EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 92/2006
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 92/2006 was made on 01 November 2006. It revokes TCO 9703764 and makes TCO 0614844. 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. 92/2006 revoked TCO 9703764 and made new TCO 0614844 on 01 November 2006.
Overview
The Tariff Concessions Revocation Instrument 92/2006, enacted on 01 November 2006, addresses the need to revise and update tariff concessions under the Customs Act 1901. This legislative instrument was introduced to ensure that the tariff classifications applied to specific goods remain current and accurate, in line with changes in the Customs Tariff Act 1995 or decisions made by the Administrative Appeals Tribunal. The revocation of Tariff Concession Order 9703764 and the introduction of Tariff Concession Order 0614844 reflect this need, adjusting the tariff classification for the affected goods from 8527.90.90 to 8527.39.00. The Australian Parliament, through the Chief Executive Officer of Customs, enacted this instrument to maintain the integrity and effectiveness of the tariff concession scheme. The underlying policy objective is to ensure that the tariff classifications remain aligned with legislative changes and court decisions, thereby supporting fair and efficient customs administration.
Scope and Application
The Tariff Concessions Revocation Instrument 92/2006, made under the Customs Act 1901, concerns the revocation of Tariff Concession Order (TCO) 9703764 and the issuance of new TCO 0614844, effective from 1 November 2006. This instrument applies to the specific goods previously covered by TCO 9703764, whose tariff classification has been altered from 8527.90.90 to 8527.39.00. The Act governs the process through which the Chief Executive Officer of Customs may make and revoke TCOs to allow for lower customs duty rates on certain goods not produced in Australia. This legislative instrument is limited to the particular goods and tariff classifications affected by the change and does not extend to any other goods or classifications. The revocation and issuance of the new TCO are triggered by changes in tariff classification due to amendments to the Customs Tariff Act 1995 or court decisions, as outlined in the Act. The commencement of the new order is governed by subsection 269SD(2), ensuring the changes take effect from the date the previous tariff classification ceased to apply to the goods, which can be on or after the original TCO came into force.
Key Provisions
The Tariff Concessions Revocation Instrument 92/2006 under the Customs Act 1901 (sections 269C, 269P, and 269SD) is a legislative instrument that revokes Tariff Concession Order (TCO) 9703764 and establishes a new TCO 0614844. This action was taken because the tariff classification for the goods specified in TCO 9703764 changed from 8527.90.90 to 8527.39.00. The instrument, which came into effect on 1 November 2006, follows the requirement that a TCO must be revoked if it no longer applies to the goods due to changes in tariff classification or decisions made by courts or Customs officers. The new TCO 0614844 reflects this updated classification.
The Act imposes several obligations on the parties affected by these tariff concession orders. Firstly, it mandates that the Chief Executive Officer of Customs (CEO) must ensure that TCOs are only made when no substitutable goods are being produced in Australia, as outlined in section 269C. Additionally, the CEO must revoke a TCO and issue a new one if the tariff classification of the goods changes, as specified in section 269SD. These obligations are critical for maintaining the integrity of the customs duty regime and ensuring that tariff concessions are accurately applied based on current classifications.
Failure to comply with the provisions of the Customs Act 1901 or the terms of a TCO can lead to significant consequences. Although the Explanatory Statement does not detail specific offences or penalties, breaches of customs legislation typically result in civil or criminal penalties. These can include fines, imprisonment, or both, depending on the nature and severity of the breach. For example, knowingly making a false statement in an application for a TCO could lead to criminal charges, while a minor administrative error might result in a civil penalty. The exact penalties would be determined based on the specific circumstances of the breach and relevant sections of the Customs Act.