EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 88/2006
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 88/2006 was made on 19 September 2006. It revokes TCO 0610736 and makes TCO 0617312. The tariff classification has been changed from 9405.40.00 to 8513.10.00 because 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. 88/2006 revoked 0610736 and made new TCO 0617312 on 19 September 2006.
Overview
The Tariff Concessions Revocation Instrument 88/2006, enacted on 19 September 2006, addresses changes in tariff classification impacting tariff concession orders under the Customs Act 1901. This instrument was created to rectify discrepancies in tariff classifications as a result of amendments to the Customs Tariff Act 1995 or court decisions, ensuring that the correct tariff classifications are applied to goods subject to concession orders. The Customs Act 1901, enacted by the Australian Parliament, provides the legal framework for administering customs duties and tariffs, and the instrument aims to maintain the integrity of the tariff concession scheme by adjusting the classifications accordingly. The revocation and creation of new tariff concession orders are governed by specific provisions in the Customs Act, ensuring that these changes are effective from the day they cease to apply to the goods, as outlined in the Legislative Instruments Act 2003.
Scope and Application
The Tariff Concessions Revocation Instrument 88/2006, made under the Customs Act 1901, specifically addresses the revocation and replacement of a Tariff Concession Order (TCO) due to changes in tariff classification. The instrument applies to the goods covered by the revoked TCO and the new TCO, effectively altering the customs duty rates applicable to these goods. The Chief Executive Officer of Customs is responsible for making this order when satisfied that the tariff classification no longer applies to the goods. The geographic reach of this Act is national, impacting all parties dealing with the affected goods within Australia. There are no stated exclusions or exemptions in this particular instrument, and the application is limited to the goods whose tariff classification has changed. The instrument extends the application of the Customs Act by specifying the new TCO, which becomes effective from the date of revocation. This revocation and replacement mechanism ensures that the customs duty rates accurately reflect the current tariff classifications, thereby maintaining the integrity of the tariff system.
Key Provisions
The main operative sections of the Tariff Concessions Revocation Instrument 88/2006 (F2006L03249) are sections 269C, 269P, and 269SD of the Customs Act 1901. Section 269C allows the Chief Executive Officer (CEO) of Customs to make a Tariff Concession Order (TCO) if the application meets specific criteria, such as the absence of substitutable goods produced in Australia. Section 269P provides for the revocation of a TCO, while section 269SD requires the CEO to revoke a TCO and issue a new one if there is a change in tariff classification or other specified circumstances. In this particular instance, TCO 0610736 was revoked and replaced with TCO 0617312 due to a tariff classification change. This instrument was made on 19 September 2006.
The Act imposes several obligations on the parties and entities it governs. Firstly, the CEO must ensure that the criteria for making a TCO are met, particularly that no substitutable goods are produced in Australia. The CEO also has a duty to monitor tariff classifications and to revoke and replace TCOs when necessary. Furthermore, the Act requires that any changes to TCOs must be documented and implemented in a timely manner, ensuring that the new TCOs reflect the current tariff classifications accurately.
In terms of offences and penalties, the Customs Act 1901 does not explicitly outline specific criminal penalties for breaches related to TCOs. However, breaches of the Act could potentially lead to civil or administrative penalties, depending on the nature and severity of the breach. For instance, failure to comply with the Act's provisions could result in fines, legal action, or other enforcement measures. The exact penalties would depend on the specific circumstances and the discretion of the authorities involved.
The Tariff Concessions Revocation Instrument 88/2006 itself does not detail specific penalties for non-compliance with its provisions. However, any breaches of the Customs Act 1901, which the instrument operates under, could lead to significant consequences. For example, knowingly making false statements or providing misleading information in an application for a TCO could result in fines or imprisonment under the relevant sections of the Act. The penalties for such offences could vary, with maximum penalties depending on the severity of the breach and any relevant case law or guidelines.
Overall, the Tariff Concessions Revocation Instrument 88/2006 outlines the process for revoking and replacing TCOs due to tariff classification changes. It imposes specific duties on the CEO of Customs and requires adherence to the Customs Act 1901. While the instrument itself does not specify detailed penalties for breaches, the underlying Act provides a framework for potential enforcement actions and consequences for non-compliance.