EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 91/2006
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 91/2006 was made on 01 November 2006. It revokes TCO 9703759 and makes TCO 0614835. The tariff classification has been changed from 8527.90.90 to 8527.39.00.
Consultation
No consultation was undertaken since the change is of a 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. 91/2006 revoked TCO 9703759 and made new TCO 0614835 on 01 November 2006.
Overview
The Tariff Concessions Revocation Instrument 91/2006, enacted under the Customs Act 1901, was introduced to address the need for updating tariff classifications for goods subject to Tariff Concession Orders (TCOs). The Chief Executive Officer of Customs is empowered under the Act to make and revoke TCOs, which apply reduced customs duties to specific goods provided they are not produced in Australia. This particular instrument was necessitated by changes to the tariff classification of certain goods, as stipulated under sections 269C and 269P of the Act, and following subsection 269SD(2), which mandates the revocation of a TCO when its tariff classification no longer applies due to amendments or judicial decisions. The policy objective is to ensure that tariff concessions remain accurate and aligned with the prevailing tariff classifications. The instrument was made on 01 November 2006, and it revoked TCO 9703759, replacing it with TCO 0614835, reflecting the updated tariff classification from 8527.90.90 to 8527.39.00.
Scope and Application
The Tariff Concessions Revocation Instrument 91/2006 operates under the Customs Act 1901, specifically addressing Tariff Concession Orders (TCOs) that alter the rates of customs duty for particular goods. This legislation applies to any goods that are subject to a TCO, which is typically made when no substitutable goods are produced in Australia in the ordinary course of business. The instrument is pertinent to entities and individuals who import or export goods affected by the changes in tariff classifications. The instrument was made by the Chief Executive Officer of Customs, exercising their authority under sections 269C, 269P, and 269SD of the Customs Act 1901. This instrument revokes TCO 9703759 and establishes TCO 0614835, effective from 01 November 2006, reflecting a change in tariff classification from 8527.90.90 to 8527.39.00. The instrument’s jurisdictional reach is national, as it pertains to the entire Commonwealth of Australia. The instrument does not include any exclusions or exemptions from its application, and its scope is limited to the specific goods and classifications mentioned. Any further application or restrictions are to be defined through subordinate instruments, which may extend or restrict the application of this legislation.
Key Provisions
The Tariff Concessions Revocation Instrument 91/2006, made under the Customs Act 1901, primarily concerns the revocation of Tariff Concession Order (TCO) 9703759 and the creation of a new TCO 0614835. This legislative instrument was enacted on 1 November 2006, and it results in a change of tariff classification for certain goods from 8527.90.90 to 8527.39.00. Section 269SD(2) of the Customs Act 1901 necessitates the revocation of a TCO if the tariff classification no longer applies to the goods due to amendments in the Customs Tariff Act 1995, a court decision, or advice from a Customs officer.
This Act imposes specific obligations on the Chief Executive Officer of Customs (CEO) to ensure compliance with the revised tariff classifications. The CEO is required to make the revocation order and issue a new TCO under section 269SD(2) of the Act, which mandates that the new TCO should be in effect from the day of revocation. Furthermore, the CEO must ensure that the changes align with the conditions stipulated in the Customs Act 1901, particularly considering that the new order must not be retrospective as per section 12 of the Legislative Instruments Act 2003.
Failure to comply with the provisions of the Customs Act 1901 can lead to significant consequences. While the exact nature of the penalties is not detailed in the explanatory statement, breaches of the Act may result in both civil and criminal penalties. The Act empowers the CEO to take necessary actions, including the imposition of fines or other penalties, to enforce compliance. It is crucial for parties involved to adhere strictly to the new tariff classifications and the procedural requirements outlined in the Act to avoid any legal repercussions.
The Tariff Concessions Revocation Instrument 91/2006 thus not only modifies the tariff classification for certain goods but also delineates clear responsibilities and potential penalties for non-compliance. The CEO's role in ensuring these changes are implemented correctly is central to the effectiveness of the legislative instrument. Parties subject to the Act must familiarize themselves with the new TCO and its implications to avoid any legal issues arising from non-compliance.