EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 72/2011
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.
Filter-Tex Media Pty Ltd requested that the CEO revoke TCO 0941860 which covers filter bags.
Instrument
Tariff Concessions Revocation Instrument No 72/2011 was made on 29 September 2010. It revokes TCO 0941860 as the CEO is satisfied that Filter-Tex Media 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Tariff Concessions Revocation Instrument No.72/2011, TCO 0941860, was revoked on 29 September 2010 with the Revocation date of effect as from 4 August 2010.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework within which Tariff Concession Orders (TCOs) can be made and subsequently revoked by the Chief Executive Officer of Customs. This legislation was introduced to address the need for flexible tariff arrangements that can adapt to changes in domestic production capabilities, ensuring that Australian industries are not disadvantaged by overly generous concessions when local alternatives become available. The Tariff Concessions Revocation Instrument 72/2011, issued on 29 September 2010, revokes TCO 0941860 at the request of Filter-Tex Media Pty Ltd, following a determination by the CEO that the company is a producer of substitutable goods in relation to filter bags, and that the concession would not have been granted had the current circumstances been known at the time of application. This revocation reflects the policy objective of maintaining fair competition within the Australian market by adjusting tariff concessions in response to changes in domestic production.
Scope and Application
The Tariff Concessions Revocation Instrument 72/2011 operates under the Customs Act 1901, specifically addressing the revocation of Tariff Concession Orders (TCOs) that are established to apply lower rates of customs duty on certain goods. This instrument applies to any entity or individual who has requested the revocation of a TCO on the basis that they are a producer in Australia of goods that are substitutable to the goods covered by the TCO. The scope of the legislation is determined by the Chief Executive Officer of Customs (CEO) who must be satisfied with the substitutability of the goods and that the TCO would not have been issued had the request for revocation been made on the date the initial TCO application was lodged. The revocation is geographically confined to Australia and operates within the federal jurisdiction. It is important to note that the revocation does not extend to any other legislative instruments and is specifically tailored to the revocation of TCOs as outlined in the Customs Act 1901. The instrument becomes effective on the date the revocation request is lodged, and it supersedes any conflicting retrospective legislative provisions.
Key Provisions
The Tariff Concessions Revocation Instrument 72/2011, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0941860, which applied to filter bags. The revocation is effective from 4 August 2010, the date the request for revocation was lodged (section 269SC(6)). This revocation was initiated due to Filter-Tex Media Pty Ltd's application, claiming to be a producer of substitutable goods in Australia (section 269SB). The Chief Executive Officer of Customs (CEO) found that Filter-Tex Media Pty Ltd is indeed a producer of such goods and that if the TCO had not been in effect from the day the initial application was lodged, it would not have been made (subsections 269SC(1) and (3)).
Under the Customs Act 1901, the CEO is required to publish a notice in the Gazette as soon as practicable after receiving a request for the revocation of a TCO (subsection 269SC(1A)). This notice must include a statement confirming the request for revocation and the full details of the TCO in question. This ensures transparency and allows the public to be informed about the revocation process. The CEO's decision to revoke TCO 0941860 was based on satisfying the two criteria set out in the Act, thereby fulfilling these obligations.
The Customs Act 1901 does not explicitly state offences, penalties, or civil/criminal consequences for the breach of its provisions related to TCOs. However, it is implied that any failure to comply with the requirements or obligations set out in the Act could result in legal consequences. Given that the revocation of TCO 0941860 was made in accordance with the Act's provisions, no penalties are applicable in this instance. However, any party that does not comply with the Act's requirements could potentially face legal action, including fines or other civil or criminal penalties, depending on the nature and severity of the breach.