EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 78/2006
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 78/2006 was made on 16 August 2006. It revokes TCO 0607139 and makes TCO 0609734 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.78/2006 revoked 0607139 and made new TCO 0609734 on 16 August 2006.
Overview
The Tariff Concessions Revocation Instrument 78/2006, enacted on 16 August 2006, is a legislative instrument under the Customs Act 1901, designed to address discrepancies arising from transcription errors in Tariff Concession Orders (TCOs). This instrument was introduced by the Chief Executive Officer of Customs (CEO) in accordance with the authority granted under sections 269C, 269P, and 269SD of the Act. The primary objective is to rectify errors that may affect the tariff classification and the application of lower customs duty rates to specific goods. By revoking the erroneous TCO 0607139 and issuing a corrected TCO 0609734, the instrument ensures the integrity and accuracy of the tariff concessions scheme. The revocation and reissuance of the TCOs are effective from the date the original TCO came into force, as stipulated in subsection 269SD(3) of the Act, thereby maintaining the intended policy without substantial alteration to existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 78/2006 is an instrument under the Customs Act 1901, which allows the Chief Executive Officer of Customs to revoke and make Tariff Concession Orders (TCOs) that affect the application of customs duty rates. The Instrument specifically revokes TCO 0607139 and introduces TCO 0609734 due to a transcription error identified in the original TCO. This instrument applies to goods that were subject to the erroneous TCO, and its purpose is to correct the mistake and ensure the accurate application of tariff concessions. The instrument operates within the Commonwealth jurisdiction, as it is an instrument under the Customs Act 1901, which is a Commonwealth Act. The revocation and creation of new TCOs have effect from the day the original TCO came into force, and the instrument operates despite certain prohibitions on retrospective legislative instruments. The instrument does not provide for any exclusions, exemptions, or thresholds and its application is limited to the specific TCOs mentioned in the Instrument. The instrument does not extend or restrict application through subordinate instruments.
Key Provisions
The Tariff Concessions Revocation Instrument 78/2006 under the Customs Act 1901 introduces significant changes to the tariff concessions applicable to certain goods. Specifically, it revokes Tariff Concession Order (TCO) 0607139 and replaces it with TCO 0609734. This change was made due to a transcription error identified in the original TCO (section 269SD(2)). The new TCO aims to correct this error, ensuring that the correct goods and tariff classification are reflected in the order.
Under this legislation, the Chief Executive Officer of Customs (CEO) is empowered to make and revoke TCOs based on certain criteria, primarily ensuring that no substitutable goods are produced in Australia on the day the application for the TCO is lodged (sections 269C and 269P). The CEO can revoke an existing TCO and issue a new one if there is a transcription error in the description of the goods or their tariff classification (section 269SD(2)). This ensures that the concessions are correctly applied and that the intended benefits reach the appropriate goods.
The obligations imposed by this Act on the parties and entities it governs include ensuring that any applications for tariff concessions are accurate and complete. The CEO must diligently review these applications and correct any transcription errors to maintain the integrity of the tariff concession scheme. Importers and exporters must also ensure that they are aware of and comply with the correct tariff concessions applicable to their goods.
The consequences for non-compliance or breaches of the tariff concessions scheme can be significant. While the explanatory statement does not detail specific offences or penalties, it is reasonable to infer that breaches of tariff laws can lead to substantial financial penalties. Under the Customs Act, penalties for incorrect declarations or non-compliance with tariff laws can include fines and, in severe cases, criminal charges. The maximum penalties for such offences can vary but can be substantial, reflecting the importance of accurate tariff classification and compliance.