EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 69/2007
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 69/2007 was made on 18 April 2007. It revokes TCO 0704538. The tariff classification 8422.40.90 has a free rate of duty.
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.69/2007 revokes 0704538 on 18 April 2007.
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides a framework for the administration of customs duties and the application of tariff concessions to certain goods. The Act aims to facilitate international trade by offering preferential duty rates to goods that meet specific criteria, such as those not being produced domestically. Part XVA of the Act allows the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders (TCOs) based on changes in tariff classifications or other relevant factors. The Tariff Concessions Revocation Instrument 69/2007, issued on 18 April 2007, revokes Tariff Concession Order 0704538 due to a change in tariff classification, ensuring that the duty rates applied are consistent with the current customs tariff. This revocation reflects the need for the Customs Act to adapt to changes in the Customs Tariff Act 1995 and maintain the integrity of the tariff concession scheme. The instrument was made without consultation as it does not substantially alter existing arrangements and operates under the provisions of the Legislative Instruments Act 2003 to allow for its retrospective effect.
Scope and Application
The Tariff Concessions Revocation Instrument 69/2007 operates under the authority of the Customs Act 1901, specifically targeting Tariff Concession Orders (TCOs) within the Commonwealth of Australia. This instrument is pertinent to the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs, and to any entities or individuals who hold a TCO and are subject to the customs duty rates stipulated therein. The Instrument applies to goods that no longer meet the core criteria for a TCO, primarily due to changes in tariff classifications or decisions by courts or tribunals. The geographic reach of the Instrument is national, applying uniformly across Australia. The Instrument does not specify any exclusions or exemptions, but it does operate in conjunction with the Customs Tariff Act 1995, and its application can be extended or restricted through subordinate instruments as necessary. The Instrument came into effect on the day it was made, 18 April 2007, and revokes the TCO 0704538 from the same date, while a new TCO is to be made with effect from the revocation.
Key Provisions
The Tariff Concessions Revocation Instrument 69/2007, made under the Customs Act 1901 (the Act), revokes Tariff Concession Order (TCO) 0704538, which previously applied a lower rate of customs duty to certain goods. This revocation occurs under sections 269C and 269P of the Act, which outline the conditions under which a TCO can be made or revoked by the Chief Executive Officer of Customs (the CEO). Specifically, the revocation takes effect because the tariff classification in TCO 0704538 no longer applies to the goods, either due to an amendment in the Customs Tariff Act 1995, a decision by the Administrative Appeals Tribunal, or advice from an officer of Customs.
The obligations imposed by the Act on the parties involved are primarily on the CEO of Customs. According to section 269SD(2), the CEO must revoke the TCO if satisfied that the tariff classification no longer applies to the goods. Additionally, the CEO is required to make a new TCO that correctly reflects the goods' tariff classification. This process ensures that the appropriate duty rates are applied to imported goods based on their current classification. The CEO's role is critical in maintaining the accuracy and effectiveness of the tariff concession scheme.
Under the Customs Act 1901, breaches of the provisions related to TCOs could result in various penalties. Although specific offences and penalties are not detailed in the explanatory statement for this particular revocation, general provisions within the Act suggest that non-compliance with customs regulations can lead to civil and criminal consequences. Civil penalties might include fines or financial penalties imposed by Customs, while criminal penalties could involve imprisonment, reflecting the seriousness of non-compliance with customs laws. The exact penalties depend on the nature and severity of the breach, as outlined in other sections of the Customs Act.