EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 74/2007
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 74/2007 was made on 30 April 2007. It revokes TCO 0614396 and makes TCO 0704546. The tariff classification has been changed from 8519.89.90 to 8519.81.90 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. 74/2007 revoked 0614396 and made new TCO 0704546 on 30 April 2007.
Overview
The Tariff Concessions Revocation Instrument 74/2007 was enacted in 2007 under the Customs Act 1901 to address a specific issue concerning the revocation and replacement of Tariff Concession Orders (TCOs). The Customs Act 1901, enacted by the Australian Parliament, provides for the regulation of customs duties and includes provisions for the making and revocation of TCOs, which lower the rate of customs duty on certain goods. This instrument was introduced to ensure that TCOs accurately reflect current tariff classifications, particularly in response to changes in the Customs Tariff Act 1995 or decisions by courts and tribunals. The instrument was made by the Chief Executive Officer of Customs, who must revoke a TCO if the tariff classification for the goods changes, as stipulated in the Act. The objective of this instrument is to maintain the integrity of the tariff concession scheme by ensuring that the duty rates on goods remain correctly aligned with the prevailing tariff classifications.
Scope and Application
The Tariff Concessions Revocation Instrument 74/2007, made under the Customs Act 1901, applies to goods previously covered under Tariff Concession Order (TCO) 0614396, which is revoked by this instrument. The instrument is enacted to correct the tariff classification of certain goods due to changes in the Customs Tariff Act 1995. The revocation and the subsequent creation of TCO 0704546 ensure that the appropriate lower rate of customs duty continues to apply to these goods in accordance with the amended tariff classification. The instrument has a national reach, as it pertains to the Commonwealth of Australia and affects all entities importing goods that were previously subject to TCO 0614396. No consultation was necessary for this minor, machinery change, which does not substantially alter existing arrangements. The revocation and creation of new TCO have effect from the date on which the tariff classification change took effect, in compliance with subsection 269SD(2) of the Customs Act 1901. This instrument demonstrates the dynamic nature of tariff regulation under Australian customs law, ensuring that tariff concessions remain aligned with current tariff classifications.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument No. 74/2007, made under the Customs Act 1901, are sections 269C, 269P, and 269SD. Section 269C allows the Chief Executive Officer of Customs (CEO) to make Tariff Concession Orders (TCOs) if the application meets the core criteria, meaning no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. Section 269P provides for the revocation of TCOs if certain conditions are met, such as an amendment of the Customs Tariff Act 1995 or a court decision. Section 269SD(2) mandates the CEO to revoke a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods, and to issue a new TCO from the day of the revocation.
The Act imposes specific obligations on the CEO to assess applications for TCOs, ensure they meet the criteria set out in the Act, and revoke any TCO if the tariff classification changes. The CEO must also make new TCOs with updated classifications to reflect any changes in the tariff classification. Additionally, the CEO must ensure that the new TCOs are made effective from the day the tariff classification no longer applies to the goods, which may be the same day the old TCO came into force or a later date.
Failure to comply with the provisions of the Customs Act 1901 and the Tariff Concessions Revocation Instrument No. 74/2007 can result in civil or criminal penalties. Although specific penalties are not detailed in the explanatory statement, breaches of the Customs Act 1901 generally carry significant financial penalties and potential imprisonment. For instance, the Act provides for fines and imprisonment for offences such as failing to comply with a notice, providing false information, or engaging in other prohibited activities related to customs duties and tariffs. The exact penalties depend on the nature and severity of the breach.