EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 72/2007
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 72/2007 was made on 26 April 2007. It revokes TCO 0619303 and makes TCO 0703470. The tariff classification has been changed from 3923.50.00 to 3926.90.90 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. 72/2007 revoked 0619303 and made new TCO 0703470 on 26 April 2007.
Overview
The Customs Act 1901 provides a framework for the administration of customs and excise duties and includes provisions for the creation and revocation of Tariff Concession Orders (TCOs). Enacted by the Australian Parliament, the Customs Act 1901 aims to facilitate trade by allowing for tariff concessions on specific goods, provided certain criteria are met. This Act addresses the need for flexibility in customs duties to support international trade and domestic industry competitiveness. The Tariff Concessions Revocation Instrument 72/2007, issued under the authority of the Customs Act 1901, was introduced to adjust tariff classifications in response to changes in the Customs Tariff Act 1995, ensuring that the tariff concessions remain accurate and applicable to the correct goods. This instrument revokes TCO 0619303 and establishes a new TCO 0703470 to reflect updated tariff classifications, demonstrating the legislative intent to maintain the integrity and effectiveness of the tariff concession scheme.
Scope and Application
The Customs Act 1901 governs the imposition and collection of customs duty, and includes provisions for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. Specifically, Part XVA of the Act outlines the conditions under which TCOs may be made or revoked, with a key criterion being the absence of substitutable goods produced in Australia at the time the application is lodged. The Tariff Concessions Revocation Instrument 72/2007 revokes TCO 0619303 and establishes TCO 0703470, reflecting a change in tariff classification from 3923.50.00 to 3926.90. This change is in response to amendments in the Customs Tariff Act 1995. The revocation and creation of these TCOs apply to goods that were subject to the previous tariff concession, ensuring that the new tariff classification is correctly applied from the day the old TCO ceased to apply. The instrument was made without consultation due to its minor and machinery nature, and it took effect from the day the tariff classification change came into force.
Key Provisions
The Tariff Concessions Revocation Instrument 72/2007, made under sections 269C and 269P of the Customs Act 1901, revokes Tariff Concession Order (TCO) 0619303 and introduces a new TCO, 0703470. This instrument was enacted to adjust the tariff classification of certain goods due to a change in the Customs Tariff Act 1995, ensuring the correct rate of customs duty is applied. The revised classification from 3923.50.00 to 3926.90.90 is a direct result of this change, and the new TCO aims to reflect this updated classification accurately. The instrument was issued on 26 April 2007, and the new TCO takes effect from the day of revocation of the old TCO, ensuring a seamless transition in tariff application.
The obligations under this instrument require the Chief Executive Officer of Customs (CEO) to ensure that the new tariff classification is correctly applied to the affected goods. This involves making a new TCO that accurately reflects the updated tariff classification, thereby maintaining compliance with the Customs Act 1901. The CEO must also ensure that all stakeholders are informed about the changes to avoid any confusion or non-compliance with the new tariff rates. The CEO must verify that the new TCO meets the core criteria outlined in the Customs Act, specifically ensuring that no substitutable goods are produced in Australia in the ordinary course of business on the day the application was lodged.
Failure to comply with the provisions of the Tariff Concessions Revocation Instrument 72/2007 may result in breaches of the Customs Act 1901. While specific penalties are not detailed in the explanatory statement, breaches of the Customs Act can lead to significant legal consequences, including fines and potential criminal charges. The severity of the penalty would depend on the nature and extent of the breach, but the Act provides for both civil and criminal sanctions to enforce compliance. Importers, exporters, and other affected parties must ensure they adhere to the new TCO to avoid any adverse legal consequences.