EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 50/2009
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 50/2009 was made on 12 February 2009. It revokes TCO 0810247 and makes TCO 0904690. The tariff classification has been changed from 8479.89.90 to 8421.21.90 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. 50/2009 revoked 0810247 and made new TCO 0904690 on 12 February 2009, with the Revocation date of effect as from 27 May 2008
Overview
The Customs Act 1901, enacted by the Australian Parliament, established a framework for the imposition of customs duties on imported goods. To provide tariff relief, the Act allows for the issuance of Tariff Concession Orders (TCOs) by the Chief Executive Officer of Customs, which can lower the duty rate on certain goods under specific conditions. The Tariff Concessions Revocation Instrument 50/2009 was introduced to address a gap where tariff classifications of goods subject to a TCO had changed, necessitating a revocation of the existing order and the issuance of a new one to reflect the updated tariff classification. This instrument was made to align with the Customs Act's provisions that require the revocation of a TCO if the tariff classification stated in it no longer applies to the goods, ensuring the duty rates remain accurate and consistent with the current tariff schedule.
Scope and Application
The Tariff Concessions Revocation Instrument 50/2009, made under the Customs Act 1901, applies to goods that were previously subject to Tariff Concession Order (TCO) 0810247. The Act facilitates the revocation and re-establishment of TCOs when changes in tariff classifications, court decisions, or administrative advice necessitate adjustments to the applicable duty rates on specific goods. The revocation of TCO 0810247 and the establishment of TCO 0904690 took effect from 27 May 2008, reflecting the new tariff classification due to a change in the Customs Tariff Act 1995. This instrument applies to entities and persons involved in the importation of goods affected by the altered tariff classification, ensuring that the correct duty rates are applied from the specified date. The geographical reach of this legislation is national, encompassing all jurisdictions within Australia, as the Customs Act 1901 operates on a Commonwealth level. The revocation and re-establishment of the TCO are governed by sections 269C, 269P, and 269SD of the Act, which detail the conditions under which such changes can be made by the Chief Executive Officer of Customs. The legislative instrument itself notes that no consultation was necessary for this minor, machinery-type change.
Key Provisions
The Tariff Concessions Revocation Instrument 50/2009 (sections 269C and 269P) under the Customs Act 1901 allows the Chief Executive Officer of Customs to revoke existing Tariff Concession Orders (TCO) and issue new ones when necessary. Specifically, section 269SD(2) mandates the revocation of a TCO if it is determined that the tariff classification stated in the TCO no longer applies to the goods due to an amendment in the Customs Tariff Act 1995, a court decision, or written advice from a Customs officer. This process ensures that the tariff concessions remain aligned with current tariff classifications.
The obligations imposed by the Act on the parties or entities it governs include the requirement for the CEO to carefully monitor tariff classifications and make necessary adjustments. This involves reviewing applications for TCOs to ensure they meet the core criteria, such as the absence of substitutable goods produced in Australia at the time of application. Additionally, the CEO must act promptly to revoke and reissue TCOs when tariff classifications change, ensuring compliance with the Act’s provisions.
Failure to comply with the requirements set out in the Customs Act 1901 can lead to various penalties and consequences. While specific penalties are not detailed in the explanatory statement, breaches of the Act generally may result in civil or criminal penalties, including fines and potential imprisonment, depending on the severity of the violation. The Act’s provisions are designed to maintain the integrity of the tariff concession scheme and ensure that the correct rates of customs duty are applied to imported goods.