EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 80/2007
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 80/2007 was made on 30 April 2007. It revokes TCO 8734879 and makes TCO 0704551. The tariff classification has been changed from 8479.89 to 8477.80.00 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. 80/2007 revoked 8734879 and made new TCO 0704551 on 30 April 2007.
Overview
The Tariff Concessions Revocation Instrument 80/2007, enacted on 30 April 2007, addresses the need to revoke and replace Tariff Concession Orders (TCOs) in the Customs Act 1901 when there is a change in tariff classification. The instrument was introduced by the Commonwealth of Australia under the authority granted by sections 269C, 269P, and 269SD of the Customs Act 1901. The primary objective of this instrument is to ensure that the tariff classification stated in a TCO remains accurate and applicable to the goods it covers, thereby maintaining the integrity of the tariff concession scheme. The instrument revokes TCO 8734879 and introduces TCO 0704551 due to a change in tariff classification from 8479.89 to 8477.80.00, ensuring that the revised classification is correctly applied from the specified date. The revocation and new order are effective from the day on which the tariff classification change took effect, in accordance with the provisions of section 269SD(2) of the Customs Act 1901.
Scope and Application
The Tariff Concessions Revocation Instrument 80/2007 applies to the revocation and replacement of a Tariff Concession Order (TCO) under the Customs Act 1901. Specifically, this instrument revokes TCO 8734879 and introduces TCO 0704551, reflecting changes in tariff classification due to amendments in the Customs Tariff Act 1995. The application of this instrument is limited to the goods specified in the revoked and new TCOs, thereby affecting the entities involved in the import or export of these goods. The instrument operates on a national level, given its basis in Commonwealth legislation, and is relevant to all importers and exporters who were subject to the previous tariff concessions. The revocation and creation of new TCOs ensure that customs duties are applied correctly in accordance with the latest tariff classifications. The instrument does not specify any exclusions or thresholds but operates under the broader provisions of the Customs Act, which may include subordinate instruments that further detail application and enforcement.
Key Provisions
The Tariff Concessions Revocation Instrument 80/2007, made under the Customs Act 1901, primarily deals with the revocation and re-establishment of Tariff Concession Orders (TCOs) (sections 269C and 269P). Specifically, this instrument revokes TCO 8734879 and establishes a new TCO, 0704551, effective from 30 April 2007. The change in tariff classification from 8479.89 to 8477.80.00 was necessitated due to a revision in the Customs Tariff Act 1995. This shift in classification was implemented to ensure compliance with updated tariff regulations, thereby impacting the customs duty applicable to the goods concerned.
The Act imposes specific obligations on the Chief Executive Officer of Customs (CEO) regarding the administration and revocation of TCOs. The CEO is required to revoke a TCO if it is determined that the tariff classification stated in the order no longer applies to the goods due to a change in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer (subsection 269SD(2)). Additionally, the CEO must make a new TCO for the affected goods from the date of revocation (subsection 269SD(2)). These provisions ensure that the tariff classifications remain accurate and reflect any changes in the relevant legislation or court rulings.
In terms of consequences for non-compliance, the Act does not explicitly state offences or penalties for failing to adhere to the requirements of the Tariff Concessions Revocation Instrument. However, the failure to properly manage and update TCOs could potentially lead to incorrect customs duties being applied, which might result in financial implications for importers or exporters. The primary enforcement mechanism lies in the CEO's authority to revoke and re-establish TCOs to maintain the integrity of the tariff system. The commencement provisions outlined in subsections 269SD(2) and 269SD(4) ensure that the revocation and new TCO take effect from the appropriate date, with subsection 269SD(6) clarifying that these provisions override certain retrospective legislative restrictions.