CEO Specification No. 2 of 2005

Administered by Attorney-General's Department

Legislation au F2005L02008 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

CEO Specification No. 2 of 2005

Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004

Section 6 of the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 (the Application Act) provides: “[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 the import cut-over time as the turn-off 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.  The Chief Executive Officer of Customs (the CEO) has specified that the import cut-over time be 2am in the Australian Capital Territory on 28 August 2005.

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.  If however, such a ship or aircraft does not actually arrive until at or after turn-off time, the ITM import amendments will apply.

The unamended Customs Act requires electronic reports relating to imports and the arrival of ships and aircraft to be made using the Sea Cargo Automation System (SCA), the Air Cargo Automation System (ACA) and COMPILE.

The turn-off time is the time that these systems will no longer be able to be used by importers, cargo reporters, operators of ships and aircraft etc to make these reports.

The CEO has specified that the turn-off time is 2am in the Australian Capital Territory on 7 October 2005.  This is the latest possible day that the CEO could specify.  The 40 day gap between import cut-over time and turn-off time will enable processes started in SCA, ACA and COMPILE to be completed in those systems.  This is because these systems will not be compatible with the ICS. 

In addition, some reports will still have to be made under the unamended Customs Act at or after turn-off time.  Division 3 of Part 2 of the Application Act sets out how the unamended Customs Act will operate after turn-off time.  For example, amendments of computer cargo reports will have to be made by document.

Since there are lower or no import processing charges for making electronic reports, the Import Processing Charges (Amendment and Repeal) Act 2002 will reduce or remove the charges that apply to documentary reports made under the unamended Customs Act at or after turn-off time.

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 allow the cut-over period to be extended until 12 October 2005 and turn-off time delayed until 21 November 2005 also 40 days apart.  This will allow communicators additional time to prepare and test their electronic systems.

Whilst it is proposed that the turn-off time will be delayed, the CEO has made CEO Specification No. 2 of 2005 to meet his current statutory obligation.

Consultation

The importing community and their agents have been consulted about the proposal to specify the turn-off time.

Commencement

The instrument commences on the day on which it was registered.

Overview

The Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 was enacted to address the transition issues arising from the implementation of the International Trade Modernisation (ITM) measures, specifically the shift from the old systems like the Sea Cargo Automation System (SCA), the Air Cargo Automation System (ACA), and COMPILE to the new Integrated Cargo System (ICS). This Act was passed by the Parliament of Australia to ensure a smooth transition for electronic communication with the Australian Customs Service (Customs), particularly concerning the importation of goods and the arrival of ships and aircraft. The policy objective was to mitigate potential disruptions caused by the sudden switch to the new system and to provide sufficient time for stakeholders to adjust and prepare their systems accordingly. CEO Specification No. 2 of 2005 was made under this Act to specify the exact dates for the commencement and cessation of the old systems, ensuring that there is a gap to allow for the completion of processes started in the old systems and to prevent any operational disruptions.

Scope and Application

The Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 applies to the importation of goods and the arrival of ships and aircraft in Australia, particularly in relation to the transition to the Integrated Cargo System (ICS) from the previous systems like the Sea Cargo Automation System (SCA), Air Cargo Automation System (ACA), and COMPILE. This legislation is applicable to importers, cargo reporters, and operators of ships and aircraft who need to communicate electronically with the Australian Customs Service. It is a Commonwealth Act, extending its jurisdictional reach across Australia. The Act specifies that the new requirements for electronic reporting will apply to ships and aircraft arriving at their first Australian port or airport at or after the designated import cut-over time, which was initially set for 2am in the Australian Capital Territory on 28 August 2005. However, a subsequent proposal extended this period until 12 October 2005, with the turn-off time for the old systems set for 21 November 2005. The Act also allows for certain exemptions and transitional provisions to ease the shift from the old systems to the new ICS.

Key Provisions

The Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004, particularly sections 6 and 7, mandates that the Chief Executive Officer (CEO) of Customs must specify a turn-off time not more than 40 days after the import cut-over time. This is to ensure a smooth transition to the new Integrated Cargo System (ICS) for electronic reporting of imports and the arrival of ships and aircraft. The import cut-over time has been set at 2am in the Australian Capital Territory on 28 August 2005, and the turn-off time has been specified as 2am on 7 October 2005. This timeframe allows for the completion of processes started under the previous systems, the Sea Cargo Automation System (SCA), the Air Cargo Automation System (ACA), and COMPILE, which will no longer be compatible with the ICS. The obligations imposed by this Act primarily revolve around the transition to the ICS for electronic reporting. Importers, cargo reporters, and operators of ships and aircraft must prepare and transition to the ICS by the import cut-over time. They must also ensure that any processes initiated under the old systems are completed before the turn-off time. The ICS is designed to streamline communication with the Australian Customs Service and is expected to reduce import processing charges for electronic reports compared to documentary reports. Failure to comply with the specified cut-over and turn-off times may lead to disruptions in import processes and potential penalties. Although the explanatory statement does not detail specific penalties, non-compliance could result in the continued use of the old systems after the turn-off time, which may incur higher charges for documentary reports. Importers and other stakeholders must ensure their electronic systems are ready for the transition to avoid these disruptions and additional costs. The explanatory statement highlights that the importing community and their agents have been consulted regarding the proposed turn-off time. This consultation process is essential to ensure that the new systems are practical and do not cause undue hardship on businesses reliant on timely imports. The Act aims to balance the need for modernisation with the practical considerations of the importing community.

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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.