EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 81/2008
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 81/2008 was made on 16 July 2008. It revokes TCO 0803005 and makes TCO 0818533. The tariff classification has been changed from 8422.30.90 to 8428.90.00 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. 81/2008 revoked 0803005 and made new TCO 0818533 on 16 July 2008, with the Revocation date of effect as from 9 April 2008
Overview
The Customs Act 1901 was enacted to provide a comprehensive framework for the administration of customs and excise duties, and it includes provisions for the creation and revocation of Tariff Concession Orders (TCOs). In 2008, the Tariff Concessions Revocation Instrument 81/2008 was introduced to address a specific issue related to the tariff classification of goods. This instrument was created in response to changes in the tariff classification under the Customs Tariff Act 1995, which necessitated the revocation of an existing TCO and the creation of a new one to ensure compliance with current tariff classifications. The instrument was developed by the Chief Executive Officer of Customs, who is responsible for making and revoking TCOs under the Act. The policy objective behind this instrument was to maintain the integrity of the tariff concession scheme by ensuring that the correct tariff classifications are applied to goods, thereby avoiding any potential discrepancies or legal challenges.
Scope and Application
The Tariff Concessions Revocation Instrument 81/2008, made under the Customs Act 1901, applies to entities or individuals who benefit from tariff concession orders in relation to specific goods subject to customs duty. The Act's provisions pertain to the revocation and creation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which determine the customs duty applicable to goods that are not produced domestically. This legislation affects those involved in the import and export of goods that fall under the revised tariff classification. The Instrument revokes TCO 0803005 and establishes TCO 0818533, reflecting the change in tariff classification from 8422.30.90 to 8428.90.00 due to amendments in the Customs Tariff Act 1995. The revocation and new order are effective from 9 April 2008, aligning with the date the previous tariff classification ceased to apply. While the Act has a national scope within Australia, its specific application is limited to the particular goods and entities affected by the TCOs. The Instrument's creation and operation are governed by the Customs Act 1901 and the Customs Tariff Act 1995, with the revocation order's effective date determined in accordance with the Customs Act provisions.
Key Provisions
The Tariff Concessions Revocation Instrument 81/2008 (Instrument) operates under the Customs Act 1901 (the Act) and specifically targets Tariff Concession Orders (TCOs) which provide for lower rates of customs duty on certain goods. Section 269SD(2) of the Act mandates the revocation of a TCO if it is determined that the tariff classification specified in the TCO no longer applies to the goods due to a tariff amendment, a court decision, or written advice from a Customs officer. The Instrument revokes TCO 0803005 and introduces a new TCO, 0818533, with effect from the day the previous TCO's tariff classification ceased to apply, in this instance, from 9 April 2008. This change was necessitated by an alteration in tariff classification from 8422.30.90 to 8428.90.00.
Under the Act, the Chief Executive Officer of Customs (CEO) is obligated to revoke a TCO if certain conditions are met, as specified in section 269SD(2). The CEO must also make a new TCO that reflects the updated tariff classification. The Instrument, therefore, mandates that the CEO follows through with these requirements to ensure that the correct tariff classifications are applied to the goods. Additionally, the Instrument must be consistent with section 269SD(6), which overrides section 12 of the Legislative Instruments Act 2003, thereby allowing the creation of retrospective legislative instruments.
Breaching the provisions of the Instrument could result in non-compliance with the Act, potentially leading to the application of incorrect customs duties on the affected goods. This non-compliance could have financial repercussions for both importers and the government, as incorrect duty rates could result in either overpayment or underpayment of customs duties. While the explanatory statement does not explicitly detail specific offences, penalties, or consequences for breach, such breaches could potentially lead to investigations, fines, or other legal actions under the Customs Act and related legislation. The exact penalties would depend on the nature and severity of the breach, but they could include financial penalties, administrative sanctions, or legal proceedings.