EXPLANATORY STATEMENT

CEO Determination No. 1 of 2010

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 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 and Instrument

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 using the computer system known as the Integrated Cargo System (the ICS). 

The Chief Executive Officer of Customs (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 have to be made using the ICS. Movement applications made under section 119AA may be communicated to Customs using e-mail.

The ICS has been in operation since 2005 and initially did not contain the functionality whereby a claim for drawback could be electronically lodged with Customs and Border Protection.  However, recent enhancements to the ICS now allow claims for drawback to be made electronically using the ICS. 

The new Determination therefore extends the information technology requirements to the making of an electronic claim for drawback of import duty.  Such claims must also be made using the ICS.

CEO Determination No. 1 of 2010 repeals and replaces CEO Determination No. 1 of 2006.

Part 2 of the Determination continues the requirement to use e-mail to communicate electronic movement applications under section 119AA of the Customs Act.

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 and Part IX of the Customs Act.  These information technology requirements describe how to use the ICS and have not changed from CEO Determination No. 1 of 2006.

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. 1 of 2006.

Consultation

Customs and Border Protection has consulted extensively with people likely to be affected by this instrument, in accordance with section 126DA of the Customs Act.

Commencement

The instrument commences on the day after it is registered.