EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 78/2007
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 78/2007 was made on 30 April 2007. It revokes TCO 0614407 and makes TCO 0704550. 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. 78/2007 revoked 0614407 and made new TCO 0704550 on 30 April 2007.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, provides for the regulation and management of customs duties and related matters. Part XVA of the Act specifically deals with the scheme for Tariff Concession Orders (TCOs), which allow for lower customs duty rates for certain goods. To address the issue of updating tariff classifications and ensuring that the concessions align with current tariff regulations, the Tariff Concessions Revocation Instrument 78/2007 was introduced. This instrument was made on 30 April 2007, revoking TCO 0614407 and establishing TCO 0704550 due to a change in tariff classification. The objective is to maintain the integrity of the tariff concession scheme by ensuring that the applicable tariff classifications for goods subject to TCOs are up-to-date and consistent with the prevailing tariff regulations.
Scope and Application
The Tariff Concessions Revocation Instrument 78/2007 is a legislative instrument made under the Customs Act 1901, which pertains specifically to the revocation of a Tariff Concession Order (TCO). This instrument is applicable to the goods specified within the revoked TCO 0614407 and the newly established TCO 0704550. The changes in tariff classification from 8519.89.90 to 8519.81.90 were triggered by an amendment in the Customs Tariff Act 1995. The instrument, which was enacted on 30 April 2007, affects the customs duty rates applied to the specified goods by revoking the previous tariff concession and introducing a new one effective from the revocation date. The new TCO applies to entities and individuals involved in the import or export of the affected goods, ensuring they adhere to the updated tariff classifications. The geographic scope of this instrument is national, as it operates under the federal customs regime of Australia. There were no exclusions or exemptions specified in the instrument, and no consultation was necessary due to the minor nature of the changes. The commencement of the revocation and new TCO is governed by subsections 269SD(2) and 269SD(4) of the Customs Act 1901, ensuring the changes take effect from the date the old tariff classification ceased to apply to the goods.
Key Provisions
The Tariff Concessions Revocation Instrument 78/2007 (sections 269C, 269P, and 269SD) revokes Tariff Concession Order (TCO) 0614407 and establishes a new TCO 0704550. This instrument was necessitated by a change in tariff classification, which altered the application of customs duty rates on specific goods. The revocation and establishment of the new TCO ensure that the appropriate tariff classification is applied to the goods moving forward.
The obligations under this instrument require the Chief Executive Officer of Customs (CEO) to monitor tariff classifications and make adjustments when necessary. The CEO must revoke an existing TCO if a change in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer indicates that the tariff classification no longer applies to the goods. Additionally, the CEO must create a new TCO to reflect the updated tariff classification. This process ensures that the correct duty rates are applied, which is crucial for compliance with customs regulations.
Failure to comply with the provisions of this instrument could result in legal consequences. The Customs Act 1901 imposes penalties for non-compliance with tariff regulations. These penalties can include financial penalties and potential criminal charges if the non-compliance is deemed to be deliberate or negligent. The exact penalties are determined based on the severity and intent of the breach.
The revocation of TCO 0614407 and the introduction of TCO 0704550 took effect from the date of the instrument's creation, 30 April 2007. This was due to the change in tariff classification, which necessitated an immediate adjustment to the applicable duty rates on the specified goods. The instrument ensures that the new TCO is effective from the revocation date, thereby maintaining the integrity of the tariff system and ensuring that the correct duties are charged.