EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 81/2006
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 81/2006 was made on 29 August 2006. It revokes TCO 0516759 and makes TCO 0613241 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.81/2006 revoked 0516759 and made new TCO 0613241 on 29 August 2006.
Overview
The Tariff Concessions Revocation Instrument 81/2006 was enacted to correct a transcription error in the description of goods and their tariff classification under the Customs Act 1901. The instrument was developed to address the issue where a TCO, specifically TCO 0516759, contained an error that required rectification. The instrument was made by the Chief Executive Officer of Customs under the authority granted by subsection 269SD(2) of the Act, which allows for the revocation of a TCO and the issuance of a new one if a transcription error is identified. The Tariff Concessions Revocation Instrument 81/2006 revokes TCO 0516759 and establishes TCO 0613241, effective from the date the initial TCO came into force. The instrument ensures that the correction aligns with the Act's requirements and operates without retrospective effect, in accordance with section 12 of the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 81/2006 is a legislative instrument under the Customs Act 1901, specifically addressing the revocation of Tariff Concession Orders (TCOs) due to transcription errors. It applies to goods that were originally subject to a TCO, where the CEO has identified an error in the description of the goods or their tariff classification. The Instrument revokes TCO 0516759 and replaces it with TCO 0613241 to correct these errors. The revocation and creation of new TCOs are governed by subsection 269SD(2) of the Act, which empowers the CEO to make such changes upon determining that a transcription error exists. This legislative instrument operates at the Commonwealth level, aligning with the overarching framework established by the Customs Act 1901. The changes made by this Instrument have retroactive effect, as stipulated by subsection 269SD(3), which ensures that the revocation and effect of the new TCO take place from the date the original TCO came into force, notwithstanding the general prohibition on retrospective legislative instruments as per section 12 of the Legislative Instruments Act 2003.
Key Provisions
The Tariff Concessions Revocation Instrument 81/2006, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0516759 and introduces TCO 0613241. This legislative instrument was necessitated by a transcription error in the description of goods subject to the original order. According to section 269SD(2) of the Customs Act, if a transcription error is identified in the description of goods or tariff classification within a TCO, the Chief Executive Officer of Customs (CEO) may revoke the existing TCO and issue a new one to correct the error. This process ensures that the correct tariff rates are applied to the relevant goods.
The obligations imposed by this instrument primarily concern the CEO and entities or individuals affected by the TCOs. The CEO is obligated to carefully review applications for TCOs to ensure accuracy in the description of goods and tariff classifications. Affected entities must comply with the new TCO by adhering to the corrected tariff rates. Furthermore, the CEO is tasked with ensuring that the revocation and issuance of new TCOs do not have retrospective effect, as per section 269SD(6) of the Act, which operates despite the prohibitions in section 12 of the Legislative Instruments Act 2003.
Breaching the terms of a TCO, whether through non-compliance with the correct tariff rates or failure to adhere to the conditions specified in the order, can lead to significant consequences. Under the Customs Act 1901, penalties for non-compliance may include financial penalties and, in serious cases, criminal charges. The specific penalties for breaches are not detailed in the instrument but generally, penalties for breaches of the Customs Act can be severe, including substantial fines and imprisonment for individuals, reflecting the seriousness of non-compliance with customs regulations.