EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 85/2007
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.
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 85/2007 was made on 10 May 2007. It revokes TCO 0702190 and makes TCO 0705894. The tariff classification has been changed from 8426.49.00 to 8479.89.90 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. 85/2007 revoked 0702190 and made new TCO 0705894 on 10 May 2007.
Overview
The Tariff Concessions Revocation Instrument 85/2007 was enacted in 2007 under the authority of the Customs Act 1901. This instrument was introduced to address the need for adjusting tariff concessions when there are changes in tariff classifications, as outlined in the Customs Tariff Act 1995, or due to court decisions or advice from Customs officers. The instrument revokes an existing Tariff Concession Order (TCO) and establishes a new TCO to reflect the updated tariff classification, ensuring that the appropriate duty rates are applied to the relevant goods. The enactment of this instrument is governed by the Commonwealth Parliament and aligns with the policy objective of maintaining the accuracy and relevance of tariff concessions in response to changing circumstances.
The Tariff Concessions Revocation Instrument 85/2007 was issued by the Chief Executive Officer of Customs, revoking TCO 0702190 and instituting TCO 0705894, following a change in tariff classification. The revocation and establishment of new TCOs are made effective from the date the previous tariff classification ceased to apply to the goods. This instrument ensures that the customs duties are correctly applied as per the current tariff classifications, thereby maintaining the integrity of the customs duty scheme. The instrument was issued without consultation as it was considered to be of a minor, machinery nature and did not substantially alter existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 85/2007 operates under the Customs Act 1901 and applies specifically to the revocation and re-establishment of Tariff Concession Orders (TCOs). It targets entities and goods affected by the changes in tariff classification, ensuring that the application of customs duties aligns with updated tariff schedules. The revocation of TCO 0702190 and the establishment of TCO 0705894 reflects adjustments necessitated by alterations in the Customs Tariff Act 1995. This legislative instrument pertains to the Commonwealth of Australia, affecting entities and individuals engaged in the import and export of goods subject to the specified tariff changes. The instrument is crafted to maintain the integrity of the tariff concession scheme, ensuring that duty rates are correctly applied as per the prevailing tariff classifications. The revocation and subsequent re-establishment of the TCOs are made effective from the date the previous tariff classification ceased to apply, ensuring continuity and compliance in customs duty applications.
Key Provisions
The Tariff Concessions Revocation Instrument 85/2007 under the Customs Act 1901 revokes Tariff Concession Order (TCO) 0702190 and introduces a new TCO, 0705894, effective from the date of revocation. This change was made due to a modification in the tariff classification, altering it from 8426.49.00 to 8479.89.90. This legislative instrument is in line with sections 269C, 269P, and 269SD(2) of the Customs Act, which empower the Chief Executive Officer of Customs (CEO) to make and revoke TCOs based on specific criteria.
The main requirement under this instrument is that the CEO must revoke a TCO and issue a new one if they are satisfied that the tariff classification no longer applies to the goods due to a change in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer. This obligation is crucial for ensuring that the duty rates on imported goods remain accurate and reflect current tariff classifications.
Furthermore, this Act imposes clear obligations on the parties involved, primarily the CEO and importers. The CEO must diligently monitor tariff classifications and make necessary amendments to TCOs to maintain compliance with the Customs Tariff Act. Importers, on the other hand, must stay informed about the tariff classifications applicable to their goods to ensure they are paying the correct duty rates.
Failing to comply with the provisions of the Customs Act 1901 and the associated TCOs can result in various penalties. While the Explanatory Statement does not detail specific civil or criminal penalties, breaches of customs regulations generally incur financial penalties or, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, but they could include fines or imprisonment for criminal offences.
The Tariff Concessions Revocation Instrument 85/2007 was made without consultation due to the minor nature of the change, which does not substantially alter existing arrangements. The revocation and new TCO took effect on 10 May 2007, in accordance with subsection 269SD(2) of the Customs Act, which allows the CEO to make such orders effective from the day the previous tariff classification ceased to apply to the goods. This legislative instrument operates despite section 12 of the Legislative Instruments Act 2003, which generally prohibits retrospective legislative instruments.