Overview

The Tariff Concessions Revocation Instrument 86/2011, enacted on 27 July 2011, was introduced to address the issue of tariff concessions that had not been utilized within the preceding two years, as permitted under the Customs Act 1901. This instrument was issued under the authority of the Chief Executive Officer of Customs, pursuant to subsection 269SD(1A) of the Customs Act, which allows for the revocation of Tariff Concession Orders (TCOs) that have become redundant. The primary objective of this legislative instrument is to ensure that tariff concessions are actively used to benefit trade, thereby maintaining the efficiency and relevance of the customs duty system. No consultation was deemed necessary for this revocation as the unused TCO would have no ongoing impact on businesses. The enacting body for this instrument is the Chief Executive Officer of Customs, operating under the framework established by the Parliament of Australia. The Customs Act 1901, as amended, empowers the CEO to manage and revoke TCOs to prevent the unnecessary accumulation of unused tariff concessions. By revoking TCO 0516036, the instrument ensures that the customs duty system remains dynamic and responsive to current trade needs, thereby supporting the policy objective of maintaining an efficient and fair trade environment.

Scope and Application

The Tariff Concessions Revocation Instrument No. 86/2011, made under the Customs Act 1901, specifically revokes Tariff Concession Order (TCO) 0516036, reflecting the decision by the Chief Executive Officer of Customs (CEO) that the particular concession is no longer necessary. This revocation is grounded in the CEO's satisfaction that TCO 0516036 had not been utilized in import entries to secure a concessional rate of duty within the preceding two years, as stipulated in subsection 269SD(1A) of the Act. The instrument operates within the legislative framework that allows the CEO to revoke TCOs that meet these specific conditions, thereby ensuring that tariff concessions remain aligned with current trade practices and economic conditions. This revocation has immediate effect from the day the CEO becomes satisfied of the non-utilisation, as per subsection 269SD(1A), and it is effective despite the prohibition on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003, as provided by subsection 269SD(6) of the Customs Act.

Key Provisions

The main operative sections of the Tariff Concessions Revocation Instrument No. 86/2011 include subsection 269SD(1A) of the Customs Act 1901, which allows the Chief Executive Officer of Customs (the CEO) to revoke a Tariff Concession Order (TCO) if it has not been quoted in an import entry to secure a concessional rate of duty in the two years preceding the day the CEO becomes satisfied that the TCO is no longer required. The instrument itself revokes TCO 0516036 based on this criterion. Section 269SD(6) ensures that the revocation is effective despite any prohibitions on retrospective legislative instruments under section 12 of the Legislative Instruments Act 2003. The revocation took effect on 27 July 2011. The Act imposes obligations on the CEO to monitor the usage of TCOs and to revoke those that have not been used in securing a concessional rate of duty for two consecutive years. The CEO must be satisfied that the TCO is no longer required before revoking it. The instrument does not require any consultation since the TCO has not been used and therefore, the revocation will not affect any businesses. Breaching the conditions set forth in the Customs Act 1901, including failing to comply with the CEO's decision to revoke a TCO, may lead to civil or criminal consequences. While the explanatory statement does not specify the exact offences or penalties for breach, the Customs Act 1901 generally provides for penalties for non-compliance with its provisions. These may include fines and imprisonment. The maximum penalties would depend on the specific nature and severity of the breach.