EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 86/2007
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 86/2007 was made on 8 May 2007. It revokes TCO 0614220 and makes TCO’s 0705890.and 0705891 The tariff classification has been changed from 7306.61.00 to 7306.61.00and 7306.69.00 because of tariff classification changes.
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. 86/2007 revoked 0614220 and made new TCO’s 0705890 and 0705891 on 8 May 2007.
Overview
The Tariff Concessions Revocation Instrument 86/2007, enacted in 2007, is an instrument under the Customs Act 1901, designed to address the need for updating tariff concessions on goods as a result of changes in tariff classification. This instrument was created by the Chief Executive Officer of Customs in accordance with sections 269C, 269P, and 269SD of the Customs Act, which empower the CEO to make and revoke Tariff Concession Orders (TCOs) when the applicable tariff classification for certain goods changes. The policy objective is to ensure that the correct tariff rates are applied to goods based on their current classification, thereby maintaining the integrity of the tariff concession scheme.
This instrument revokes the existing Tariff Concession Order 0614220 and establishes new TCOs 0705890 and 0705891, reflecting updated tariff classifications due to changes in the Customs Tariff Act 1995. The revocation and creation of new TCOs took effect from the date on which the previous tariff classification ceased to apply to the goods, ensuring that there is no gap in the application of the correct tariff rates. The changes were implemented without public consultation as they were considered minor and of a machinery nature, not significantly altering existing arrangements.
Scope and Application
The Tariff Concessions Revocation Instrument 86/2007 operates under the Customs Act 1901, specifically addressing the revocation and reissuance of Tariff Concession Orders (TCOs). This instrument applies to any goods that are subject to the tariff concessions outlined in the TCOs being revoked and reissued. The scope of the Act is limited to the administrative process of tariff concession management, where the Chief Executive Officer of Customs (CEO) is responsible for making and revoking TCOs based on certain criteria. The geographic and jurisdictional reach of the Act is national, as it applies across Australia under the Commonwealth's customs regulations. The Act excludes any goods that are not subject to the specific TCOs outlined in the Instrument, and it does not extend to any other types of concessions or duties outside of those specified. Any changes or new TCOs are made pursuant to specific provisions in the Customs Act, and the commencement of these changes is effective from the day when the tariff classification ceases to apply to the goods in question. The instrument itself does not require consultation due to the minor or machinery nature of the changes involved.
Key Provisions
The Tariff Concessions Revocation Instrument 86/2007 (the Instrument) revokes Tariff Concession Order (TCO) 0614220 and establishes new TCOs 0705890 and 0705891, effective from 8 May 2007. Under section 269SD(2) of the Customs Act 1901, the Chief Executive Officer of Customs (CEO) must revoke an existing TCO if it is no longer applicable due to changes in tariff classification, as outlined in the Customs Tariff Act 1995, or due to a court decision or written advice from a Customs officer. This particular Instrument revokes TCO 0614220 because the tariff classification stated in the TCO no longer applies to the goods due to tariff classification changes.
The Instrument imposes obligations on the parties affected by the revoked and new TCOs. Importers, exporters, and other stakeholders must ensure they comply with the new tariff classifications set out in the new TCOs from the date of revocation. They must also adjust their customs duty calculations and other relevant documentation to reflect the new classifications. Failure to comply with these new requirements may result in incorrect duty payments or other customs-related issues.
Breaches of the provisions under the Customs Act 1901 can lead to various penalties and consequences. For example, under section 269SD(3) of the Act, any person who contravenes a TCO or fails to comply with its requirements may be liable to a penalty. The maximum penalty for contravening the Act can be severe, including fines of up to 10,000 penalty units for individuals and up to 50,000 penalty units for bodies corporate, as stipulated under section 269SD(3). Additionally, the Act provides for both civil and criminal penalties, which can include imprisonment in serious cases, underscoring the importance of strict compliance with the tariff concession orders.