EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 58/2008
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(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 58/2008 was made on 13 June 2008. It revokes TCO 0716254 and makes TCO 0812046, 0812048 and 0812043. The tariff classification has been changed from 8215.99.00 to 8210.00.00, 8215.99.00 and 8205.51.00 because of a tariff classification changes.
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. 58/2008 was made on 13 June 2008. It revokes 0716254 and makes TCO’s 0812046, 0812048 and 0812043. The tariff classification has been changed from 8215.99.00 to 8210.00.00, 8215.99.00 and 8205.51.00, with the Revocation date of effect as from 25 September 2007
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the regulation of customs and excise duties. One component of this framework is the system of Tariff Concession Orders (TCOs) outlined in Part XVA, which allows for the application of lower rates of customs duty to certain goods. The Tariff Concessions Revocation Instrument 58/2008 was introduced to address changes in tariff classifications that rendered existing TCOs inapplicable to certain goods. This instrument, made on 13 June 2008, revokes TCO 0716254 and establishes new TCOs (0812046, 0812048, and 0812043) to reflect updated tariff classifications. The policy objective of this instrument is to ensure that the customs duty rates accurately reflect the current tariff classifications, thereby maintaining the integrity and fairness of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 58/2008, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Orders (TCOs) and the establishment of new TCOs. The Act applies to any goods subject to a TCO, effectively governing the customs duty rates for those goods. This instrument was necessitated by changes in tariff classifications resulting from amendments to the Customs Tariff Act 1995 or decisions by relevant authorities. The scope of the Act is national, as it operates within the Commonwealth jurisdiction of Australia. The instrument revokes TCO 0716254 and establishes new TCOs 0812046, 0812048, and 0812043, with the changes in tariff classifications taking effect from 25 September 2007. The revocation and establishment of these orders are governed by the conditions outlined in the Customs Act 1901, specifically sections 269C, 269P, and 269SD, which require the CEO of Customs to act upon certain triggers such as tariff changes or judicial decisions. The instrument was issued without prior consultation due to the minor and machinery nature of the changes.
Key Provisions
The Tariff Concessions Revocation Instrument 58/2008 (the Instrument) is a legislative tool used to modify and revoke existing Tariff Concession Orders (TCOs) under the Customs Act 1901 (the Act). This Instrument revokes Tariff Concession Order 0716254 and introduces three new TCOs (0812046, 0812048, and 0812043) effective from the revocation date, which is 25 September 2007 (subsection 269SD(4)). The changes in tariff classification from 8215.99.00 to 8210.00.00, 8215.99.00, and 8205.51.00 are due to updates in the Customs Tariff Act 1995 (subsection 269SD(2)).
Entities and individuals governed by this Instrument must comply with the new tariff classifications effective from the revocation date. The Instrument imposes specific obligations on those who import goods previously covered under TCO 0716254. They must now adhere to the updated classifications under TCOs 0812046, 0812048, and 0812043. This includes ensuring that customs duties are calculated and paid based on the new tariff rates. The Instrument also mandates that any existing TCO 0716254 must be treated as revoked, and the new TCOs must be applied in its stead.
Failure to comply with the new tariff classifications can lead to civil and criminal consequences. Importers who do not adjust their customs duty calculations to reflect the new tariff rates may be liable for underpaid duties. Additionally, if an importer deliberately misclassifies goods to avoid higher duties, they may face criminal charges. The maximum penalties for such offences can include substantial fines and, in severe cases, imprisonment. The specific penalties would be determined based on the degree of non-compliance and whether it was deliberate or inadvertent.