EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 70/2008
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.
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.
Vinidex Pty Ltd requested that the CEO revoke TCO 0608336 which covers piping and/or tubing fittings.
Instrument
Tariff Concessions Revocation Instrument No 70/2008 was made on 9 July 2008. It revokes TCO 0608336 as the CEO is satisfied that Vinidex 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Tariff Concessions Revocation Instrument No.70/2008, TCO 0608336, was revoked on 9 July 2008 with the Revocation date of effect as from 23 May 2008.
Overview
The Tariff Concessions Revocation Instrument 70/2008 was enacted to address the issue of tariff concessions that may have been incorrectly applied to certain goods where substitutable goods are now produced in Australia. This instrument, which revokes Tariff Concession Order (TCO) 0608336, was made under the Customs Act 1901 by the Chief Executive Officer of Customs. The revocation of this specific TCO was necessitated by a request from Vinidex Pty Ltd, a producer of substitutable goods, who demonstrated that the tariff concession was no longer justified as the conditions for its application had changed. The policy objective behind this revocation aligns with ensuring that tariff concessions are only granted when necessary, thus maintaining a fair and competitive market for Australian producers.
Scope and Application
The Tariff Concessions Revocation Instrument 70/2008 applies to the revocation of Tariff Concession Order (TCO) 0608336, which concerns piping and/or tubing fittings. This instrument operates under the Customs Act 1901, specifically targeting the process whereby the Chief Executive Officer of Customs revokes a TCO. The Act applies to any person or entity that has lodged a request for the revocation of a TCO, particularly those claiming to produce substitutable goods in Australia. The geographic reach of this Act is national, as it involves the Customs Act 1901, which is a Commonwealth legislation. The revocation of TCO 0608336 is effective from the date the request to revoke was lodged, demonstrating the instrument's immediate application. There are no stated exclusions or exemptions in this particular revocation; however, the Act includes provisions for consultation, requiring the CEO to publish details of the revocation request in a Gazette. The revocation takes effect despite certain legislative restrictions on retrospective instruments, underscoring the specific application of the Customs Act in this context.
Key Provisions
The Tariff Concessions Revocation Instrument 70/2008 (Instrument 70/2008) revokes Tariff Concession Order (TCO) 0608336, which provided for lower customs duty rates on certain piping and/or tubing fittings. This revocation took effect on 9 July 2008, but with a retroactive date of 23 May 2008. This revocation was executed under sections 269C, 269P, 269SB, and 269SC of the Customs Act 1901, where the Chief Executive Officer (CEO) of Customs made the decision based on the application by Vinidex Pty Ltd and the CEO's satisfaction that on the date of the request, Vinidex Pty Ltd was a producer of substitutable goods in Australia, and that the TCO would not have been issued had it been the application date for the TCO.
Under this Act, the CEO has a responsibility to ensure that the TCOs made comply with the legislative requirements, especially the condition that no substitutable goods are produced in Australia at the time of the application for a TCO. Furthermore, the CEO must publish a notice in a Gazette as soon as practicable after receiving a request for revocation of a TCO. This notice must include a statement that a request has been lodged and the full particulars of the TCO to which the request relates, as stipulated in subsection 269SC(1A) of the Act.
In terms of breaches and consequences, the Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breach in relation to the revocation of TCOs. However, any misuse of the tariff concession scheme or non-compliance with the Act's requirements could potentially lead to legal actions or administrative penalties. The CEO, as the enforcing authority, has the responsibility to ensure compliance with the Act and can take appropriate action against any non-compliance. It's important to note that the specifics of any penalties or consequences would depend on the nature and severity of the breach.