EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 93/2007
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 93/2007 was made on 14 May 2007. It revokes TCO 0403482 and makes TCO 0705897. The tariff classification has been changed from 8419.81.90 to 8514.20.00 because of a 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. 93/2007 revoked 0403482 and made new TCO 0705897 on 14 May 2007.
Overview
The Tariff Concessions Revocation Instrument 93/2007, made under the Customs Act 1901, was introduced to address the issue of tariff classification changes that affect the application of Tariff Concession Orders (TCOs). Enacted on 14 May 2007, this instrument was established to ensure that the customs duty rates applied to certain goods remain accurate and reflective of current tariff classifications. The Chief Executive Officer of Customs is responsible for revoking existing TCOs and issuing new ones when necessary, as outlined in sections 269C, 269P, and 269SD of the Act. The policy objective of this instrument is to maintain the integrity of the tariff concession scheme by adjusting TCOs in response to changes in the Customs Tariff Act 1995 or decisions made by the Administrative Appeals Tribunal, as well as written advice from Customs officers. The revocation and creation of new TCOs are effective from the day the tariff classification no longer applies to the goods, ensuring that the concessions remain relevant and effective.
Scope and Application
The Tariff Concessions Revocation Instrument 93/2007 operates under the Customs Act 1901 and specifically addresses the revocation of Tariff Concession Orders (TCOs). This instrument is applicable to any goods that were previously subject to a TCO and now require a revised tariff classification due to changes in the Customs Tariff Act 1995, decisions of the Administrative Appeals Tribunal, or written advice from Customs officers. The instrument directly impacts entities and individuals involved in the importation of these goods, necessitating compliance with the new tariff classification. Geographically, the instrument's application extends throughout Australia, as it is a Commonwealth instrument that adheres to the provisions outlined in the Customs Act 1901. The revocation and creation of new TCOs take effect from the day the previous tariff classification no longer applies to the goods, ensuring timely adjustments to tariff rates. There were no exclusions or exemptions noted in the creation of this instrument, and no consultation was deemed necessary as the changes were considered minor and of a machinery nature.
Key Provisions
The Tariff Concessions Revocation Instrument 93/2007 primarily operates under sections 269C, 269P, and 269SD of the Customs Act 1901. It revokes an existing Tariff Concession Order (TCO) and establishes a new TCO, reflecting a change in tariff classification for specific goods. This change occurs when a tariff classification amendment or a court decision necessitates a revision in how goods are classified for customs duty purposes. The instrument revokes TCO 0403482 and establishes TCO 0705897, altering the tariff classification from 8419.81.90 to 8514.20.00 due to a change in the tariff classification.
Entities subject to this instrument, such as importers and exporters, must comply with the new TCO by adhering to the updated tariff classification for the specified goods. This requirement involves ensuring that the new classification is correctly applied in all customs declarations and related documentation. Non-compliance with the new TCO can lead to incorrect duty payments, which may result in penalties or additional charges.
Failure to comply with the new TCO can result in various civil or criminal consequences. The Customs Act 1901 may impose penalties for incorrect tariff classifications, which can include financial penalties or fines. The exact penalty depends on the severity of the non-compliance and whether it was deliberate or accidental. Under section 269SD, the penalties for breaching the new TCO can be substantial, reinforcing the importance of adhering to the updated tariff classifications.
The Tariff Concessions Revocation Instrument 93/2007 is designed to ensure that tariff classifications remain accurate and reflect any changes in legislation or court decisions. It ensures that the correct rates of customs duty are applied to goods, maintaining the integrity of the customs duty system. The instrument's provisions also provide clarity and legal certainty for parties involved in the importation and exportation of goods, ensuring they are aware of and comply with the current tariff classifications.