EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 64/2006
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsection 269SC(1) of the Act, the CEO must decide whether of not her or she is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO;
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
If the CEO is satisfied of those matters but is also satisfied that a narrower TCO could have been made on the day the request to revoke was lodged, the TCO must revoke the TCO and make, in its place, such a narrower TCO (subsection 269SC(4) refers).
Australian Weaving Mills Pty Ltd requested that the CEO revoke TCO 0511358 which covers bed linen.
Instrument
Tariff Concession Instrument No 64/2006 was made on 12 August 2006. It revokes TCO 0511358 and remakes a narrower TCO 0613070 covering bed linen as the CEO is satisfied that he or she would not have made the old TCO but could have made the narrower TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged.
Subsection 269SC(7) provides that if a narrower TCO is made in place of another TCO, that narrower TCO comes into force from the date of effect of the revocation of the other TCO.
Subsection 239SD(8) provides that subsections 269SC(6) and 269SC(7) have effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Instrument No.64/2006 revoked 0511358 and made the narrower TCO No. 0613070 on 12 August 2006.
Overview
The Tariff Concessions Revocation Instrument 64/2006 was enacted to address the need to revoke a specific Tariff Concession Order (TCO) related to bed linen. The Customs Act 1901, under which this instrument was made, allows for the reduction of customs duty on goods covered by a TCO, provided no substitutable goods are produced in Australia. Section 269SB of the Act allows for a request to revoke a TCO if the CEO is satisfied that the applicant is a producer of substitutable goods in Australia, and that the CEO would not have made the TCO if it were being applied for on the day of the revocation request. The Instrument was enacted by the Chief Executive Officer of Customs, who revoked TCO 0511358 and remade a narrower TCO 0613070. This was done in response to a request from Australian Weaving Mills Pty Ltd. The revocation and remaking of the TCO are intended to ensure that the tariff concessions are applied in a manner consistent with the underlying policy objectives of the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 64/2006 applies to the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901, which pertains to the customs duty rates applicable to specific goods. The instrument specifically concerns the revocation of TCO 0511358, which covers bed linen, and its replacement with a narrower TCO 0613070. The process involves the Chief Executive Officer of Customs (CEO) assessing whether the revocation criteria are met, which includes confirming that no substitutable goods were produced in Australia at the time the original TCO was made, and that a narrower TCO could be made in its place. The CEO is mandated to publish a notice of the revocation request in a Gazette, ensuring transparency and providing stakeholders with relevant information. The revocation and creation of a narrower TCO are effective from the date the request to revoke was lodged, as per the provisions of the Customs Act 1901. This process underscores the administrative flexibility within the Customs Act to adapt tariff concessions based on changing production circumstances in Australia.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 64/2006, under the Customs Act 1901, involve the revocation of a Tariff Concession Order (TCO) and the creation of a narrower TCO. Specifically, section 269SB allows for a request to be made by a person claiming to be a producer in Australia of substitutable goods, asking the Chief Executive Officer of Customs (CEO) to revoke a TCO. Section 269SC(1) outlines the criteria the CEO must consider when deciding whether to revoke the TCO. If the CEO is satisfied with the request and that a narrower TCO could have been made, the CEO must revoke the existing TCO and issue a narrower one, as stated in section 269SC(4). Section 269SC(6) and (7) determine the commencement date for the revocation and the new narrower TCO. The Instrument No. 64/2006 revokes TCO 0511358 and remakes the narrower TCO 0613070.
The obligations imposed by the Act on the parties or entities it governs include ensuring that any request for the revocation of a TCO is made by a person who is a producer in Australia of substitutable goods. The CEO must then assess the request against the criteria outlined in section 269SC(1) of the Act. If the CEO determines that the request meets the criteria, they are required to revoke the existing TCO and, if appropriate, issue a narrower TCO. Furthermore, as per subsection 269SC(1A), the CEO must publish a notice in a Gazette as soon as practicable after receiving a revocation request, including the full details of the TCO in question.
The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach within the context of TCO revocation and replacement. However, the legal framework and the nature of the Act imply that any failure to comply with the legislative requirements or any misuse of the TCO scheme could potentially lead to administrative or legal repercussions. It is important for all parties involved to adhere to the criteria and processes set out in the Customs Act 1901 to avoid any adverse outcomes.