EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 87/2011
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(1A) of the Act provides that the CEO may revoke a TCO if he or she is satisfied on any day that a TCO is no longer required because, in the 2 years preceding that day, the TCO has not been quoted in an import entry to secure a concessional rate of duty.
Instrument
Tariff Concessions Revocation Instrument No. 87/2011 was made on 27 July 2011. It revokes TCO 0516037 as the CEO is satisfied that the TCO has not been used in the preceding 2 years.
Consultation
No consultation was undertaken. Since the TCO has not been used in the preceding 2 years, the revocation of the TCO will not have an effect on business.
Commencement
Subsection 269SD(1A) provides that the order revoking the TCO has effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding 2 years.
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. 87/2011 revoked TCO 0516037 on 27 July 2011.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework for the imposition of customs duties and the provision of tariff concessions to ensure fair trade practices and economic stability. The Tariff Concessions Revocation Instrument 87/2011, made by the Chief Executive Officer of Customs, addresses the issue of unused tariff concession orders by revoking those that have not been applied for two consecutive years, thus streamlining the concessions scheme and ensuring it remains effective and relevant. This revocation instrument reflects the policy objective of maintaining an efficient and responsive customs duty system that aligns with current trade practices and economic conditions.
Scope and Application
The Tariff Concessions Revocation Instrument 87/2011 applies to Tariff Concession Orders (TCOs) under the Customs Act 1901. Specifically, it pertains to the revocation of TCO 0516037, which had been established to apply lower rates of customs duty on certain imported goods. The Instrument revokes the TCO because the Chief Executive Officer of Customs (CEO) determined that the concession had not been utilised in the two years preceding the revocation date. The revocation has no practical effect on business as the TCO was not in use. The Instrument falls within the jurisdiction of the Commonwealth and applies to any entities or persons affected by the terms of the revoked TCO. There are no stated exclusions or exemptions in the Instrument itself, though the application of the Customs Act 1901 and its associated regulations may impose certain limitations. The scope of the Act can be extended or restricted through subordinate instruments, such as further revocations or new TCOs, as authorised by the Act.
Key Provisions
The Tariff Concessions Revocation Instrument No. 87/2011 (sections 269C, 269P, and 269SD) pertains to the revocation of Tariff Concession Order (TCO) 0516037. The instrument revokes the TCO because the Chief Executive Officer of Customs (CEO) determined that it had not been utilised in securing a concessional rate of duty for any imports in the two years preceding the revocation date. This revocation means that the lower rate of customs duty previously applicable to the goods under this TCO no longer applies. The CEO's satisfaction that the TCO was not quoted in any import entry during the specified period is the basis for this revocation.
The Customs Act 1901 imposes specific obligations on parties and entities governed by TCOs. For example, section 269C outlines the criteria for making a TCO, which must be met by applicants. Section 269P, meanwhile, mandates that the CEO must ensure the TCO criteria are met before issuing an order. Section 269SD places the responsibility on the CEO to revoke a TCO if it is determined that the order is no longer required. This process is designed to ensure that tariff concessions are only granted when necessary and are actively being used for their intended purpose.
Failure to comply with the conditions set forth by the Customs Act 1901 can lead to various consequences. If an entity misuses a TCO or if the CEO determines that a TCO is no longer required but continues to be quoted, this could result in legal action. The Act does not specify particular offences or penalties in this context, but breaches of customs regulations can generally lead to fines, penalties, or other enforcement actions. The maximum penalties would be in line with those applicable to other breaches of the Customs Act, which can include substantial fines and potential criminal charges in severe cases.
The Tariff Concessions Revocation Instrument No. 87/2011 revokes TCO 0516037 based on the CEO's satisfaction that it had not been used in the past two years. This revocation took effect from the day the CEO became satisfied of the TCO's inactivity. Importantly, section 269SD(6) of the Customs Act 1901 ensures that this revocation is effective despite the prohibitions outlined in section 12 of the Legislative Instruments Act 2003, which generally restricts the making of retrospective legislative instruments. This ensures the revocation is legally sound and enforceable.