EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 77/2007
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 77/2007 was made on 30 April 2007. It revokes TCO 0614405 and makes TCO 0704549. 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. 77/2007 revoked 0614405 and made new TCO 0704549 on 30 April 2007.
Overview
The Customs Act 1901, through Part XVA, established a framework for the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation was designed to address the need for flexible tariff structures that accommodate changes in production and tariff classifications without requiring amendments to the primary act. Enacted by the Australian Parliament, the Customs Act 1901 aims to streamline customs processes and ensure that tariff concessions are appropriately aligned with current economic conditions and tariff schedules. The Tariff Concessions Revocation Instrument 77/2007, made on 30 April 2007, revoked TCO 0614405 and introduced TCO 0704549 due to a change in tariff classification. This instrument was enacted to maintain the integrity of the tariff concession scheme in response to amendments in the Customs Tariff Act 1995, ensuring that the correct tariff rates continue to apply to affected goods.
Scope and Application
The Customs Act 1901, as supplemented by the Tariff Concessions Revocation Instrument 77/2007, applies to entities and individuals involved in the importation of goods subject to tariff concessions, specifically those that were previously covered under Tariff Concession Order (TCO) 0614405. The Act regulates the application and revocation of tariff concessions by the Chief Executive Officer of Customs (CEO), who is empowered to alter these concessions based on changes in tariff classifications, court decisions, or written advice from Customs officers. The Act's jurisdiction covers the entire Commonwealth of Australia and it applies to the conduct of importing goods and the transactions involved in such imports. The revocation of TCO 0614405 and the introduction of TCO 0704549 reflect a shift in tariff classification due to an amendment in the Customs Tariff Act 1995, and the changes are effective from the date when the previous tariff classification ceased to apply to the goods in question. There are no stated exclusions or exemptions in this particular revocation, and the instrument does not extend or restrict the application of the Customs Act beyond its stated purpose.
Key Provisions
The Tariff Concessions Revocation Instrument 77/2007 operates under sections 269C and 269P of the Customs Act 1901, allowing the Chief Executive Officer of Customs to revoke and re-issue Tariff Concession Orders (TCOs) when specific conditions are met. According to section 269C, a TCO is issued if the application demonstrates that, at the time of application, no substitutable goods were produced in Australia. Section 269P further outlines the circumstances under which a TCO can be revoked, specifically when the tariff classification for the goods changes due to an amendment in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. In such cases, the CEO is required to revoke the existing TCO and issue a new one with the updated classification, as mandated by section 269SD(2).
Under this legislation, the CEO of Customs has the responsibility to monitor tariff classifications and ensure they remain accurate in light of changes in legislation, court decisions, or official advice. If a discrepancy is identified, the CEO must act promptly to revoke the existing TCO and issue a new one reflecting the correct tariff classification. This ongoing duty ensures that the customs duties applied to imported goods remain consistent with the latest regulatory standards.
Failure to comply with the requirements set out in the Tariff Concessions Revocation Instrument 77/2007 could potentially result in legal consequences. Although the explanatory statement does not explicitly outline specific penalties for non-compliance, breaches of customs regulations generally carry significant civil and criminal penalties. For example, under section 287 of the Customs Act 1901, a person found guilty of an offence related to the contravention of customs provisions can face fines up to 10,000 penalty units or imprisonment for up to five years, or both, for individual offences. For corporate entities, the fines can be even higher, up to 50,000 penalty units or more, depending on the severity and intent of the breach. Additionally, persistent or severe breaches could lead to further enforcement actions by Customs, including the imposition of additional duties or even seizure of the non-compliant goods.