Overview

The Tariff Concessions Revocation Instrument 90/2011 was enacted to address the issue of unused Tariff Concession Orders (TCOs) within the framework of the Customs Act 1901. This legislation was introduced to streamline and rationalise the tariff concessions system by revoking TCOs that have not been utilised for a continuous period of two years. The instrument was made under the authority of the Customs Act 1901 and was enacted by the Chief Executive Officer of Customs, who has the discretion to revoke TCOs that are no longer required. The policy objective behind this revocation is to ensure that tariff concessions are actively used and contributing to the intended economic purposes, thereby maintaining an efficient and effective customs duty regime. The revocation process outlined in the Tariff Concessions Revocation Instrument 90/2011 specifically targets TCO 0516043, which was revoked on 27 July 2011 as it had not been quoted in an import entry to secure a concessional rate of duty for two consecutive years. This action was taken without prior consultation, as the unused TCO was deemed not to impact any ongoing business operations. The revocation order became effective from the day the CEO determined that the TCO had not been used in the preceding two years, with the legislative instrument ensuring compliance despite any prohibitions on retrospective legislative actions.

Scope and Application

The Tariff Concessions Revocation Instrument No. 90/2011, made under the Customs Act 1901, pertains to the revocation of Tariff Concession Orders (TCOs) that have not been utilised for securing concessional rates of customs duty for a period of two years. Specifically, this instrument revokes TCO 0516043 as the Chief Executive Officer of Customs is satisfied that it has not been quoted in an import entry within the stipulated timeframe. The revocation is effective from the date the CEO became satisfied about the non-utilisation of the TCO. This legislative instrument applies to the goods and entities that were previously subject to the now-repealed TCO, thereby affecting those who sought to benefit from the lower customs duty rates provided under the now-revoked order. Although the instrument revokes a specific TCO, it does not extend to other TCOs unless similarly assessed and revoked by the CEO under the same provisions of the Customs Act 1901. The revocation is effective irrespective of any retrospective legislative prohibitions as per section 12 of the Legislative Instruments Act 2003.

Key Provisions

The Tariff Concessions Revocation Instrument No. 90/2011 primarily concerns the revocation of a Tariff Concession Order (TCO) under the Customs Act 1901. Specifically, section 269SD(1A) of the Act allows the Chief Executive Officer of Customs (the CEO) to revoke a TCO if satisfied that it has not been quoted in an import entry to secure a concessional rate of duty for the two years preceding the day of the CEO’s satisfaction (section 269SD(1A)). This instrument revokes TCO 0516043, effective from 27 July 2011, due to the TCO not being used in the preceding two years. The Act imposes specific obligations on the CEO concerning the administration of TCOs. Under section 269C, a TCO is made if an application meets the core criteria, which requires that on the day the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Moreover, section 269P provides that a lower rate of customs duty applies to goods subject to a TCO. The CEO is also tasked with ensuring that TCOs are revoked if they are no longer necessary, as stipulated in section 269SD(1A). Failure to adhere to the provisions of the Customs Act 1901 can lead to various consequences. Although the explanatory statement does not explicitly detail specific offences or penalties, breaches of the Act generally can result in significant civil or criminal penalties, depending on the nature and severity of the breach. For example, under section 246 of the Customs Act 1901, knowingly making a false statement or representation can attract a maximum penalty of 10,000 penalty units or imprisonment for five years, or both. The specifics of penalties for non-compliance with TCO provisions would be found in the relevant sections of the Customs Act itself. The Tariff Concessions Revocation Instrument No. 90/2011 ensures that the revocation process complies with the legislative framework. Subsection 269SD(6) ensures that the revocation order takes effect despite the prohibition in section 12 of the Legislative Instruments Act 2003, which generally restricts the making of retrospective legislative instruments. The instrument was made without consultation as the TCO had not been used in the preceding two years, thus not impacting any businesses.