CEO Amendment of Information Technology Requirements Determination No. 1 of 2011

Administered by Attorney-General's Department

Legislation au F2011L02440 Not in force Legislative Instrument

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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.

 

Overview

The CEO Amendment of Information Technology Requirements Determination No. 1 of 2011 amends the information technology requirements established under the Customs Act 1901, responding to the need for modernised electronic communication with the Australian Customs and Border Protection. Enacted by the Chief Executive Officer of Customs, this amendment seeks to address the gap created by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, which established the legal framework for electronic communication using the Integrated Cargo System. This determination allows for the use of e-mail to communicate specific movement applications under sections 119AA and 119AB of the Customs Act, and import declarations for goods intended for home consumption imported through the Post. This amendment aligns with the policy objective of enhancing security and efficiency in the export cargo environment, as introduced by the Customs Amendment (Export Controls and Other Measures) Act 2011. The changes were subject to consultation with relevant stakeholders, with no adverse comments received regarding the amendments to the information technology requirements.

Scope and Application

The CEO Amendment of Information Technology Requirements Determination No. 1 of 2011 amends the information technology requirements for electronic communications with Customs as outlined in the Customs Act 1901. This Determination applies to persons and entities that need to communicate electronically with Customs, including those involved in the exportation of goods, the departure of ships and aircraft from Australia, imported goods, and the arrival of ships and aircraft in Australia. The amendment allows for electronic movement applications under sections 119AA and 119AB of the Customs Act to be communicated via email, as the Integrated Cargo System (ICS) does not currently support this functionality. This Determination also maintains the existing requirements for other electronic communications with Customs, which involve the use of the ICS. The geographic reach of this legislation is national, applying across Australia as it is a Commonwealth Act. There are no specific exclusions or exemptions mentioned within this Determination, though the existing provisions of the Customs Act would apply. The Determination extends the application through subordinate instruments by amending the previous CEO Determination No. 2 of 2010 to include new requirements for electronic communications under the Customs Amendment (Export Controls and Other Measures) Act 2011.

Key Provisions

The CEO Amendment of Information Technology Requirements Determination No. 1 of 2011 (the Determination) sets out the specific information technology requirements for electronic communication with Customs under the Customs Act 1901. Section 126DA(1) of the Customs Act mandates that the Chief Executive Officer of Customs (the CEO) must determine and publish the IT requirements for electronic communication, signatures, and document production (subsection 126DA(1)(a)-(c)). The Determination amends these requirements, allowing for alternative IT solutions in various circumstances or for different classes of persons (subsection 126DA(2)). The main changes are outlined in Parts 2 and 3 of the Determination. Part 2 permits the use of email for specific electronic movement applications under sections 119AA and 119AB of the Customs Act, as well as for import declarations under section 71A for goods intended for home consumption imported via the Post. Part 3 maintains the existing IT requirements for other electronic communications with Customs using the Integrated Cargo System (ICS) as stipulated in CEO Determination No. 2 of 2010. Parts 4 of the Determination retains the unchanged IT requirements for electronically produced documents. The Determination imposes several obligations on parties and entities that must comply with these IT requirements when communicating electronically with Customs. These obligations include using the ICS for all electronic communications related to exportation, import goods, and the movement of ships and aircraft, except for specific movement applications under sections 119AA and 119AB, which can be communicated via email. Import declarations for goods entering for home consumption via the Post can also be communicated via email. All parties must adhere to the IT specifications and protocols set out in Parts 3 and 4 of the Determination for document production and other electronic communications with Customs. Failure to comply with these IT requirements may result in delays, refusals, or other adverse actions by Customs. Breach of the IT requirements set out in the Determination can result in various civil and criminal consequences. While the Determination itself does not specify penalties, non-compliance with the Customs Act can lead to administrative penalties, fines, and even criminal charges in serious cases. For instance, under section 178 of the Customs Act, failure to comply with a requirement or direction can result in a penalty of up to 10,000 penalty units (currently AUD 1.85 million) for individuals and 50,000 penalty units (currently AUD 9.25 million) for corporations. Additionally, section 179 of the Customs Act provides for imprisonment for up to two years for breaches involving serious misconduct. These penalties underscore the importance of adhering to the IT requirements outlined in the Determination.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.