EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 83/2007
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.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsections 269SC(1) and (3) of the Act, the CEO must make an order revoking the TCO if the CEO is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO; and
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
Australian Weaving Mills Pty Ltd requested that the CEO revoke TCO 0613070 which covers Bed Linen.
Instrument
Tariff Concessions Revocation Instrument No 83/2007 was made on 17 May 2007. It revokes TCO 0613070 as the CEO is satisfied that Australian Weaving Mills Pty Ltd is a producer in Australia of substitutable goods and that the CEO would not have made the TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged. Subsection 239SD(8) provides, in part, that subsection 269SC(6) 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.83/2007 revoked 0613070 on 17 May 2007.
Overview
The Tariff Concessions Revocation Instrument 83/2007 was enacted in 2007 to address a specific issue within the Customs Act 1901, namely the revocation of Tariff Concession Orders (TCOs). This legislative instrument was introduced by the Chief Executive Officer of Customs (CEO) in response to a request by Australian Weaving Mills Pty Ltd to revoke TCO 0613070, which covers Bed Linen. The revocation was carried out in accordance with the Act, ensuring that the CEO was satisfied that Australian Weaving Mills Pty Ltd is a producer of substitutable goods and that the CEO would not have made the TCO if the revocation request had been lodged on the day the initial TCO application was made. This instrument ensures that the Customs Act 1901 remains responsive to changes in the Australian production landscape and maintains a fair and competitive environment for domestic producers.
Scope and Application
The Tariff Concessions Revocation Instrument 83/2007 under the Customs Act 1901 applies to the revocation of Tariff Concession Orders (TCO) when certain conditions are met, specifically when a producer in Australia of substitutable goods requests such revocation and the CEO is satisfied that the TCO would not have been made if the request were lodged on the day the original TCO application was made. The revocation applies to entities and individuals involved in the production of goods subject to TCOs and affects industries involved in the importation of goods that benefit from tariff concessions. The geographic reach of the Act is national, as it applies across Australia. The Act does not specify exclusions, exemptions, or thresholds for the revocation of TCOs, but it allows the CEO to extend or restrict the application of the revocation through subordinate instruments, as outlined in the Act. The revocation of a TCO is effective from the day the request for revocation was lodged, notwithstanding any retrospective legislative constraints.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 83/2007 (sections 269SC(1) and 269SC(3)) empower the Chief Executive Officer of Customs (CEO) to revoke a Tariff Concession Order (TCO) if they are satisfied that the applicant is a producer of substitutable goods in Australia and that the CEO would not have made the TCO if the request was lodged on the day the TCO was originally applied for. This revocation process is in accordance with the Customs Act 1901, which outlines the scheme for making and revoking TCOs (section 269C). The instrument revokes TCO 0613070, which was related to Bed Linen, due to Australian Weaving Mills Pty Ltd's application.
The Act imposes specific obligations on the CEO in the revocation process. Firstly, the CEO must ensure that the applicant is indeed a producer of substitutable goods in Australia and that such goods could have been produced in Australia on the day the TCO application was made (section 269SC(1)). Secondly, the CEO is required to publish a notice in a Gazette as soon as practicable after receiving a revocation request. This notice must include a statement of the lodged request and full particulars of the TCO in question (subsection 269SC(1A)). Additionally, the revocation order comes into effect on the day the request to revoke the TCO was lodged (subsection 269SC(6)).
In terms of consequences for breach, the Customs Act 1901 does not explicitly outline specific offences or penalties for non-compliance with the revocation provisions. However, the general legal framework implies that any misuse or improper application of the revocation process could lead to legal challenges or administrative actions. The revocation order itself is designed to maintain fairness and competitiveness in the production of goods within Australia, ensuring that tariff concessions are only granted when genuinely warranted.
The revocation of TCO 0613070 by Tariff Concessions Revocation Instrument No. 83/2007 on 17 May 2007 reflects the legislative intent to prevent the misuse of tariff concessions and to ensure that such concessions are only applicable when no substitutable goods are produced in Australia. This ensures a balanced approach to trade and local production, safeguarding the interests of Australian producers.