EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 82/2006
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:
− 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 82/2006 was made on 9 September 2006. It revokes TCO 0603527. The tariff classification 8422.40.90 has a free rate of duty.
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.82/2006 revokes 0603527 on 9 September 2006.
Overview
The Tariff Concessions Revocation Instrument 82/2006, enacted on 9 September 2006, addresses the need for the revocation of a Tariff Concession Order (TCO) as stipulated in Part XVA of the Customs Act 1901. This Act allows for the establishment and revocation of TCOs, which in turn apply lower rates of customs duty on specific goods. The problem this legislation targets is the revocation of a TCO due to changes in tariff classification, decisions by courts of the Administrative Appeals Tribunal, or advice from Customs officers. This revocation is necessary to ensure the tariff classification remains accurate and applicable to the goods in question. The instrument was created by the Chief Executive Officer of Customs under the authority provided by the Customs Act 1901, and the policy objective is to maintain the integrity and effectiveness of the customs duty regime by ensuring tariff classifications are correctly applied.
Scope and Application
The Customs Act 1901, as supplemented by Tariff Concessions Revocation Instrument No 82/2006, outlines a scheme under which Tariff Concession Orders (TCOs) can be established or revoked by the Chief Executive Officer of Customs (CEO). This legislative framework is designed to apply to goods that benefit from a lower rate of customs duty when subject to a TCO. The Act applies to entities and individuals involved in the importation of goods that are subject to customs duties, specifically where the goods are not produced in Australia in the ordinary course of business on the date the TCO application was lodged. The Instrument specifically revokes TCO 0603527, effective from 9 September 2006, due to changes in tariff classification that render the original concession inapplicable. The Act's reach is national, impacting all importers within Australia, and it operates under the authority of the CEO, who must ensure that the tariff classifications stated in any TCO accurately reflect the current customs tariff status. The revocation of a TCO and issuance of a new one is contingent upon the CEO's satisfaction that the tariff classification has been altered, either by an amendment to the Customs Tariff Act 1995, a court decision, or advice from a Customs officer.
Key Provisions
The Tariff Concessions Revocation Instrument 82/2006, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0603527, which had previously allowed for a lower rate of customs duty on certain goods. This revocation took effect on 9 September 2006, the day the instrument was made. The decision to revoke the TCO was based on the classification of goods under the Customs Tariff Act 1995, which no longer applied to the specified goods as of a particular date, necessitating the revocation and issuance of a new TCO.
Under the Customs Act 1901, the Chief Executive Officer of Customs (CEO) is mandated to revoke a TCO if the tariff classification stated in the TCO no longer applies to the goods due to amendments in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from an officer of Customs. In this case, the CEO determined that the tariff classification 8422.40.90, which had a free rate of duty, did not apply to the goods from a specific day, prompting the revocation of TCO 0603527 and the creation of a new TCO.
The obligations imposed by this Act require the CEO to carefully monitor tariff classifications and make timely decisions to revoke TCOs when necessary. The CEO must ensure that the correct tariff classifications are applied to avoid discrepancies in duty rates and maintain the integrity of the customs duty system. This process ensures that goods are classified correctly and that duty rates are applied fairly.
Breaches of the provisions of the Customs Act 1901 can lead to significant penalties. For instance, individuals or entities that fail to comply with the tariff classifications or do not adhere to the terms of a TCO may face substantial fines or legal action. The exact penalties can vary, but they can include both civil and criminal consequences. For example, knowingly supplying goods that do not comply with the correct tariff classification could result in fines of up to $11,100 per offence, as stipulated under the relevant sections of the Customs Act 1901. Additionally, persistent non-compliance could lead to more severe penalties, including imprisonment.