EXPLANATORY STATEMENT
CEO AMENDMENT OF INFORMATION TECHNOLOGY REQUIREMENTS DETERMINATION NO. 1 OF 2011
Customs Act 1901
Subsection 126DA(1) of the Customs Act 1901 (the Customs Act) provides that after consulting with persons likely to be affected, the Chief Executive Officer of Customs (the CEO) must determine, and cause to be published in the Gazette:
a) the information technology requirements that have to be met by persons who wish to communicate with Customs electronically; and
b) the information technology requirements that have to be met to satisfy a requirement that a person's signature be given to Customs in connection with information when the information is communicated electronically; and
c) the information technology requirements that have to be met to satisfy a requirement that a document be produced to Customs when the document is produced electronically.
Subsection 126DA(2) allows the CEO to determine alternative information technology requirements that may be used including different information technology requirements that may be used in different circumstances or by different classes of persons.
Background
Section 126DA was inserted into the Customs Act by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act). The Customs Act was amended by the ITM Act to create the legal foundations for communicating electronically with Customs and Border Protection using the computer system known as the Integrated Cargo System (the ICS).
The CEO has determined information technology requirements under subsection 126DA(1) so that all electronic communications (except movement applications made under section 119AA of the Customs Act) relating to the exportation of goods, the departure of ships and aircraft from Australia, imported goods and the arrival of ships and aircraft in Australia had to be made using the ICS.
Electronic movement applications made under section 119AA may be communicated to Customs and Border Protection using e-mail. This is because the ICS does not presently have the functionality to deal with these types of applications. An application under section 119AA relates to goods for export and that are under the control of Customs under paragraphs 30(1)(b),(c) (d) of the Customs Act. An application can be made to Customs under section 119AA to move, alter or interfere with such goods in a particular way.
Under the Customs Amendment (Export Controls and Other Measures) Act 2011 (the Exports Act), a new category of goods for export will be added to Customs control. These are goods that were originally for export, but are no longer for export. To increase the level of security in the export cargo environment, the Exports Act will strengthen Customs control over such goods by introducing a new regime whereby such goods can only be moved, altered or interfered with in accordance with Customs permission.
These new applications will be made under new section 119AB of the Customs Act either by document or electronically. Similar to movement applications under section 119AA, the ICS does not have the functionality to also deal with the electronic version of these new types of applications.
The information technology requirements have been amended to provide that the electronic version of the movement applications under new section 119AB may also be communicated to Customs and Border Protection using e-mail.
Instrument
CEO Amendment of Information Technology Requirements Determination No. 1 of 2011 amends CEO Determination No. 2 of 2010.
Part 2 of the Determination will now include the requirement to use e-mail to communicate electronic movement applications under section 119AA and section 119AB of the Customs Act. It also allows e-mail to be used to communicate an import declaration under section 71A of the Act in respect of goods that are intended to be entered for home consumption and that are imported into Australia through the Post.
Part 3 of the Determination sets out the information technology requirements for all other electronic communications with Customs made under Division 3 or 4 of Part IV or Division 2 of Part VI or section 163 of the Customs Act or Part IX of the Customs Act. These information technology requirements describe how to use the ICS and have not changed from CEO Determination No. 2 of 2010.
Part 4 of the Determination sets out the information technology requirements that have to be met to satisfy a requirement that a document be produced to Customs when the document is produced electronically. These information technology requirements also have not changed from CEO Determination No. 2 of 2010.
Consultation
Further to previous public consultation (refer ACN No. 2011/04) in relation to the Customs Amendment (Export Controls and Other Measures) Act 2011, Customs and Border Protection subsequently sought comments from internal and external stakeholders on the proposed business processes implementing the legislative changes to export controls. These processes include the amendments to the information technology requirements.
As part of this consultation process, a letter detailing the legislative changes and a draft Fact Sheet with an overview of the proposed business processes were distributed directly to relevant industry representatives on 6 September 2011. The documents were also posted on the Customs and Border Protection website for public comment by 16 September 2011.
The Fact Sheet specified the purposes and usage of the B959 as approved form and an approved statement for the purposes of communicating a documentary and an electronic requirement for the delivery of documents or information in respect of an export declaration in accordance with sections 119AA and 119AB of the Act.
No adverse comments were received in relation to the amendments to the information technology requirements.
Commencement
The instrument commences on the commencement of Schedules 1 and 2 to the Customs Amendment (Export Controls and Other Measures) Act 2011. This date is to be determined by Proclamation.