EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 72/2006
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 72/2006 was made on 16 August 2006. It revokes TCO 9801038 and makes TCO 0613442. The tariff classification has been changed from 8515.39.00 to 8515.90.00 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. 72/2006 revoked 9801038 and made new TCO 0613442 on 16 August 2006.
Overview
The Customs Act 1901, enacted by the Parliament of Australia, provides a framework for the administration of customs and excise in Australia, including the ability to make and revoke Tariff Concession Orders (TCOs). The Tariff Concessions Revocation Instrument 72/2006, made under the authority of the Customs Act 1901, was introduced to address the issue of tariff classification changes that affect the applicability of TCOs. Specifically, this instrument was enacted to revoke TCO 9801038 and establish TCO 0613442 in response to a change in tariff classification from 8515.39.00 to 8515.90.00. The instrument was issued by the Chief Executive Officer of Customs, ensuring that the new tariff classification is correctly applied to the affected goods. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the correct tariff classifications are applied to goods, thereby preventing any misuse or inequity in the application of customs duties.
Scope and Application
The Tariff Concessions Revocation Instrument 72/2006 operates under the Customs Act 1901, which is applicable at the Commonwealth level across Australia. This specific instrument targets Tariff Concession Orders (TCOs), which are designed to provide lower rates of customs duty on certain goods. The revocation of TCO 9801038 and the creation of TCO 0613442 pertain to changes in tariff classifications, ensuring that the goods subject to these orders are correctly classified under the Customs Tariff Act 1995. The Chief Executive Officer of Customs has the authority to make and revoke these orders based on specified criteria, such as the production of substitutable goods in Australia or changes in tariff classifications. The revocation and subsequent creation of a new TCO is effective from the day the tariff classification change took effect, and this process is authorised by subsection 269SD(2) of the Customs Act, ensuring compliance with the legislative requirements. Notably, this instrument does not require consultation as the changes are of a minor or machinery nature, and it operates in accordance with the stipulated provisions despite potential restrictions under the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 72/2006 (sections 269C, 269P, 269SD) revokes Tariff Concession Order (TCO) 9801038 and establishes a new TCO 0613442. This instrument is made under the Customs Act 1901 and was issued on 16 August 2006. The main purpose of the instrument is to adjust the tariff classification for specific goods, which impacts the rate of customs duty applicable to them. The tariff classification has been updated from 8515.39.00 to 8515.90.00, reflecting a change in the classification due to an amendment in the Customs Tariff Act 1995 or a relevant decision of the Administrative Appeals Tribunal or written advice from an officer of Customs.
The Customs Act 1901 imposes several obligations on the Chief Executive Officer of Customs (CEO) regarding the management of TCOs. Under section 269SD(2), the CEO must revoke a TCO if they are satisfied that the tariff classification specified in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a decision of the Administrative Appeals Tribunal, or written advice from an officer of Customs. Additionally, the CEO is required to make a new TCO for the goods with effect from the date of the revocation. Section 269SD(4) allows the revocation to take effect from the date the old TCO came into force or a later date as specified. Importantly, section 269SD(6) ensures that the revocation and creation of new TCOs can occur despite the prohibition in section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.
Failure to comply with the provisions of the Customs Act 1901, including the obligations outlined in the Tariff Concessions Revocation Instrument 72/2006, can result in legal consequences. While the explanatory statement does not specify offences or penalties, breaches of the Customs Act can lead to various civil or criminal penalties, depending on the nature and severity of the breach. For instance, incorrect classification of goods can result in financial penalties, seizure of goods, or prosecution for customs fraud. The maximum penalties for customs-related offences can vary, but they often include substantial fines and, in some cases, imprisonment. The specific penalties depend on the particular circumstances of the breach and the discretion of the court.