EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 96/2011
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(1A) of the Act provides that the CEO may revoke a TCO if he or she is satisfied on any day that a TCO is no longer required because, in the 2 years preceding that day, the TCO has not been quoted in an import entry to secure a concessional rate of duty.
Instrument
Tariff Concessions Revocation Instrument No. 96/2011 was made on 28 July 2011. It revokes TCO 0706654 as the CEO is satisfied that the TCO has not been used in the preceding 2 years.
Consultation
No consultation was undertaken. Since the TCO has not been used in the preceding 2 years, the revocation of the TCO will not have an effect on business.
Commencement
Subsection 269SD(1A) provides that the order revoking the TCO has effect from the day the CEO becomes satisfied that the TCO has not been used in the preceding 2 years.
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. 96/2011 revoked TCO 0706654 on 27 July 2011.
Overview
The Customs Act 1901 is the primary piece of legislation governing customs and excise duties in Australia, and the Tariff Concessions Revocation Instrument No. 96/2011 is an instrument that revokes a specific Tariff Concession Order (TCO) under this Act. Enacted in 2011, this instrument addresses the need to ensure that tariff concessions are actively utilised and serve their intended purpose of promoting Australian industry and trade. The revocation of TCO 0706654 was carried out by the Chief Executive Officer of Customs (CEO) under section 269SD(1A) of the Customs Act, based on the criterion that the TCO had not been quoted in an import entry to secure a concessional rate of duty for the two years preceding the revocation. The revocation took effect from the day the CEO became satisfied that the TCO had not been used, thus ensuring that tariff concessions remain relevant and effective. This legislative instrument was enacted without consultation, as the inactivity of the TCO for two years meant that its revocation would not impact business operations.
Scope and Application
The Tariff Concessions Revocation Instrument 96/2011 applies to the revocation of Tariff Concession Orders (TCO) under the Customs Act 1901. Specifically, this instrument concerns the revocation of TCO 0706654, which was revoked because it had not been used to secure a concessional rate of duty in any import entry over the preceding two years. This revocation is authorised under section 269SD(1A) of the Customs Act 1901, which allows the Chief Executive Officer of Customs to revoke a TCO if it has not been utilised in the specified period. The instrument revokes the TCO from the day the CEO became satisfied that it had not been used, in compliance with the Act and despite the prohibitions set out in section 12 of the Legislative Instruments Act 2003 regarding retrospective legislative instruments. This revocation is confined to the specific TCO 0706654 and does not extend to other TCOs or different types of concessions or duties.
Key Provisions
The Tariff Concessions Revocation Instrument 96/2011, under the Customs Act 1901, revokes Tariff Concession Order (TCO) 0706654. This revocation takes place because the Chief Executive Officer of Customs (CEO) has determined that the TCO has not been quoted in any import entry to secure a concessional rate of duty over the two years preceding 27 July 2011 (sections 269C, 269P, and 269SD(1A)). The key operative sections of the Customs Act that govern this revocation include sections 269C, 269P, and 269SD, which outline the criteria for making and revoking TCOs. Section 269C requires that a TCO is made if the application meets certain core criteria, primarily that no substitutable goods are produced in Australia at the time the application is lodged. Section 269P provides for the imposition of a lower rate of customs duty on goods subject to a TCO, and section 269SD(1A) empowers the CEO to revoke a TCO if it has not been used in the preceding two years.
The Act imposes specific obligations on the CEO, primarily the responsibility to monitor the usage of TCOs and to ensure that they remain necessary and relevant to the importing activities in Australia. The CEO must be satisfied that a TCO has not been used for a period of two years before revoking it (section 269SD(1A)). Additionally, the Act requires the CEO to follow the legislative process as outlined, including the ability to make the revocation order despite certain restrictions on retrospective legislative instruments (section 269SD(6)).
The Tariff Concessions Revocation Instrument 96/2011 does not outline specific offences or penalties for non-compliance within its text, but the broader Customs Act 1901 does provide for a range of penalties for breaches. These include civil penalties for incorrect declarations or fraudulent activities related to customs duty and criminal penalties for serious breaches, which can include substantial fines and imprisonment. The maximum penalties depend on the severity of the offence, with significant financial penalties and potential imprisonment for serious violations.