EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 7/2009
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 7/2009 was made on 23 October 2008. It revokes TCO 0817917 and makes TCO 0836013. The tariff classification has been changed from 8419.81.10 to 8419.81.90 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. 7/2009 revoked 0817917 and made new TCO 0836013 on 23 October 2008, with the Revocation date of effect as from 14 July 2008.
Overview
The Tariff Concessions Revocation Instrument 7/2009 was enacted to address a specific issue arising from the Customs Act 1901, particularly concerning the revocation and replacement of Tariff Concession Orders (TCOs) due to changes in tariff classifications. This instrument was issued by the Chief Executive Officer of Customs (CEO) in accordance with sections 269C, 269P, and 269SD of the Customs Act. The primary objective of the Instrument is to ensure that the tariff classifications stated in TCOs accurately reflect current tariff arrangements, particularly in response to amendments in the Customs Tariff Act 1995 or decisions of the Administrative Appeals Tribunal. The Instrument revokes TCO 0817917 and introduces a new TCO, 0836013, effective from 14 July 2008, following a change in tariff classification from 8419.81.10 to 8419.81.90. This change was deemed necessary to maintain the integrity of the tariff concession scheme as per the Customs Act.
Scope and Application
The Tariff Concessions Revocation Instrument 7/2009, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Order (TCO) 0817917 and the establishment of a new TCO, 0836013. This instrument applies to goods previously covered by TCO 0817917, which now fall under a different tariff classification due to an amendment in the Customs Tariff Act 1995. The application of this instrument extends to any person or entity dealing with the specified goods, ensuring they are aware of the revised tariff concessions. The geographic scope of this instrument is national, affecting all territories under the Commonwealth of Australia. There are no specific exclusions or exemptions noted in this instrument, though its application may be subject to further clarification or restriction through subordinate instruments. The commencement of the revocation and the new TCO is effective from the day the tariff classification change took effect, as per the provisions of the Customs Act.
Key Provisions
The main sections of the Tariff Concessions Revocation Instrument No. 7/2009 (hereafter referred to as the Instrument) under the Customs Act 1901 require the revocation of Tariff Concession Order (TCO) 0817917 and the creation of a new TCO, 0836013 (subsection 269SD(2)). This action was taken because the tariff classification for certain goods changed, necessitating an update to the applicable customs duty rates. This change in tariff classification was due to an amendment in the Customs Tariff Act 1995, as outlined in the explanatory statement. The Instrument was made on 23 October 2008 and has a revocation date of 14 July 2008, the day from which the new tariff classification became effective.
The Instrument imposes specific obligations on the Chief Executive Officer of Customs (CEO), who is responsible for making the order to revoke and create the new TCO. According to subsection 269SD(2) of the Customs Act, the CEO must revoke the existing TCO and issue a new one if they are satisfied that the tariff classification stated in the TCO no longer applies due to changes in the Customs Tariff Act, a decision by a court or the Administrative Appeals Tribunal, or advice from a Customs officer. The CEO is also required to ensure that the new TCO is made with effect from the date of revocation of the old TCO. These obligations are critical to maintaining the accuracy and effectiveness of the tariff concessions provided under the Customs Act.
Failure to comply with the provisions of the Customs Act and the Tariff Concessions Revocation Instrument No. 7/2009 may result in various civil and criminal consequences. Although specific offences and penalties are not detailed in the explanatory statement, breaches of the Customs Act can generally result in substantial fines and potential imprisonment. The exact penalties would depend on the nature and severity of the breach, as outlined in other sections of the Customs Act. For instance, subsection 269SD(6) highlights that section 269SD has effect despite section 12 of the Legislative Instruments Act 2003, which prohibits the making of certain retrospective legislative instruments, ensuring that the CEO’s actions are legally sound and justifiable under the Act.
In summary, the Tariff Concessions Revocation Instrument No. 7/2009 revokes TCO 0817917 and establishes TCO 0836013, reflecting the updated tariff classification necessitated by changes in the Customs Tariff Act 1995. This action was taken to ensure that the applicable customs duty rates remain accurate and effective. The CEO is obligated to make these changes under subsection 269SD(2) of the Customs Act, and failure to comply with the Act’s provisions could result in significant civil or criminal penalties, depending on the specifics of the breach.