Bills Digest no. 25 2006–07
Customs Amendment (2007 Harmonized System Changes) Bill
2006
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
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Bill.
CONTENTS
Passage History
Purpose
Background
Financial implications
Main Provision
Endnotes
Contact Officer & Copyright Details
Passage History
Customs Amendment (2007 Harmonized
System Changes) Bill 2006
Date introduced: 7 September 2006
House: House of
Representatives
Portfolio: Justice and Customs
Commencement: On Royal Assent.
To amend the powers of the Chief
Executive Officer of the Australian Customs Service under the
Customs Act 1901 in order to facilitate the introduction
of agreed changes to the international Harmonized Commodity
Description and Coding System.
This is a companion Bill to the
Customs Tariff Amendment (2007 Harmonized System Changes) Bill
2006. Both Bills are designed to implement revised Australian
customs tariff classifications resulting from agreed changes to the
international Harmonized Commodity Description and Coding System
(the Harmonized System). Background to the Harmonized System and
the rationale for the changes are contained in the Digest
for the Customs Tariff Amendment (2007 Harmonized System Changes)
Bill 2006.(1)
This Bill deals with the ability of the Chief Executive Officer
of the Australian Customs Service (Customs CEO) to issue Tariff
Concession Orders, or TCOs, under the Customs Act 1901. A
TCO may be issued on imported goods if equivalent ( substitutable )
goods are not produced in Australia. Substitutable goods are
Australian-made goods which have a use corresponding to a use of
the imported goods. A TCO can be granted to allow the duty-free
entry of goods into Australia.(2)
Section 269SD of the Customs Act 1901 deals with the
revocation of TCOs at the initiative of Customs. In case of changes
to tariff classifications, the drafting of subsection 269SD(2)
currently allows the Customs CEO to revoke a TCO, and issue a
replacement TCO, only after the classification change has
come into force. In respect of the changes discussed in the Digest
to Customs Tariff Amendment (2007 Harmonized System Changes) Bill
2006, the Explanatory Memorandum to this Bill comments:
This means that the CEO could only exercise this
power after 1 January 2007. Therefore, in order to ensure the
seamless application of TCOs to goods before and after 1 January
2007, and to avoid any uncertainty as to the application of TCOs to
goods, it is proposed to amend the Customs Act to give the CEO the
power to revoke a TCO, and make a replacement TCO, as a result of a
tariff classification change prior to the tariff classification
change taking effect. Current TCOs would be revoked with effect
from 1 January 2007 and the new TCOs would also take effect from
that day.(3)
The number of TCOs that will have to
revoked and replaced is around 700.(4)
Financial implications
The Bill will have no financial impact on the Commonwealth.
Item 1 inserts a new subsection
269SD(2) into the Customs Act 1901 to allow the
Customs CEO to revoke a TCO, and issue a replacement TCO, before
the relevant tariff classification change takes effect. The
replacement TCO would only come into force on the day of the tariff
classification change taking effect.
- No. 24, 2006-07.
- See
http://www.customs.gov.au/webdata/resources/files/FS_tariffConSys_050927.pdf
- Explanatory Memorandum p. 5.
- ibid.
Angus Martyn
13 September 2006
Bills Digest Service
Parliamentary Library
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ISSN 1328-8091
© Commonwealth of Australia 2006
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Published by the Parliamentary Library, 2006.
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