EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 68/2008
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 68/2008 was made on 24 June 2008. It revokes TCO 8732744 and makes TCO 0810529. The tariff classification has been changed from 8708.99 to 8708.50.59 because of a tariff classification change.
Consultation
No consultation was undertaken since the change is minor or 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. 68/2008 revoked 8732744 and made new TCO 0810529 on 24 June 2008, with the Revocation date of effect as from 1 January 2007
Overview
The Customs Act 1901, enacted by the Parliament of Australia, governs the administration of customs duties and regulations concerning the importation and exportation of goods. Part XVA of this Act establishes a scheme for Tariff Concession Orders (TCOs), which provide lower rates of customs duty on specified goods, contingent on certain criteria being met. The Tariff Concessions Revocation Instrument 68/2008, created under this Act, addresses a specific issue arising from changes in tariff classifications. It was introduced to ensure the continued accuracy and relevance of tariff concessions in line with amendments to the Customs Tariff Act 1995 or decisions by courts or tribunals. The Instrument revokes TCO 8732744 and introduces TCO 0810529, reflecting a change in tariff classification from 8708.99 to 8708.50.59, effective from 1 January 2007. The revocation and creation of these orders were made to maintain compliance with current tariff regulations and to uphold the integrity of the customs duty system.
Scope and Application
The Tariff Concessions Revocation Instrument No. 68/2008, made under the Customs Act 1901, applies to specific tariff concession orders (TCOs) related to customs duty on imported goods. It revokes the existing TCO 8732744 and establishes a new TCO 0810529, reflecting changes in tariff classification necessitated by amendments in the Customs Tariff Act 1995. This instrument is applicable to the goods affected by these TCOs and is administered by the Chief Executive Officer of Customs, who is tasked with ensuring the application of appropriate tariff classifications. The instrument operates within the Commonwealth jurisdiction, affecting entities involved in the import and export of goods subject to the revised tariff classifications. There are no stated exclusions or exemptions in this instrument, which directly amends the TCOs to align with the updated tariff classification. The commencement of the revocation and the new TCO is governed by the date on which the tariff classification change took effect, ensuring compliance with the legislative provisions and applicable regulations.
Key Provisions
The Tariff Concessions Revocation Instrument 68/2008, under the Customs Act 1901, focuses on the revocation of a Tariff Concession Order (TCO) and the creation of a new TCO (sections 269C, 269P, 269SD). Specifically, it revokes TCO 8732744 and introduces TCO 0810529. The change in tariff classification from 8708.99 to 8708.50.59 was necessitated by an amendment in the Customs Tariff Act 1995. This legislative instrument was enacted on 24 June 2008 and the changes it introduced took effect from 1 January 2007.
The Customs Act 1901 imposes specific obligations on the Chief Executive Officer of Customs (CEO). Section 269SD(2) mandates that the CEO must revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods. This can occur due to a tariff classification change, a court decision, or written advice from a Customs officer. Additionally, the CEO is required to issue a new TCO reflecting the updated tariff classification. The act specifies that these changes can take effect from the day the original TCO came into force or a later date, as outlined in section 269SD(4). Importantly, the provisions of section 269SD prevail over section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments, as stated in section 269SD(6).
The Tariff Concessions Revocation Instrument 68/2008 does not impose any direct obligations on parties or entities governed by the Customs Act 1901. Instead, it sets the framework for how tariff concessions are managed and adjusted by the CEO. The CEO’s role is pivotal in ensuring that the correct tariff classifications are applied to goods, maintaining the integrity of the customs duty system.
In terms of penalties and consequences, the explanatory statement does not explicitly detail any criminal or civil penalties for breaches of the Tariff Concessions Revocation Instrument 68/2008. However, general provisions under the Customs Act 1901 do provide for penalties in cases of non-compliance with customs regulations. For instance, section 223 of the Act specifies that an offence against it carries a maximum penalty of 10,000 penalty units or imprisonment for five years, or both, for individuals, and 50,000 penalty units or both for bodies corporate. The penalties for breaching the Act would apply if any party fails to adhere to the tariff classifications as determined by the CEO under the new TCO.