EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 67/2011
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 subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO 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; and
− 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.
Muir Engineering Pty Ltd requested that the CEO revoke TCO 0948193 which covers anchor winches.
Instrument
Tariff Concessions Revocation Instrument No 67/2011 was made on 21 June 2010. It revokes TCO 0948193 as the CEO is satisfied that Muir Engineering Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the 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 239SD(8) provides, in part, that subsection 269SC(6) 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Tariff Concessions Revocation Instrument No.67/2011, TCO 0948193, was revoked on 21 June 2010 with the Revocation date of effect as from 28 April 2010.
Overview
The Tariff Concessions Revocation Instrument 67/2011, enacted to address the revocation of Tariff Concession Orders under the Customs Act 1901, was introduced to ensure that tariff concessions are only applied where appropriate and where Australian producers are not already capable of producing the relevant goods. This instrument was made by the Chief Executive Officer of Customs following a request from Muir Engineering Pty Ltd for the revocation of Tariff Concession Order 0948193, which pertains to anchor winches. The revocation was based on the CEO's satisfaction that Muir Engineering Pty Ltd is a producer of substitutable goods and that, had the request been made on the day the original tariff concession was applied for, it would not have been granted. This legislative instrument aims to uphold the integrity of the tariff concession scheme by preventing unnecessary concessions when domestic production capabilities exist.
Scope and Application
The Tariff Concessions Revocation Instrument 67/2011, operating under the Customs Act 1901, applies to the revocation of Tariff Concession Orders (TCOs) made by the Chief Executive Officer of Customs. This instrument specifically targets the revocation of TCO 0948193, which pertains to anchor winches, following a request by Muir Engineering Pty Ltd. The Act applies to any person or entity that has lodged an application for the revocation of a TCO on the grounds of being a producer of substitutable goods in Australia, which were not being produced on the day the original TCO application was lodged. The instrument's jurisdictional reach extends across the Commonwealth of Australia, as it operates under the authority granted by the Customs Act 1901. The instrument does not specify any exclusions or exemptions beyond what is outlined in the core criteria of the Act, which mandates the presence of substitutable goods produced in Australia at the time of the original application. Any further extension or restriction of the application of this instrument would be through subordinate instruments as per the provisions of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 67/2011 (F2011L01203) concerns the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901. Specifically, this instrument revokes TCO 0948193, which was related to anchor winches. The main sections involved are 269C, 269P, 269SB, and 269SC, which outline the criteria for making and revoking TCOs. Under these sections, a TCO is made if no substitutable goods are produced in Australia on the day the application is lodged, and it can be revoked if a producer of substitutable goods requests its revocation and the CEO is satisfied with certain conditions (sections 269SB and 269SC). The revocation takes effect on the day the request is lodged, despite any prohibitions on retrospective legislative instruments (section 269SC(6)).
The obligations imposed by this legislation are primarily on the Chief Executive Officer (CEO) of Customs. The CEO must ensure that a TCO is made if the application meets the criteria, and they must revoke a TCO if they are satisfied that a producer of substitutable goods has requested its revocation and that the TCO would not have been made under the current conditions (subsections 269SC(1) and (3)). Additionally, the CEO must publish a notice in a Gazette as soon as practicable after receiving a request for revocation, detailing the request and the full particulars of the TCO (subsection 269SC(1A)). These obligations ensure transparency and accountability in the process of making and revoking TCOs.
There are no specific offences, penalties, or consequences outlined for breaching the provisions of the Tariff Concessions Revocation Instrument 67/2011 itself. However, the broader Customs Act 1901 does provide for penalties and consequences related to breaches of customs laws. For instance, the Act allows for fines and imprisonment for offences such as fraudulent importation or exportation of goods, which could indirectly relate to the administration of TCOs. The maximum penalties for such offences can vary significantly depending on the severity and circumstances of the breach, but they can include substantial fines and imprisonment terms. The specific penalties are not detailed in this instrument but would be governed by the general provisions of the Customs Act 1901.