EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 60/2007
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 60/2007 was made on
29 March 2007. This instrument revokes 0620218 of classification 8543.30.90 and makes new TCO 0704541 of classification 8543.30.00. 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 60/2007 revokes TCO 0620218 and makes new TCO 0704541 in its place, with effect from 1 January 2007.
Overview
The Tariff Concessions Revocation Instrument 60/2007, enacted on 29 March 2007, addresses the need to adjust tariff concessions in light of amendments to the Customs Tariff Act 1995. This instrument was introduced by the Chief Executive Officer of Customs under the authority granted by Part XVA of the Customs Act 1901. The primary objective of this instrument is to ensure that the tariff concessions remain aligned with the updated tariff classifications as stipulated in the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The revocation of the old tariff concession order and the introduction of a new one are designed to maintain the integrity of the tariff concession scheme by reflecting the most current tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 60/2007 operates under the authority of Part XVA of the Customs Act 1901, which establishes a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation applies to specific goods that benefit from lower customs duty rates as outlined in a TCO, ensuring that these concessions are subject to review and adjustment in line with amendments to the Customs Tariff Act 1995. The instrument revokes the existing TCO 0620218 for classification 8543.30.90 and introduces a new TCO 0704541 for classification 8543.30.00, reflecting changes implemented by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which took effect from 1 January 2007. The scope of this instrument is limited to the specified goods and their tariff classifications, with the revocation and new TCO taking immediate effect from the date of the tariff amendment. Given the nature of the changes as minor and procedural, no consultation was deemed necessary, and the instrument commenced on the effective date of the tariff amendment.
Key Provisions
The Tariff Concessions Revocation Instrument 60/2007, made under sections 269C and 269P of the Customs Act 1901, serves to revoke an existing Tariff Concession Order (TCO) and establish a new TCO, reflecting changes in the Customs Tariff Act 1995. Specifically, section 269SD(2) requires the Chief Executive Officer of Customs (CEO) to revoke the existing TCO (section 269C) if, due to tariff amendments, the classification stated in the TCO will no longer apply from a specified date. This revocation is accompanied by the creation of a new TCO (section 269P) with an updated classification, effective from the same date.
The Act imposes several obligations on the CEO. Firstly, the CEO must ensure that when a TCO is made, the core criteria, such as the absence of substitutable goods produced in Australia, are met. Secondly, when changes in the Customs Tariff Act 1995 necessitate a revision in tariff classifications, the CEO must promptly revoke the existing TCO and issue a new one to reflect the updated tariff classification. This ensures that the customs duties applied remain aligned with the current tariff schedules.
In terms of penalties and consequences for non-compliance, the Act does not explicitly outline specific criminal or civil penalties for breaches related to the revocation or issuance of TCOs. However, the failure to comply with the requirements under the Customs Act 1901 could potentially lead to broader administrative consequences, such as fines or other enforcement actions as deemed appropriate by the relevant authorities. The precise penalties would be determined based on the specific nature of the non-compliance and the discretion of the courts or regulatory bodies involved.
In summary, the Tariff Concessions Revocation Instrument 60/2007 facilitates the alignment of tariff concessions with changes in the Customs Tariff Act 1995, ensuring that customs duties accurately reflect current tariff classifications. The CEO’s role is pivotal in maintaining the integrity of this process, and any failure to adhere to the statutory requirements could result in administrative repercussions.