EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 66/2006
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 0511360 which covers bed linen.
Instrument
Tariff Concession Instrument No 66/2006 was made on 12 August 2006. It revokes TCO 0511360 and remakes a narrower TCO 0613064 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.66/2006 revoked 0511360 and made the narrower TCO No. 0613064 on 12 August 2006.
Overview
The Tariff Concessions Revocation Instrument 66/2006 was enacted in 2006 to address specific issues related to the revocation of Tariff Concession Orders (TCOs) under the Customs Act 1901. This legislation allows the Chief Executive Officer of Customs to revoke a TCO if they determine that substitutable goods are now being produced in Australia, which was not the case at the time the TCO was initially granted. The instrument was developed in response to a request from Australian Weaving Mills Pty Ltd for the revocation of TCO 0511360, which covered bed linen. The CEO was satisfied that a narrower TCO could have been made based on the current circumstances, leading to the revocation of the existing TCO and the creation of a narrower one. The policy objective is to ensure that tariff concessions are only applied when necessary and are responsive to changes in the Australian production landscape.
Scope and Application
The Customs Act 1901, as amended by the Tariff Concessions Revocation Instrument 66/2006, pertains to the regulation of customs duty on specific goods, allowing for the creation, revocation, and amendment of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This act applies to any individual or entity involved in the import or export of goods that are subject to a TCO, particularly focusing on those who may claim to produce substitutable goods in Australia, thereby influencing the tariff rates applicable to such goods. The geographical scope of this legislation is national, covering the entire Commonwealth of Australia, and it operates within the framework established by the Customs Act 1901. The Act excludes goods for which substitutable alternatives are already being produced in Australia, thereby ensuring that tariff concessions do not unfairly benefit imports at the expense of local production. The revocation and remaking of TCOs are subject to specific criteria outlined in the Act, including the necessity of public notice and consultation as stipulated by subsection 269SC(1A). The commencement of the revocation and any subsequent narrower TCOs is effective from the date the request for revocation was lodged, as per subsections 269SC(6) and 269SC(7), ensuring timely and precise application of the tariff changes.
Key Provisions
The primary sections of the Tariff Concessions Revocation Instrument 66/2006 (the Instrument) address the revocation and remaking of Tariff Concession Orders (TCOs) under the Customs Act 1901. Section 269SB of the Act permits a producer of substitutable goods to request the Chief Executive Officer of Customs (the CEO) to revoke a TCO if they believe it should not have been made. The CEO must then determine if the producer is eligible and if a narrower TCO could have been made instead (section 269SC(1) of the Act). If satisfied, the CEO must revoke the existing TCO and replace it with a narrower one (section 269SC(4) of the Act). The Instrument specifically revokes TCO 0511360, which covered bed linen, and replaces it with a narrower TCO 0613064, reflecting the CEO’s decision based on the producer's request.
The Act imposes several obligations on the parties involved. The CEO must promptly assess the validity of the request for revocation and decide whether the producer qualifies as a manufacturer of substitutable goods (section 269SC(1) of the Act). Additionally, the CEO is obligated to publish a notice in a Gazette once a request for revocation is received, including details of the TCO in question (subsection 269SC(1A) of the Act). This publication requirement ensures transparency and allows for public input, if necessary.
Failure to comply with the provisions of the Customs Act 1901 regarding TCOs can lead to legal consequences. Although the explanatory statement does not detail specific offences or penalties, breaches of customs regulations generally can result in both civil and criminal penalties. Civil penalties may include fines, while criminal penalties can encompass imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined under the broader framework of the Customs Act and other relevant legislation.
In summary, the Tariff Concessions Revocation Instrument 66/2006 outlines the process for revoking and replacing a TCO with a narrower one, contingent upon the CEO’s satisfaction with the producer’s eligibility and the potential for a narrower concession. The Act mandates transparency and public notice when a revocation request is made, ensuring accountability. Although specific penalties for breaches are not detailed, the general legal framework under the Customs Act 1901 includes both civil and criminal sanctions for non-compliance.