EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 79/2011
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 79/2011 was made on 13 April 2011. It revokes TCO 0803407 and makes TCO 1110345. The tariff classification has been changed from 7612.90.00 to 7615.19.00 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. 79/2011 revoked 0803407 and made new TCO 1110345 on 13 April 2011, with the Revocation date of effect as from 25 February 2011.
Overview
The Tariff Concessions Revocation Instrument 79/2011, made under the Customs Act 1901, addresses the need to adjust tariff classifications that impact the application of tariff concession orders (TCOs). Enacted on 13 April 2011 by the Chief Executive Officer of Customs, this instrument revokes TCO 0803407 and introduces a new TCO 1110345, necessitated by a change in tariff classification from 7612.90.00 to 7615.19.00. The change, which was implemented to reflect updated tariff classifications, took effect from 25 February 2011. The policy objective of this instrument is to ensure that customs duty rates align with the correct tariff classifications, maintaining the integrity of the tariff concession scheme. The revocation and creation of new TCOs are governed by the provisions in the Customs Act 1901, which allow for such adjustments when the applicable tariff classifications change.
Scope and Application
The Tariff Concessions Revocation Instrument 79/2011 operates under the Customs Act 1901 and applies to the revocation of a Tariff Concession Order (TCO) and the subsequent creation of a new TCO in respect of certain goods. This instrument was issued by the Chief Executive Officer of Customs (CEO) and is directed towards entities and individuals who are subject to the tariff concessions specified in the revoked and newly made TCOs. The instrument applies to the particular goods whose tariff classification has been affected by a change in the Customs Tariff Act 1995. The geographical scope of this instrument is national, impacting all entities and individuals within Australia who are subject to the customs regulations outlined in the Customs Act 1901. The instrument does not specify any exclusions or exemptions and does not impose any thresholds. The application of this instrument is facilitated and potentially extended by subordinate instruments, as it operates within the framework set by sections 269C, 269P, and 269SD of the Customs Act 1901. The commencement of the revocation and the new TCO is effective from the date the tariff classification change took effect, as outlined in the instrument.
Key Provisions
The Tariff Concessions Revocation Instrument 79/2011 under the Customs Act 1901 addresses the revocation of a specific Tariff Concession Order (TCO) and the creation of a new one. Specifically, section 269SD(2) of the Act requires the Chief Executive Officer of Customs (CEO) to revoke TCO 0803407 and establish a new TCO, 1110345, when the tariff classification stated in the existing TCO no longer applies to the goods due to changes in the Customs Tariff Act 1995, decisions of a court of the Administrative Appeals Tribunal, or written advice from an officer of Customs. This change in tariff classification has resulted in the alteration of the tariff classification from 7612.90.00 to 7615.19.00.
The CEO’s obligations under this instrument include ensuring that the appropriate TCO is revoked and a new one is established when the specified conditions are met. This process ensures that the applicable tariff classification accurately reflects the current legislative and administrative context. The CEO must also make an order specifying the effective date of the revocation and the new TCO, which can either be the day the old TCO came into force or a later date as specified under section 269SD(4). Additionally, section 269SD(6) mandates that these provisions take effect despite section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.
The consequences of breaching the provisions outlined in this instrument include both civil and criminal penalties. The exact penalties are not detailed in the explanatory statement, but generally, breaches of the Customs Act 1901 can lead to substantial fines and, in severe cases, imprisonment. The penalties may vary based on the nature and severity of the breach, but they serve to enforce compliance with the tariff concession rules and ensure the integrity of the customs duty system.
In summary, the Tariff Concessions Revocation Instrument 79/2011 mandates the revocation of TCO 0803407 and the establishment of TCO 1110345 due to changes in tariff classifications. The CEO is responsible for implementing these changes and ensuring compliance with the Act. Breaches of these provisions may result in civil and criminal penalties, although the specific penalties are not detailed in the explanatory statement. The instrument ensures that the applicable tariff classifications are accurately maintained, reflecting changes in legislation and administrative decisions.