EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 85/2006
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 85/2006 was made on 9 September 2006. It revokes TCO 0609673 and makes TCO 0616193. The tariff classification has been changed from 8431.39.00 to 8483.40.90 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. 85/2006 revoked 0609673 and made new TCO 0616193 on 9 September 2006.
Overview
The Customs Act 1901 was enacted to provide a regulatory framework for customs and border control in Australia. The Tariff Concessions Revocation Instrument 85/2006 was introduced to address the issue of tariff classification changes impacting existing Tariff Concession Orders (TCOs). This instrument allows the Chief Executive Officer of Customs to revoke and reissue TCOs when necessary, ensuring that the correct tariff classification applies to the goods in question. The instrument was made by the relevant authority under the Customs Act 1901, with the policy objective of maintaining the accuracy and relevance of tariff concessions in light of changes to the Customs Tariff Act 1995, court decisions, or other relevant factors. The revocation and reissuance of TCOs are to take effect from the date the previous tariff classification no longer applies, ensuring a seamless transition and compliance with the relevant legislation.
Scope and Application
The Customs Act 1901, specifically under Part XVA, governs the creation and revocation of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs. This legislation applies to entities and individuals that import goods subject to TCOs, which provide a lower rate of customs duty. The application of TCOs is contingent upon the criterion that, at the time of application, the goods in question are not produced in Australia in the ordinary course of business. The scope of this Act extends nationally and is subject to the Commonwealth's jurisdiction. The Act includes provisions for the revocation of TCOs if the tariff classification changes or if there is a decision by the Administrative Appeals Tribunal or advice from a Customs officer. The revocation and establishment of new TCOs are effective from the day the tariff classification change takes effect, as stipulated in subsection 269SD(2) of the Act. This legislative instrument operates under the framework set by the Customs Act, with specific implementation details provided through subordinate instruments, such as the Tariff Concessions Revocation Instrument 85/2006. This instrument, which revokes TCO 0609673 and establishes TCO 0616193, came into effect on 9 September 2006, following a tariff classification change.
Key Provisions
The Tariff Concessions Revocation Instrument 85/2006 primarily operates under the Customs Act 1901, particularly sections 269C, 269P, and 269SD. The instrument revokes Tariff Concession Order (TCO) 0609673 and establishes a new TCO 0616193, effective from the same day. This revocation and establishment arise due to a change in tariff classification from 8431.39.00 to 8483.40.90, following an amendment in the Customs Tariff Act 1995. The revocation and new TCO take effect from the day the old tariff classification ceased to apply to the goods in question. The instrument was made on 9 September 2006 and ensures that the new TCO applies from the day of revocation, regardless of the date the old TCO came into force.
The Act imposes several obligations on the parties involved. Firstly, it mandates that the Chief Executive Officer of Customs (CEO) must make a new TCO when the tariff classification of goods changes, ensuring that the correct duty rates are applied. Additionally, the CEO must revoke the outdated TCO to prevent any confusion or misuse of the tariff concessions. Furthermore, any entity or individual relying on the tariff concessions must ensure that they adhere to the correct tariff classifications as per the new TCO. Failure to do so could result in the incorrect application of customs duties, which may lead to penalties or legal repercussions.
Breaches of the provisions under this instrument may result in various civil and criminal consequences. The Customs Act 1901 stipulates that any non-compliance with the tariff classifications or misuse of the concessions can lead to financial penalties. For instance, under section 269SD, the CEO has the authority to impose fines on those who fail to comply with the new tariff classifications. The maximum penalties for such breaches can be substantial, depending on the severity and frequency of the offence. Additionally, persistent or deliberate non-compliance may result in legal action against the offending party, further emphasising the importance of adhering to the updated tariff classifications.