EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 76/2006
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, in making a TCO, there has been a transcription error in the description of goods the subject of the TCO including the tariff classification that is stated in the TCO to apply to the goods, the CEO may:
− make an order revoking the TCO; and
− make a new TCO in respect of goods that corrects the error.
Instrument
Tariff Concessions Revocation Instrument No 76/2006 was made on 16 August 2006. It revokes TCO 0605246 and makes TCO 0606891 because of a certain transcription error.
Consultation
No consultation was undertaken since the change is minor or machinery nature and does not substantially alter existing arrangements.
Commencement
Subsection 269SD(3) provides that the order revoking the TCO has effect from the day on which the TCO came into force and the new TCO has effect from the revocation of the old TCO.
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.76/2006 revoked 0605246 and made new TCO 0606891 on 16 August 2006.
Overview
The Tariff Concessions Revocation Instrument 76/2006, enacted on 16 August 2006, amends the Customs Act 1901 to address specific errors in the description of goods subject to a Tariff Concession Order (TCO). The instrument was introduced by the Commonwealth of Australia, enacted by the Parliament, and is aimed at correcting transcription errors in the classification of goods, ensuring that the correct tariff concessions are applied. The instrument revokes TCO 0605246 and issues a new TCO 0606891 to rectify these errors, with the changes taking effect from the original date of the TCO's commencement. This legislative action underscores the commitment to maintaining the integrity and accuracy of customs duties and concessions, thereby ensuring that the benefits are correctly applied without administrative oversights.
Scope and Application
The Tariff Concessions Revocation Instrument No. 76/2006 operates under the framework established by Part XVA of the Customs Act 1901, which facilitates the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This instrument specifically addresses a transcription error in the description of goods and their tariff classification, leading to the revocation of TCO 0605246 and the issuance of a corrected TCO 0606891. The application of the Act extends to any entity or individual involved in the import or export of goods that are subject to customs duty, and its scope is limited to rectifying errors in the tariff concessions granted. Geographically, the Act applies across Australia, as it falls under the Commonwealth's legislative jurisdiction. The instrument does not require consultation due to its minor and machinery nature, and it takes effect from the day of its creation, overriding any retrospective prohibitions under the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 76/2006 (F2006L02940) are sections 269C, 269P, and 269SD of the Customs Act 1901. Section 269C specifies the criteria for making a Tariff Concession Order (TCO), ensuring that the goods in question are not produced in Australia in the ordinary course of business on the day the application is lodged. Section 269P details the process for creating a TCO if the application meets the stipulated criteria. Section 269SD(2) allows the Chief Executive Officer of Customs (CEO) to revoke a TCO if there is a transcription error in the description or tariff classification of the goods, and to subsequently issue a corrected TCO.
Under this instrument, the CEO has the authority to revoke an existing TCO and issue a new one if a transcription error is identified. This is specifically addressed in section 269SD(2), which mandates that the CEO can make such an order if the error is discovered. The revocation and issuance of a new TCO must be carried out to correct any inaccuracies in the original TCO. Section 269SD(3) further clarifies that the revocation order takes effect from the date the original TCO came into force, while the new TCO is effective from the date of the revocation.
The Tariff Concessions Revocation Instrument 76/2006 imposes certain obligations on the CEO. The CEO must ensure that any TCOs made are accurate and correctly reflect the goods they pertain to. If an error is identified, the CEO must promptly revoke the erroneous TCO and issue a corrected one, as per section 269SD(2). Additionally, section 269SD(3) mandates that the revocation and new TCO take effect from specified dates, ensuring clarity and continuity in the application of tariff concessions.
The Act does not explicitly state offences, penalties, or consequences for breaches in this context. However, the importance of accuracy in the TCOs underscores the need for compliance. While the explanatory statement does not detail specific penalties, any failure to correct errors in a timely manner could potentially lead to non-compliance with the Customs Act 1901. This could result in legal ramifications, including potential administrative or financial penalties, as outlined in the broader framework of the Customs Act. The precision and accuracy of the TCOs are critical to maintaining the integrity of the tariff concession scheme.