Overview

The Tariff Concessions Revocation Instrument 81/2011 was enacted in 2011 to address the issue of unused Tariff Concession Orders (TCOs) under the Customs Act 1901. This instrument provides the framework for revoking TCOs that have not been utilised for a continuous period of two years, thereby ensuring the tariff concession scheme remains efficient and relevant to current trade practices. The instrument was made by the Chief Executive Officer of Customs, as authorised by the Act, with the policy objective of maintaining an effective and responsive tariff concession scheme that supports Australian business and trade interests. The Tariff Concessions Revocation Instrument 81/2011 revokes TCO 0510437 because it has not been quoted in an import entry to secure a concessional rate of duty for the preceding two years. This revocation aligns with the legislative provision that allows for the cessation of TCOs that are no longer in use, thereby ensuring that the tariff concession scheme remains effective and responsive to the needs of the Australian economy. The instrument came into effect from the day the CEO became satisfied that the TCO had not been used in the preceding two years, and it operates despite the prohibition on certain retrospective legislative instruments under the Legislative Instruments Act 2003.

Scope and Application

The Customs Act 1901, under its Part XVA, facilitates the issuance and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. These orders apply a reduced rate of customs duty to specified goods, contingent upon certain criteria being met, such as the absence of domestic production of substitutable goods at the time of the application. The scope of the Act encompasses any entity or individual seeking to import goods under a concessional rate, effectively influencing the importation industry. The geographical reach of the Act is national, impacting all entities and individuals engaged in import activities within Australia. The Act does not specify exclusions or exemptions within the provided text, but it does outline circumstances under which a TCO may be revoked, such as non-utilisation over a two-year period. The revocation process itself is governed by the Act and can be implemented without the need for consultation if the specified conditions for revocation are met. The revocation becomes effective from the date the CEO is satisfied with the conditions, and it operates under the legislative framework that allows for certain retrospective actions despite general prohibitions on retrospective legislative instruments.

Key Provisions

The Tariff Concessions Revocation Instrument No. 81/2011, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0510437. Section 269SD(1A) allows the Chief Executive Officer of Customs (CEO) to revoke a TCO if it has not been used to secure a concessional rate of duty in the two years prior to the CEO's satisfaction that it is no longer required. This revocation was made effective from 27 July 2011, the day the CEO was satisfied that TCO 0510437 had not been utilised. The revocation is effective despite section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments, due to the specific provision in subsection 269SD(6). The Act imposes several obligations on the CEO in relation to TCOs. Under section 269C, a TCO may be made if the application for it meets certain criteria, notably that no substitutable goods were produced in Australia at the time of application. The CEO must also ensure that a TCO is revoked if it has not been quoted in an import entry to secure a concessional rate of duty for two consecutive years, as stipulated in section 269SD(1A). Furthermore, the CEO must be satisfied that a TCO is no longer required before revoking it, a process that is governed by the provisions of section 269SD. Breaching the requirements of the Customs Act 1901 can lead to various consequences. For example, knowingly making a false statement in an import entry to secure a concessional rate of duty under a TCO can result in criminal charges. Section 269D(1) of the Act provides that a person can be fined up to 10,000 penalty units or imprisoned for up to 5 years, or both, for such offences. Additionally, under section 269E, any person who engages in conduct that constitutes fraud in relation to the import or export of goods can face similar penalties. The maximum penalties underscore the seriousness with which the Act treats breaches of its provisions. Failure to comply with the requirements of the Customs Act 1901 can also lead to civil consequences. For instance, under section 269G, a person can be liable for a penalty equal to the amount of duty evaded or the amount of drawback wrongfully claimed, whichever is greater. This penalty is in addition to any other penalties that may be imposed. The Act also provides for the recovery of debts owed to the Commonwealth, including customs duty, through various means, including garnishee orders and seizure of property, as outlined in Part XVI of the Act. These provisions ensure that non-compliance with the Act has tangible financial repercussions.