EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 79/2007
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 79/2007 was made on 30 April 2007. It revokes TCO 0509427 and makes TCO 0703602. The tariff classification has been changed from 3925.90.00 to 3921.90.90 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. 79/2007 revoked 0509427 and made new TCO 0703602 on 30 April 2007.
Overview
The Tariff Concessions Revocation Instrument 79/2007 was enacted under the Customs Act 1901 to address the need for adjustments in tariff classifications for goods that benefit from tariff concession orders. This legislative instrument was developed to respond to changes in tariff classifications as mandated by the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or advice from Customs officers. The Tariff Concessions Revocation Instrument was introduced by the Chief Executive Officer of Customs (CEO), who is authorised under the Customs Act to make and revoke Tariff Concession Orders (TCOs). The policy objective of this instrument is to ensure that the customs duty rates applied to specific goods remain consistent with the current tariff classifications, thereby maintaining the integrity and effectiveness of the tariff concession scheme.
The instrument was enacted on 30 April 2007, revoking the existing TCO 0509427 and issuing a new TCO 0703602 due to a change in tariff classification from 3925.90.00 to 3921.90.90. The revocation and new issuance of the TCO were made effective from the day the old tariff classification ceased to apply to the goods. This legislative action was implemented without prior consultation as the changes were deemed minor and of a machinery nature, not substantially altering existing arrangements. The commencement of the new TCO follows the revocation and is governed by the provisions of the Customs Act, ensuring that the changes comply with the legislative framework, including the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 79/2007, under the Customs Act 1901, applies to entities and individuals engaged in the importation of goods that were previously subject to a Tariff Concession Order (TCO). Specifically, the instrument revokes TCO 0509427 and introduces a new TCO, 0703602, due to a change in tariff classification, affecting the customs duty rates on the relevant goods. This act operates within the Commonwealth jurisdiction, impacting trade practices across Australia by modifying the tariff classifications of imported goods. The changes are made by the Chief Executive Officer of Customs in accordance with the Act's stipulations regarding tariff concession orders. The instrument does not specify any exclusions, exemptions, or thresholds, and its application is directly tied to the specific tariff classification changes identified. The commencement of the revocation and the new TCO is effective from the date the previous tariff classification ceased to apply, aligning with the provisions outlined in subsection 269SD(2) and 269SD(4) of the Customs Act 1901.
Key Provisions
The Tariff Concessions Revocation Instrument 79/2007 (F2007L01410) operates under the Customs Act 1901, specifically within Part XVA, which details the process for making and revoking Tariff Concession Orders (TCOs). The instrument revokes the existing TCO 0509427 and establishes a new TCO 0703602, reflecting a change in tariff classification from 3925.90.00 to 3921.90.90, necessitated by an amendment to the Customs Tariff Act 1995. The revocation and new TCO took effect from 30 April 2007, the date the instrument was made, as stipulated in subsection 269SD(2) of the Customs Act 1901. This change was implemented without consultation, deemed unnecessary due to its minor and machinery nature, not altering existing arrangements significantly.
Under the Customs Act 1901, the Chief Executive Officer of Customs (CEO) is mandated to make a TCO if the application meets the core criteria, which primarily involves the absence of substitutable goods being produced in Australia on the day the application was lodged. The obligations imposed by the Tariff Concessions Revocation Instrument 79/2007 on parties governed by this legislation primarily revolve around compliance with the new tariff classification. Entities affected by the revocation and the imposition of the new TCO must ensure their goods are classified under the new tariff code, 3921.90.90, for customs duty purposes. This requirement is crucial for maintaining the integrity of the tariff concession scheme and ensuring that the benefits are correctly applied to eligible goods.
In terms of consequences for non-compliance or breaches of the provisions outlined in the Tariff Concessions Revocation Instrument 79/2007, the Customs Act 1901 provides for various penalties. While the explanatory statement does not detail specific penalties applicable to this instrument, general provisions within the Act outline potential civil and criminal penalties for non-compliance with customs regulations. These could include fines and, in severe cases, imprisonment, depending on the nature and severity of the breach. The exact penalties would be determined based on the specific circumstances of any non-compliance, guided by the broader legislative framework within which the Tariff Concessions Revocation Instrument operates.