EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 59/2012
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 59/2012 was made on 07 July 2010. It revokes TCO 0905677 and makes TCO 1030549. The tariff classification has been changed from 8412.29.00 to 8413.50.90.
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. 59/2012 revoked 0905677 and made new TCO 1030549 on 07 July 2010.
Overview
The Tariff Concessions Revocation Instrument 59/2012, enacted on 7 July 2010, addresses the issue of tariff classifications under the Customs Act 1901. This instrument was introduced to ensure that tariff classifications remain accurate and reflective of current legislative and judicial interpretations. The Customs Act 1901, administered by the Chief Executive Officer of Customs, allows for the creation and revocation of Tariff Concession Orders (TCOs) to provide tariff concessions on certain goods. The policy objective behind this instrument was to update the tariff classification for specific goods to align with amendments in the Customs Tariff Act 1995 or court decisions. This was achieved by revoking TCO 0905677 and issuing a new TCO 1030549 with the updated tariff classification. The instrument was enacted by the Parliament of Australia, ensuring the Customs Act's provisions are effectively administered and kept up-to-date with changes in related legislation and judicial rulings.
Scope and Application
The Customs Act 1901, specifically under Part XVA, governs the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. The Act applies to goods that are subject to a TCO, where a lower rate of customs duty is applicable. The revocation and creation of new TCOs are governed by sections 269C, 269P, and 269SD, which mandate that the CEO can revoke and reissue a TCO if the tariff classification of the goods changes due to amendments in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. The application of the Act is national in scope, covering the entire Commonwealth of Australia, and it applies to any entity or individual involved in the import or export of goods affected by the tariff concessions. The Act does not specify any exclusions or exemptions, and its provisions can be further detailed or modified by subordinate instruments, which are not mentioned in the explanatory statement provided. The commencement of the revocation and new TCO, as stipulated in the Tariff Concessions Revocation Instrument No. 59/2012, was effective from 07 July 2010, with the revocation of TCO 0905677 and the creation of TCO 1030549, reflecting the change in tariff classification from 8412.29.00 to 8413.50.90.
Key Provisions
The Tariff Concessions Revocation Instrument 59/2012, made under the Customs Act 1901, is a legislative instrument that revokes an existing Tariff Concession Order (TCO) and establishes a new one. This Instrument was created to address changes in tariff classifications that affect the goods subject to the TCO (sections 269C and 269P). Specifically, it revokes TCO 0905677 and introduces TCO 1030549, reflecting a change in tariff classification from 8412.29.00 to 8413.50.90 (subsection 269SD(2)). The revocation and new TCO are effective from the day the old tariff classification ceased to apply to the goods, as specified in subsection 269SD(4). This date can either be the day the old TCO came into force or a later date, as stipulated in the Act (subsection 269SD(6)).
The Customs Act 1901 imposes certain obligations on the Chief Executive Officer of Customs (CEO), who is responsible for making and revoking TCOs. Under this Act, the CEO must revoke a TCO if certain conditions are met, such as changes in the tariff classification of goods, as determined by an amendment to the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or advice from a Customs officer (subsection 269SD(2)). The CEO must then issue a new TCO for the affected goods with the updated tariff classification. This process ensures that the duty rates applied to imported goods remain consistent with the current tariff classifications.
Failure to comply with the provisions of the Customs Act 1901, including the revocation and issuance of TCOs, could result in legal consequences. While the explanatory statement does not explicitly detail penalties for non-compliance, breaches of the Customs Act can generally lead to enforcement actions, fines, or other penalties as determined by the relevant authorities. The specific consequences depend on the nature and severity of the breach, as well as any additional legislative provisions that may apply.
The Tariff Concessions Revocation Instrument 59/2012 was enacted without consultation because the changes are considered minor or of a machinery nature, and they do not substantially alter existing arrangements. This decision aligns with the requirements under the Legislative Instruments Act 2003, which allows for certain legislative instruments to be made without consultation if they meet specific criteria. The Instrument came into effect on 07 July 2010, as stated in the document, ensuring that the new tariff classification is applied to the affected goods from that date.