EXPLANATORY STATEMENT
AMENDMENT OF approved statement INSTRUMENT NO. 1 OF 2013
Customs Act 1901
Subsection 4A(1A) of the Customs Act 1901 (the Act) defines an approved statement as a statement that is approved, by instrument in writing, by the Chief Executive Officer of Customs (the CEO). Subsection 4A(2) of the Act provides that the instrument by which a statement is approved, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. Under paragraph 6(d) of the Legislative Instruments Act 2003, approved statements are legislative instruments.
Background
Section 64AB of the Act requires a cargo report to be provided in relation to a ship or aircraft on a voyage or flight to Australia from a place outside Australia. Subsection 64AB(4B) provides that an electronic cargo report must communicate such information as is set out in an approved statement.
CEO Instrument of Approval No. 2 of 2006 approved the “CARGO REPORT (AIR)” as an approved statement for the purposes of communicating electronically a cargo report in relation to an aircraft in accordance with section 64AB of the Act. This report consists of 38 separate fields of information which a cargo reporter is required to provide to Customs and Border Protection.
Recently, the Conference of Asia Pacific Air Couriers (CAPEC) requested the addition of a new field to the cargo report for goods imported into Australia by air, and other Customs and Border Protection instruments. This new field will also be added to this cargo report and the import declaration, the warehouse declaration and self-assessed clearance documents (SACs).
This new field number 39 in the “CARGO REPORT (AIR)”, entitled Consignment Reference, contains a reference assigned by a cargo reporter that, in combination with a House Air Waybill number, will identify cargo of a particular consignment. This will assist with the reporting and clearance of part shipments that occur when a single air cargo consignment unintentionally arrives over two or more flights. This reference will enable the Integrated Cargo System (the ICS) to link an import declaration to cargo reports that use the same House Air Waybill number but different Master Air Waybill numbers.
Amendment of Approved Statement Instrument No. 1 of 2013 makes the above amendments to the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)”.
Consultation
The Conference of Asia Pacific Air Couriers was consulted in the preparation of this instrument. No additional consultation was undertaken under section 17 of the Legislative Instruments Act 2003 before this instrument was made as it is of a minor or machinery nature and does not substantially alter existing arrangements.
Human Rights Implications
This by-law does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Commencement
The instrument commences on the 3 February 2013.
Michael Pezzullo, Acting Chief Executive Officer,
Australian Customs and Border Protection Service
Overview
The Customs Act 1901, as amended by the instrument F2013L00133, addresses the need to update the cargo reporting requirements for aircraft bringing goods into Australia. This amendment was enacted to improve the accuracy and efficiency of cargo reporting and clearance processes. The instrument was approved by the Acting Chief Executive Officer of the Australian Customs and Border Protection Service, Michael Pezzullo, and commenced on 3 February 2013. It introduces a new field, Consignment Reference, in the cargo report to better identify and manage part shipments that span multiple flights, thereby enhancing the capability of the Integrated Cargo System to link import declarations with cargo reports. This change was made in response to a request from the Conference of Asia Pacific Air Couriers and aims to streamline the reporting and clearance of air cargo by providing a more precise method of tracking individual consignments.
Scope and Application
The Customs Act 1901, as amended by the AMENDMENT OF approved statement INSTRUMENT NO. 1 OF 2013, applies to individuals and entities engaged in the import and export of goods into and out of Australia, particularly focusing on the electronic submission of cargo reports for air shipments. The Act and its amendments specifically target the industries and conduct involved in the transportation of goods by air, ensuring that they comply with the requirements for reporting and clearance set forth by Australian Customs and Border Protection. The amendments extend to national jurisdiction, affecting all air cargo entering Australia, and are applicable across the Commonwealth. The Act does not specify exclusions or thresholds but focuses on the enhancement of reporting mechanisms through the addition of a new field, Consignment Reference, to the cargo report. This addition is designed to streamline the process for reporting and clearing part shipments that may arrive over multiple flights. The amendments are implemented through subordinate instruments approved by the Chief Executive Officer of Customs and are considered legislative instruments under the Legislative Instruments Act 2003. The instrument took effect on 3 February 2013.
Key Provisions
The primary operative sections of the Amendment of Approved Statement Instrument No. 1 of 2013 are sections 64AB(4B) and 4A(1A) of the Customs Act 1901, which define the requirements for an electronic cargo report for aircraft arriving in Australia. Under section 64AB(4B), the electronic cargo report must include the information set out in an approved statement, which is defined in section 4A(1A) as a statement approved by the Chief Executive Officer of Customs. The CEO Instrument of Approval No. 2 of 2006 previously approved the “CARGO REPORT (AIR)” which comprises 38 separate fields of information. This amendment introduces a 39th field, "Consignment Reference," to assist in the reporting and clearance of part shipments.
The obligations imposed by this legislation are primarily on cargo reporters and customs brokers who must now include the new Consignment Reference field in their electronic cargo reports, import declarations, warehouse declarations, and self-assessed clearance documents. This additional field, in combination with a House Air Waybill number, will help identify cargo from a particular consignment, particularly when it arrives over multiple flights. The Integrated Cargo System (ICS) will be able to link an import declaration to cargo reports with the same House Air Waybill number but different Master Air Waybill numbers, streamlining the clearance process.
There are no explicit offences, penalties, or civil/criminal consequences stated in the text for failing to comply with the new requirements. However, non-compliance with the reporting requirements under the Customs Act 1901 can result in various enforcement actions by Customs, such as fines, seizures, or other penalties as stipulated in other sections of the Act. The minor nature of this amendment suggests that the consequences for non-compliance would likely align with the existing regulatory framework for Customs reporting and declarations.