EXPLANATORY STATEMENT
CEO Specification No. 3 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: “The CEO must, by legislative instrument, 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
On 15 July 2005, the CEO specified 2 am in the Australian Capital Territory on 7 October 2005 to be the turn-off time in CEO Specification No. 2 of 2005 to meet his statutory obligation. At that time, section 6 of the Application Act required the CEO to specify the turn-off time before the ITM import amendments commenced (which, not having been proclaimed earlier, commenced on 19 July 2005).
As was indicated in the Explanatory Statement to CEO Specification No. 2 of 2005, the Minister for Justice and Customs had announced that a Bill would be introduced into the Parliament during the 2005 Spring Sittings to allow the import cut-over time to be extended until 12 October 2005 and turn-off time delayed until 21 November 2005. This was to address the concerns of the importing community and their agents that they would not have the systems in place in time to communicate with Customs using the new Integrated Cargo System in relation to ships and aircraft (or goods on board) arriving on or after 2am in the Australian Capital Territory on 28 August 2005. The extra time would allow communicators additional time to prepare and test their electronic systems.
The Customs Amendment (Extension of Import Cut-over Time) Act 2005 repealed and substituted sections 5 and 6 of the Application Act. New section 5 set the import cut-over time as 2am in the Australian Capital Territory on 12 October 2005. The repeal and substitution of section 6 required the CEO to make a new legislative instrument to specify a new turn-off time.
In CEO Specification No. 3 of 2005 , the CEO has specified that the turn-off time is 2am in the Australian Capital Territory on 21 November 2005. This is the latest possible day that the CEO could specify under the legislation. 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 are not compatible with the ICS.
Consultation
The importing community and their agents have been consulted about the proposal to specify the turn-off time.
All electronic cargo reports, impending arrival and actual arrival reports for vessels and aircraft are now being made under the Integrated Cargo System (ICS). The Sea Cargo Automation and Air Cargo Automation systems will therefore be able to be turned off on 21 November 2005.
There are still some brokers and freight forwarders who have not been able to successfully move from the legacy system for import declarations (COMPILE) to the ICS. As at 14 November 2005, about 7% of declarations (Customs entries) were being submitted in COMPILE. Despite a concerted effort by Customs, software providers and the businesses concerned, a residual group of service providers do not expect to be able to conduct their business successfully in ICS by the turn-off time. If COMPILE were not available after 21 November 2005, and their clients were not able to quickly find other ways to make declarations to Customs, their imports might be impeded. The CEO has therefore made CEO Determination No. 2 of 2005 which provides that, for a group of brokers/forwarders, COMPILE will continue to be used as a contingency arrangement for a short period.
Commencement
The instrument commences on the day on which it is registered.