EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 69/2008
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 69/2008 was made on 9 July 2008. It revokes TCO 0721697 and makes TCO’s 0816641 and 0816635. The tariff classification has been changed from 3924.90.00 to 3925.90.00 and 3924.90.00 because of a tariff classification changes.
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. 69/2008 revoked 0721697 and made new TCO’s 0816641 and 0816635 on 9 July 2008, with the Revocation date of effect as from 17 December 2007
Overview
The Tariff Concessions Revocation Instrument 69/2008, enacted on 9 July 2008, amends the Customs Act 1901 by revoking Tariff Concession Order (TCO) 0721697 and issuing new TCOs 0816641 and 0816635, effective from 17 December 2007. This instrument addresses the need to adjust tariff classifications in response to changes in the Customs Tariff Act 1995. The Customs Act 1901, enacted by the Australian Parliament, provides the framework for customs duties and tariff concessions, enabling the Chief Executive Officer of Customs to manage and revoke TCOs as necessary. The policy objective is to ensure that the correct tariff classifications are applied to goods entering Australia, thereby maintaining consistency and fairness in the application of customs duties.
The Instrument was created under the authority of the Customs Act 1901, with no consultation required due to the minor and machinery nature of the changes. The commencement provisions ensure that the revocation and new TCOs take effect from the date the tariff classification ceased to apply, aligning with the legislative intent to avoid retrospective changes as prohibited by the Legislative Instruments Act 2003.
Scope and Application
The Customs Act 1901, specifically under Part XVA, governs the making and revoking of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This Act applies to entities and individuals who are subject to customs duties on imported goods, particularly those benefiting from lower rates due to a TCO. The geographic reach of the Act is national, as it is a Commonwealth Act. The scope of this legislation extends to all industries and types of goods that may be subject to customs tariffs, provided they meet the criteria for tariff concessions. The application of the Act is further defined and detailed through subordinate instruments, such as the Tariff Concessions Revocation Instrument No 69/2008, which revokes specific TCOs and establishes new ones based on changes in tariff classifications. The revocation instrument was enacted without consultation due to its minor nature and did not substantially alter existing arrangements. The commencement of the revocation order aligns with the day when the tariff classification no longer applied to the goods, with the new TCOs taking effect from the day of revocation.
Key Provisions
The Tariff Concessions Revocation Instrument 69/2008 operates under sections 269C and 269P of the Customs Act 1901, which empower the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders (TCOs) (ss 269C, 269P). This instrument specifically revokes TCO 0721697 and replaces it with TCOs 0816641 and 0816635, reflecting changes in tariff classifications due to amendments in the Customs Tariff Act 1995 (s 269SD(2)). The changes to tariff classifications are from 3924.90.00 to 3925.90.00 and 3924.90.00, respectively, as a result of these amendments.
The obligations imposed on the parties governed by this Act include ensuring that any goods subject to a TCO comply with the current tariff classifications stipulated in the relevant TCO. This involves the Chief Executive Officer of Customs making an order to revoke a TCO when it is determined that the tariff classification stated in the TCO no longer applies to the goods, and subsequently issuing a new TCO with the updated classification (s 269SD(2)). The revocation of TCO 0721697 and the creation of TCOs 0816641 and 0816635 illustrate these obligations in practice.
Breaches of the provisions under the Customs Act 1901 can result in civil and criminal penalties. For instance, non-compliance with the tariff classification as per the TCOs can lead to fines and potential legal action. The maximum penalties for breaches related to customs duties and related offences are outlined in the Customs Act and may include substantial fines and imprisonment. The exact penalties depend on the specific breach and the severity of the non-compliance, but they are intended to ensure adherence to the tariff regulations and the integrity of the customs system.
The Tariff Concessions Revocation Instrument 69/2008 came into effect from the revocation date of 17 December 2007, with the new TCOs effective from the revocation (s 269SD(4), (6)). This ensures that there is a seamless transition in tariff classifications, with no legal or administrative gaps. The commencement of these changes highlights the importance of timely updates to the TCOs to reflect accurate tariff classifications and maintain the effectiveness of the customs duty scheme.