EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 61/2007
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 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 61/2007 was made on 23 March 2007. It revokes TCO 0614916 and makes TCO 0704205. The tariff classification has been changed from 5206.41.10 to 5206.42.00.
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. 61/2007 revoked 0614916 and made new TCO 0704205 on 23 March 2007.
Overview
The Tariff Concessions Revocation Instrument No. 61/2007 was enacted to address issues arising from changes in tariff classification under the Customs Act 1901. This legislation was introduced to ensure that tariff concessions on certain goods remain accurate and applicable in line with updated tariff classifications. The instrument was created to revoke an existing Tariff Concession Order (TCO) and establish a new one, reflecting the changed tariff classification from 5206.41.10 to 5206.42.00. The Customs Act 1901 allows the Chief Executive Officer of Customs to make and revoke TCOs, and this instrument was made in accordance with the provisions of sections 269C, 269P, and 269SD of the Act. The instrument was issued by the CEO and came into effect on the date when the tariff classification ceased to apply to the goods. The enacting body was the Parliament of Australia, with the aim of maintaining the integrity and effectiveness of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 61/2007 operates under the framework established by Part XVA of the Customs Act 1901, which allows for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument specifically revokes TCO 0614916 and introduces TCO 0704205, reflecting a change in tariff classification from 5206.41.10 to 5206.42.00. This change in classification is triggered by an amendment to the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. The revocation and creation of the new TCO apply from the day the previous tariff classification ceased to be applicable, ensuring continuity in tariff application without substantial alteration to existing arrangements. The instrument is designed to maintain the integrity of the customs duty scheme by ensuring that goods receive appropriate tariff treatment in line with legislative and tariff updates.
Key Provisions
The Tariff Concessions Revocation Instrument 61/2007, made under the Customs Act 1901, outlines specific changes to tariff concessions for certain goods. The instrument revokes Tariff Concession Order (TCO) 0614916 and establishes TCO 0704205 (sections 269C, 269P, and 269SD). This revocation and establishment of new tariff concessions are due to changes in tariff classifications resulting from amendments to the Customs Tariff Act 1995 or decisions by courts or tribunals. The new TCO applies a different tariff classification to the goods in question, specifically changing from 5206.41.10 to 5206.42.00.
The Act imposes certain obligations on the Chief Executive Officer of Customs (CEO) when it comes to managing tariff concessions. Specifically, under section 269SD(2), the CEO is mandated to revoke a TCO if the tariff classification specified in the order no longer applies to the goods due to amendments in the Customs Tariff Act 1995, court decisions, or written advice from a Customs officer. Additionally, the CEO must issue a new TCO that reflects the updated tariff classification from the date of revocation. Section 269SD(4) clarifies that the revocation and new TCO take effect from the date the old tariff classification ceased to apply, which can be either the date the original TCO came into force or a later date.
The Act also provides clarity on the timing and legal framework for these changes. Section 269SD(6) ensures that these provisions operate despite the prohibitions outlined in section 12 of the Legislative Instruments Act 2003, which generally restricts the creation of retrospective legislative instruments. This ensures that the CEO can make the necessary tariff adjustments without being constrained by retrospective legislative rules.
Failure to comply with the requirements set out in the Customs Act 1901 could result in various legal consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, breaches of customs laws can generally lead to significant financial penalties and potential criminal charges. For instance, under section 232 of the Customs Act 1901, individuals or entities found guilty of offences related to the improper use of tariff concessions could face substantial fines and imprisonment. The exact penalties would depend on the nature and severity of the breach.