EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 49/2009
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 49/2009 was made on 26 November 2008. It revokes TCO 0708762 and makes TCO 0841242. The tariff classification has been changed from 5402.32.00 to 5402.31.00 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. 49/2009 revoked 0708762 and made new TCO 0841242 on 26 November 2008, with the Revocation date of effect as from 26 November 2008
Overview
The Tariff Concessions Revocation Instrument 49/2009, enacted under the Customs Act 1901, was introduced to address the need for adjusting tariff concessions due to changes in tariff classification. This instrument, made by the Chief Executive Officer of Customs on 26 November 2008, revoked Tariff Concession Order (TCO) 0708762 and established new TCO 0841242, reflecting a change in tariff classification from 5402.32.00 to 5402.31.00. The Act enables the CEO to make or revoke TCOs when certain criteria are met, such as when substitutable goods are not produced in Australia or when tariff classifications change. The policy objective of this revocation is to ensure that customs duty rates are accurately applied in line with the current tariff classification, thereby maintaining the integrity of the tariff concession scheme.
Scope and Application
The Tariff Concessions Revocation Instrument 49/2009 under the Customs Act 1901 applies to the revocation and reissuance of Tariff Concession Orders (TCOs) related to specific goods within the Australian jurisdiction. This instrument specifically addresses the revocation of TCO 0708762 and the creation of TCO 0841242, necessitated by a change in tariff classification from 5402.32.00 to 5402.31.00, which was due to an amendment in the Customs Tariff Act 1995. The instrument is enacted by the Chief Executive Officer of Customs, whose authority is derived from sections 269C and 269P of the Act, and it comes into effect from the date the tariff classification change became applicable. The new TCO 0841242 is effective from the date of revocation of the previous TCO. The instrument is a direct response to changes in tariff classifications, and it ensures that the correct customs duty rates apply to the specified goods, thereby maintaining the integrity of the tariff concession scheme.
Key Provisions
The Tariff Concessions Revocation Instrument 49/2009 under the Customs Act 1901 (sections 269C, 269P, 269SD) revokes Tariff Concession Order (TCO) 0708762 and establishes a new TCO, 0841242, effective from 26 November 2008. This action was necessitated by a change in the tariff classification, from 5402.32.00 to 5402.31.00, due to an amendment in the Customs Tariff Act 1995. The revocation of TCO 0708762 and the creation of TCO 0841242 were mandated under subsection 269SD(2) of the Act, which requires the Chief Executive Officer of Customs (CEO) to revoke a TCO if the tariff classification stated in the TCO no longer applies to the goods.
The obligations imposed by this Instrument are primarily on the CEO of Customs, who must ensure that the new tariff classification accurately reflects the current tariff status of the goods. The CEO must also ensure that the new TCO, 0841242, is made with effect from the revocation date. The new TCO must then be published to inform all relevant parties of the updated tariff classification and any changes in the duty rates applicable to the goods.
Breaches of the provisions outlined in this Instrument could lead to legal consequences, although specific offences and penalties are not detailed in the text. Generally, under the Customs Act 1901, non-compliance with tariff concessions can result in civil and criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The exact penalties would depend on the specific circumstances and any subsequent prosecutions. However, it is clear that the Instrument seeks to ensure that the tariff classifications are accurately maintained and applied to goods entering Australia, thereby maintaining the integrity of the customs duty regime.