EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 58/2012
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 58/2012 was made on 29 September 2010. It revokes TCO 0823744 and makes TCO 1042368. The tariff classification has been changed from 8428.90.00 to 8479.89.90.
Consultation
No consultation was undertaken since the change is minor or of 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. 58/2012 revoked 0823744 and made new TCO 1042368 on 29 September 2010.
Overview
The Tariff Concessions Revocation Instrument 58/2012 was enacted to address the need for adjustments in tariff classifications under the Customs Act 1901. This instrument was introduced by the Chief Executive Officer of Customs (CEO) in accordance with sections 269C, 269P, and 269SD of the Customs Act, which allow for the creation and revocation of Tariff Concession Orders (TCOs). Specifically, this instrument was necessitated by an amendment in the Customs Tariff Act 1995, which resulted in a change in the tariff classification of certain goods, thus requiring the revocation of the existing TCO and the issuance of a new one to ensure compliance with the updated tariff structure. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that goods are subject to the correct customs duty rates as per the current tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 58/2012 operates under the Customs Act 1901, specifically addressing the revocation and replacement of Tariff Concession Orders (TCOs) within the Australian Commonwealth. This instrument applies to any goods that were previously subject to TCO 0823744 and are now subject to the newly established TCO 1042368, following a change in tariff classification from 8428.90.00 to 8479.89.90. The primary function of the Act is to ensure that the correct tariff classification is applied to goods imported into Australia, thereby affecting importers, exporters, and the Customs Department. The instrument's jurisdiction extends across Australia, aligning with the overarching Customs Act 1901 which is a federal law. Any exclusions, exemptions, or thresholds are not specified within this particular instrument but would generally follow the stipulations outlined in the Customs Act 1901 and the Customs Tariff Act 1995. The revocation and new TCO become effective from the date specified in the instrument, which is 29 September 2010, and this date can be backdated to the day the original TCO came into force, as permitted under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 58/2012, made under the Customs Act 1901, primarily serves to revoke Tariff Concession Order (TCO) 0823744 and introduce a new TCO, 1042368, effective from 29 September 2010. Section 269SD(2) of the Act mandates the revocation of a TCO if the tariff classification stated in the TCO no longer applies to the goods, due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. This change ensures that the tariff classification remains accurate and relevant, thereby maintaining the integrity of the customs duty regime.
Under this Act, the Chief Executive Officer of Customs (CEO) is obligated to make such an order to revoke and replace the TCO when satisfied that the existing tariff classification no longer applies. The CEO’s decision must be made with the understanding that the revocation and the creation of a new TCO are necessary to reflect current tariff classifications accurately. The revocation and new TCO take effect from the day the tariff classification no longer applies, or from the date the old TCO came into force, as stipulated in section 269SD(4) of the Act.
Failure to comply with the provisions of the Customs Act 1901, including the timely revocation and replacement of TCOs, can result in significant legal consequences. While the explanatory statement does not detail specific offences or penalties, breaches of the Customs Act can generally lead to substantial fines and potential criminal charges. The exact penalties depend on the nature and severity of the breach, with potential maximum penalties outlined in other sections of the Act, which could include fines up to several thousand dollars or imprisonment for serious violations.
Section 269SD(6) of the Act ensures that the provisions for revoking and replacing TCOs are effective despite any prohibitions under section 12 of the Legislative Instruments Act 2003, which restricts the making of retrospective legislative instruments. This ensures that the necessary adjustments to tariff classifications can be made without being hindered by legislative constraints on retrospective changes.