EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 71/2006
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 71/2006 was made on 16 August 2006. It revokes TCO 0611750 and makes TCO 0613491. The tariff classification has been changed from 3926.90.90 to 5903.10.90 because 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. 71/2006 revoked 0611750 and made new TCO 0613491 on 16 August 2006.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, established a framework for the regulation of customs duties. One of its provisions includes the ability to issue and revoke Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, to provide reduced customs duty rates for certain goods. This was done to ensure that Australian businesses are not disadvantaged by the lack of domestic production of certain goods. The Tariff Concessions Revocation Instrument 71/2006 was introduced to address the need to adjust tariff classifications in response to amendments in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from Customs officers. This legislative instrument revokes an existing TCO and establishes a new one to reflect the updated tariff classification, ensuring that the customs duty rates remain consistent with the current tariff schedule. The instrument was enacted on 16 August 2006, with the revocation and new TCO taking effect from the day the previous tariff classification ceased to apply to the goods in question.
Scope and Application
The Tariff Concessions Revocation Instrument 71/2006, made under the Customs Act 1901, pertains to the revocation and creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument specifically revokes TCO 0611750 and introduces TCO 0613491, reflecting a change in tariff classification from 3926.90.90 to 5903.10.90, which was necessitated by a change in the Customs Tariff Act 1995. The revocation and new order apply from the day the tariff classification no longer applied to the goods, ensuring that the new order takes effect from the date of revocation. This instrument operates under the authority granted by sections 269C, 269P, and 269SD of the Customs Act, and it is designed to ensure that the tariff concessions remain aligned with the current tariff classifications. The changes implemented by this instrument are considered minor and of a machinery nature, hence no consultation was undertaken prior to its enactment. The commencement of the order is governed by subsection 269SD(2), with the effective date being either the day the original TCO came into force or a later specified date, and it operates despite certain prohibitions on retrospective legislative instruments as outlined in the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 71/2006, under the Customs Act 1901, primarily focuses on the revocation and replacement of Tariff Concession Orders (TCOs) (s 269C, s 269P, s 269SD). Specifically, it revokes TCO 0611750 and introduces TCO 0613491. This change occurs because of an amendment to the tariff classification, shifting from 3926.90.90 to 5903.10.90. This instrument was enacted on 16 August 2006, and the changes have effect from the same date.
The obligations imposed by the Act on the Chief Executive Officer of Customs (CEO) and relevant entities include ensuring that TCOs are made only when specific criteria are met, such as no substitutable goods being produced in Australia (s 269C, s 269P). Additionally, the CEO must promptly revoke a TCO if the tariff classification changes or is invalidated by a court decision or Customs advice (s 269SD(2)). The CEO must also make a new TCO reflecting the correct tariff classification to maintain compliance with the Customs Act 1901.
The consequences for non-compliance with the provisions of the Tariff Concessions Revocation Instrument 71/2006 are significant. While the explanatory statement does not detail specific offences or penalties, the Customs Act 1901 generally provides for a range of civil and criminal penalties for breaches related to customs duties and tariff concessions. These can include fines and imprisonment for serious offences, as well as financial penalties for less severe infractions. The exact penalties depend on the nature and severity of the breach.
Section 269SD(4) of the Customs Act 1901 stipulates that the revocation of a TCO and the implementation of a new TCO take effect from the day when the tariff classification no longer applies to the goods or a later date. This ensures that the transition is smooth and compliant with the legislative requirements. Furthermore, section 269SD(6) explicitly states that these provisions operate despite section 12 of the Legislative Instruments Act 2003, which otherwise prohibits certain retrospective legislative instruments. This means that the revocation and replacement of TCOs under this instrument are legally permissible even though they have retrospective effect.