EXPLANATORY STATEMENT
AMENDMENT OF approved statement INSTRUMENT NO. 2 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 4(2) of the Act provides that the instrument by which a statement is approved under subsection 4A(1), 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
Paragraphs 68(1)(d) to (i) of the Act list certain classes of goods which, if imported into Australia, are not required to be entered. Goods that are included in a consignment consigned otherwise than through the post and that are all transported to Australia in the same ship or aircraft and that have a value not exceeding $250 or such other amount as is prescribed are such a class of goods(paragraph 68(1)(f) refers). For the purposes of paragraph 68(1)(f), $1,000 has been prescribed. This means that all such goods whose value does not exceed $1,000 are not required to be entered.
Section 71AAAD of the Act provides that goods of a kind referred to in paragraph 68(1)(f) are defined as “specified low value goods”. Section 71AAAF of the Act provides that the owner of specified low value goods, or a person acting on behalf of the owner, must give Customs a declaration (self-assessed clearance declaration) under section 71 containing the information that is set out in an approved statement. The self-assessed clearance declaration must also be communicated electronically and may communicated together with a cargo report.
CEO Instrument of Approval No. 5 of 2006 approved the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)” as an approved statement for the purposes of making electronically a self-assessed clearance declaration where it is communicated together with a cargo report in relation to goods imported into Australia by air.
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 be added to this cargo report and the import declaration, the warehouse declaration and self-assessed clearance documents (SACs).
This new field number 29 in the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)”, 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.
The previous version of the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)” referred to AQIS and these references have been updated to instead refer to DAFF Biosecurity. The previous SAC also referred to the previous threshold amount of $250 and this has been omitted and replaced with $1,000.
Amendment of Approved Statement Instrument No. 2 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 3 February 2013.
Michael Pezzullo, Acting Chief Executive Officer,
Australian Customs and Border Protection Service
Overview
The Amendment of Approved Statement Instrument No. 2 of 2013 pertains to the Customs Act 1901, which was enacted to streamline the customs clearance process for low-value goods imported into Australia. The problem it was introduced to address was the need for efficient reporting and clearance of part shipments that occur when a single air cargo consignment unintentionally arrives over multiple flights. This was achieved through the introduction of a new field in the cargo report and other relevant documents, which would help in identifying and linking cargo reports using the same House Air Waybill number but different Master Air Waybill numbers. The instrument was approved by the Chief Executive Officer of Customs and is considered a minor amendment that does not substantially alter existing arrangements. The objective of the policy is to improve the accuracy and efficiency of customs clearance processes for low-value goods, particularly in the context of air cargo.
Scope and Application
The Customs Act 1901 governs various aspects of customs and border protection in Australia, including the regulation of the entry and clearance of goods. Specifically, the Act pertains to entities and individuals involved in the importation of goods into Australia, as well as the industries that handle these transactions. The legislation applies to all persons and entities engaged in importing goods, regardless of their location within Australia. This includes businesses, individuals, and couriers who import goods through air, sea, or land. The Act’s provisions extend to the entire Commonwealth of Australia, ensuring a unified approach to customs regulation across the nation. However, the Act also allows for certain exclusions and exemptions, particularly for low-value goods specified under section 71AAAF of the Act, which are not required to be formally entered if they meet certain criteria, such as being transported in the same vessel or aircraft and having a declared value not exceeding $1,000. Additionally, the Act permits the use of approved statements, which are legislative instruments approved by the Chief Executive Officer of Customs, to facilitate the declaration process for specified low-value goods. The approved statement instrument No. 2 of 2013, which has been amended to incorporate new fields in the self-assessed clearance declaration, further refines these procedures by enabling more accurate tracking and clearance of air cargo consignments.
Key Provisions
The main operative sections of the amending instrument, Amendment of Approved Statement Instrument No. 2 of 2013, pertain to updating the "SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)" to align with current standards and requirements. Section 4A(1A) of the Customs Act 1901 defines an approved statement as a declaration that is formally approved by the Chief Executive Officer of Customs. Section 71AAAF specifies that the owner of low-value goods, or someone acting on their behalf, must provide Customs with a self-assessed clearance declaration containing the information outlined in an approved statement. Amendment of Approved Statement Instrument No. 2 of 2013 updates this approved statement to include a new field, Consignment Reference, which assists in identifying and reporting part shipments of air cargo consignments.
The obligations imposed by the amending instrument primarily concern the entities involved in the importation of specified low-value goods into Australia. Owners or their representatives must ensure that any self-assessed clearance declarations include the updated information as per the amended approved statement. This includes incorporating the Consignment Reference field in the cargo report and other related declarations. Furthermore, the amendment mandates that references to AQIS be updated to DAFF Biosecurity, and the threshold amount for low-value goods must be updated from $250 to $1,000. These obligations are crucial for facilitating accurate reporting and clearance of imported goods, particularly for part shipments that occur due to the unintentional arrival of a single consignment over multiple flights.
In terms of potential breaches and penalties, the Customs Act 1901 does not explicitly detail offences or penalties specific to the failure to comply with the amended approved statement. However, any non-compliance with the requirements to provide accurate and complete declarations as stipulated by the Act could potentially result in administrative actions, fines, or other enforcement measures by Customs. The seriousness of the penalties would depend on the nature and extent of the non-compliance, but it is important for entities involved in the importation process to adhere to the updated requirements to avoid any adverse consequences. The overarching principle is to ensure that all declarations are accurate and that the new Consignment Reference field is properly utilised to enhance the tracking and clearance of air cargo consignments.