EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 59/2007
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 59/2007 was made on
29 March 2007. This instrument revokes 0615785 of classification 5702.52.00 and makes new TCO 0704542 of classification 5702.50.90. 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 59/2007 revokes TCO 0615785 and makes new TCO 0704542 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 59/2007 was enacted under the Customs Act 1901 to address changes in the Customs Tariff Act 1995, specifically those arising from the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. This instrument, made on 29 March 2007, was designed to reflect updates in the tariff classifications that impact the application of tariff concession orders (TCOs). The instrument revokes the existing TCO 0615785 and introduces a new TCO 0704542, both effective from 1 January 2007, ensuring that the relevant customs duty rates are correctly applied to the goods in question. The revocation and reclassification were carried out by the Chief Executive Officer of Customs in accordance with the Customs Act, with no consultation deemed necessary due to the minor and machinery nature of the changes. This legislative action maintains the integrity of the tariff system and ensures compliance with the updated tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 59/2007 operates under the Customs Act 1901, applying specifically to Tariff Concession Orders (TCOs) and their revocation in accordance with changes to the Customs Tariff Act 1995. This instrument targets the application of tariff concessions to specific goods by revoking outdated or inapplicable orders and issuing new ones that reflect current tariff classifications. It applies to the goods identified by their classification codes and any entities involved in the importation of these goods. The instrument is in effect from 1 January 2007, aligning with the changes introduced by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The geographic reach of this legislation is national, as it pertains to customs duties across Australia. The instrument does not exclude any specific persons or entities but applies generally to those involved in the importation of goods affected by the changes. There are no exemptions or specific thresholds outlined in this instrument, and it extends its application through the subordinate instrument mechanism as provided for under the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 59/2007, under the Customs Act 1901, operates by revoking existing Tariff Concession Orders (TCOs) and establishing new ones in their place. Specifically, section 269SD(2) of the Act mandates that if the Chief Executive Officer (CEO) of Customs is satisfied that changes to the Customs Tariff Act 1995 will mean that the tariff classification for certain goods will no longer apply, they must revoke the existing TCO and issue a new one. This process ensures that the duty rates on goods remain aligned with the current tariff classifications. The instrument revokes TCO 0615785 for classification 5702.52.00 and introduces new TCO 0704542 for classification 5702.50.90, effective from 1 January 2007.
The Act imposes several obligations on the parties governed by it. Firstly, section 269C requires the CEO to consider applications for TCOs, ensuring that the criteria for tariff concessions are met. Section 269P outlines the process for making TCOs if the application meets the necessary criteria. Section 269SD(2) mandates that the CEO must revoke and replace TCOs when the tariff classification of the goods changes, as reflected in the Customs Tariff Act 1995. This ensures that the duty rates are accurate and compliant with the latest tariff classifications.
Failure to comply with the requirements of the Customs Act 1901 and the Tariff Concessions Revocation Instrument 59/2007 can result in significant legal consequences. Section 274 of the Act outlines various offences, including knowingly or recklessly providing false or misleading information in an application for a TCO, which can result in a penalty of up to $22,200 for individuals or $111,000 for corporations. Additionally, section 275A imposes penalties for incorrect declarations on import documents, with penalties ranging from fines to imprisonment, depending on the severity of the offence. The accuracy of tariff classifications and compliance with the Act are crucial to avoid these penalties.