EXPLANATORY STATEMENT
CEO Specification No. 1 of 2005
Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004
Section 5 of the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 (the Application Act) provides that: “[b]efore the ITM import amendments commence, the CEO must, by notice published in the Gazette, specify a time not more than 40 days (including Sundays and holidays) after those amendments commence as the import cut-over time.”
Background and Instrument
The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) amends the Customs Act 1901 (the Customs Act) to, amongst other things, create the legal foundations for communicating electronically with the Australian Customs Service (Customs) using a new computer system known as the Integrated Cargo System (the ICS). In order to allow people who want to communicate with Customs electronically time to prepare the relevant systems, the amendments in the ITM Act have been proclaimed to commence progressively.
The amendments relating to the importation of goods and the arrival of ships and aircraft in Australia (the ITM import amendments) have been proclaimed to commence on 19 July 2005.
Section 7 of the Application Act provides, in part, that the ITM import amendments apply to reports relating to the impending arrival, arrival and unloading of goods from a ship or aircraft if the ship or aircraft is due to arrive at its first port or airport in Australia at or after import cut-over time. This includes the requirement to use the ICS to make electronic reports to Customs. A ship or aircraft that is due to arrive at its first port or airport in Australia before import cut-over time is subject to the requirements in the Customs Act before the ITM import amendments commence (the unamended Customs Act). Section 7 also sets out what requirements apply if the ship or aircraft arrives earlier or later than expected.
Similarly, section 8 of the Application Act provides, in part, that the ITM import amendments apply to imported goods that are on board a ship or aircraft that is due to arrive at its first port or airport in Australia from a place outside Australia at or after the import cut-over time. This covers for example, the requirement to enter goods for home consumption or warehousing. Again, the unamended Customs Act will continue to apply to goods on board a ship or aircraft that is due to arrive at its first port or airport in Australia from a place outside Australia before the import cut-over time.
The Chief Executive Officer of Customs (the CEO) has specified that the import cut-over time is 2 am in the Australian Capital Territory on 28 August 2005. This is the latest possible day that the CEO could specify.
However, it is a strongly held view of the importing community and their agents that they will not have the systems in place in time to communicate using the ICS in relation to ships and aircraft (or goods on board them) arriving on or after 2am in the Australian Capital Territory on 28 August 2005. This situation would result in severe disruption at all major ports and airports that deal with import cargo as well as having a major impact on Australian business and manufacturing dependent on imports.
Hence, the Minister for Justice and Customs has announced that a Bill will be introduced into the Parliament during the 2005 Spring Sittings to extend the period between the commencement of the ITM import amendments and the import cut-over time and to specify the import cut-over time as 2am in the Australian Capital Territory on 12 October 2005. This will allow communicators additional time to prepare and test their electronic systems.
Whilst it is proposed that the import cut-over time will be changed, the CEO has made CEO Specification No. 1 of 2005 to meet his current statutory obligation.
Consultation
The importing community and their agents have been consulted about the proposal to specify the import cut-over time.
Commencement
The instrument commences on the day on which it was registered.