Overview

The Tariff Concessions Revocation Instrument 90/2007 was enacted in 2007 under the Customs Act 1901. This instrument addresses the issue of revoking tariff concession orders when domestic production of substitutable goods begins. The instrument was created in response to a request by Qenos Pty Ltd for the revocation of Tariff Concession Order 0509438, which covers polyethylene terephthalate copolymer. The Chief Executive Officer of Customs revoked this order as they were satisfied that Qenos Pty Ltd had commenced production of substitutable goods in Australia, and that the tariff concession would not have been granted had this been the case. The revocation came into force on the date the request was lodged, despite legislative restrictions on retrospective legislative instruments. This action was taken by the Parliament of Australia, aiming to ensure that tariff concessions are only applied when truly necessary and that domestic industries are not unfairly disadvantaged.

Scope and Application

The Tariff Concessions Revocation Instrument 90/2007, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Order (TCO) 0509438, which originally covered polyethylene terephthalate copolymer. This instrument applies to Qenos Pty Ltd, a producer in Australia of goods that are substitutable to the goods covered by the revoked TCO. The revocation was made by the Chief Executive Officer of Customs, who was satisfied that the conditions for revocation, as outlined in the Customs Act, were met. Specifically, the CEO determined that Qenos Pty Ltd is a producer of substitutable goods in Australia and that if the TCO were not in force on the day the revocation request was lodged, it would not have been made in the first place. This revocation has immediate effect from the date the revocation request was made, 17 May 2007, and it aligns with the procedural requirements under the Act, including the mandatory publication of the request details in a Gazette as soon as practicable after receipt. This instrument does not extend beyond the scope defined by the Customs Act, which governs the making and revoking of TCOs within the Commonwealth jurisdiction.

Key Provisions

The Tariff Concessions Revocation Instrument 90/2007, made under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0509438 for polyethylene terephthalate copolymer. This revocation was prompted by a request from Qenos Pty Ltd, asserting their status as a producer of substitutable goods and arguing that if the application for TCO 0509438 had been lodged on the same day as the revocation request, the Chief Executive Officer (CEO) of Customs would not have issued the concession. Under sections 269SC(1) and 269SC(3) of the Customs Act, the CEO is mandated to revoke a TCO if satisfied that the requesting party is a producer of substitutable goods in Australia and that the TCO would not have been granted on the day the request was made. Entities subject to the Customs Act, including those seeking to revoke TCOs, must adhere to specific obligations. They must demonstrate their capacity to produce substitutable goods in Australia and provide evidence that, if the application for the TCO had been made on the day the revocation request was lodged, the CEO would not have made the concession. Additionally, the CEO is required to publish a notice in the Gazette detailing the request for revocation and the specifics of the TCO in question, as stipulated in subsection 269SC(1A) of the Act. This ensures transparency and allows for public comment on the proposed revocation. The revocation of a TCO under this Instrument does not carry specific criminal or civil penalties for breach. Instead, the consequences of such revocation primarily affect the tariff rates applicable to the goods covered by the TCO. For instance, the revocation of TCO 0509438 means that the lower rate of customs duty previously applied to polyethylene terephthalate copolymer will no longer be in effect, potentially increasing the duty rates for imported goods in this category. The Instrument’s provisions focus on adjusting tariff rates in response to changes in domestic production capabilities rather than imposing punitive measures for non-compliance.