 (sections 269C, 269P, and 269SD) is designed to manage tariff concessions under the Customs Act 1901. It provides the legal framework for the Chief Executive Officer of Customs (CEO) to revoke an existing Tariff Concession Order (TCO) and establish a new one when necessary. Specifically, section 269C outlines the process for making a TCO, while section 269P defines the conditions under which a TCO can be revoked. Section 269SD further elaborates on the criteria for revocation, particularly when a tariff classification is altered due to changes in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer.
The Act imposes several obligations on the CEO and other relevant parties. The CEO must ensure that a TCO is made only if the application meets the core criteria, meaning that on the date of application, no substitutable goods are produced in Australia in the ordinary course of business (section 269C). Additionally, the CEO must revoke a TCO and create a new one if certain conditions are met, such as a change in tariff classification, and notify the relevant stakeholders of these changes (section 269SD). This process ensures that the tariff concessions remain accurate and aligned with current legal and tariff requirements.
Breach of the provisions under the Customs Act 1901 can lead to various consequences. For instance, if an entity fails to comply with the tariff classification requirements as stipulated in the TCO, it may face civil penalties, including fines. The exact penalties are not specified in the explanatory statement but would typically align with the penalties outlined in the Customs Act. Furthermore, persistent non-compliance could result in criminal charges, potentially leading to imprisonment, depending on the severity of the breach and the discretion of the court. The Act ensures that these measures are in place to maintain the integrity of the tariff concession scheme and to uphold the regulatory framework governing customs duties in Australia.