Customs Act 1901 - CEO Determination No. 1 of 2005

Administered by Attorney-General's Department

Legislation au F2005L02009 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

CEO Determination No. 1 of 2005

Customs Act 1901

Subsection 126DA(1) of the Customs Act 1901 (the Customs Act) provides that after consulting with persons likely to be affected, the CEO must determine, and cause to be published in the Gazette:

a) the information technology requirements that have to be met by persons who wish to communicate with Customs electronically; and

b) the information technology requirements that have to be met to satisfy a requirement that a person's signature be given to Customs in connection with information when the information is communicated electronically; and

c) the information technology requirements that have to be met to satisfy a requirement that a document be produced to Customs when the document is produced electronically.

Subsection 126DA(2) allows the CEO to determine alternative information technology requirements that may be used including different information technology requirements that may be used in different circumstances or by different classes of persons.

Background and Instrument

Section 126DA was inserted into the Customs Act by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) on 22 September 2004.

The ITM Act amends the Customs Act to, amongst other things, create the legal foundations for communicating electronically with Customs using a new computer system known as the Integrated Cargo System (the ICS). Before the amendments were made, the Customs Act required people to use the Air Cargo Automation System, the Sea Cargo Automation System, COMPILE and EXIT to communicate by computer.

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 in the ITM Act relating to the exportation of goods and departure of ships and aircraft from Australia (the ITM export amendments) were proclaimed to commence on 22 September 2004 at the same time section 126DA was inserted into the Customs Act.

At that time, the Chief Executive Officer of Customs (the CEO) determined information technology requirements under subsection 126DA(1) so that all electronic communications (except movement applications made under section 119AA of the Customs Act) relating to the exportation of goods and departure of ships and aircraft had to be made using the ICS. Movement applications made under section 119AA may be communicated to Customs using e-mail.

The CEO remade that determination in December 2004 to ensure it complied with the Legislative Instruments Act 2003 (CEO Determination No. 1 of 2004 refers).

The amendments in the ITM Act relating to the importation of goods and the arrival or ships and aircraft in Australia (the ITM import amendments) have been proclaimed to commence on 19 July 2005.

Under application provisions in the Customs Legislation and Amendment (Application of Trade Modernisation and Other Measures) Act 2004 (the Application Act), the ITM import amendments in relation to the entry of goods (other than warehoused goods), the impending arrival of a ship or aircraft, the arrival of a ship or aircraft and unloading of goods apply to ships and aircraft that arrive in Australia for the first time at or after import cut-over time. The CEO has specified that import cut-over time will be 2am in the Australian Capital Territory on 28 August 2005.

The new Determination extends the information technology requirements that apply to the exportation of goods and departure of ships and aircraft to electronic communication made under the ITM import amendments.

Computer impending arrival reports, arrival reports and cargo reports made in respect of ships or aircraft first arriving before import-cut over time have to be made using SCA or ACA. Similarly, entries of goods imported before import cut-over time may be made electronically using COMPILE.

Sections 9, 10, 11 and 12 of the Application Act provide that:

– entries of warehoused goods;

– returns for like customable goods;

– returns for special clearance goods; and

– entries of ships and aircraft (other than a ship or aircraft imported on board a ship or aircraft)

will have to be made under the amended Customs Act from 19 July 2005. That is, a person making one of these entries or returns electronically will not make them under the unamended Customs Act and will have to be comply with any determination made by the CEO under section 126DA.

It has been decided to allow people who make one of those entries or returns electronically on or after 19 July 2005 to make them using COMPILE. They will be able to be made using COMPILE until import cut-over time.

CEO Determination No. 1 of 2005 (the Determination) repeals and replaces CEO Determination No. 1 of 2004.

Part 2 of the Determination continues the requirement to use e-mail to communicate electronic movement applications under section 119AA of the Customs Act.

Part 3 of the Determination will ensure that the returns and entries identified above can continue to be made using COMPILE up until import cut-over time.

Part 4 of the Determination sets out the information technology requirements for all other electronic communications with Customs made under Division 3 or 4 of Part IV or Division 2 of Part VI of the Amended Customs Act. These information technology requirements describe how to use the ICS and have not substantially changed from CEO Determination No. 1 of 2004.

Part 5 of the Determination sets out the information technology requirements that have to be met to satisfy a requirement that a document be produced to Customs when the document is produced electronically. These have not changed from CEO Determination No. 1 of 2004.

The Determination incorporates the approved statement made for the purposes of section 119AA of the Act which sets out the information that is required to provided electronically when applying for permission to move, alter or interfere with goods that have been entered for export. The approved statement is a disallowable legislative instrument and the current statement was published in the Commonwealth of Australia Gazette No. GN 37 on 15 September 2004.

The Determination also incorporates the ICS Message Implementation Guidelines of the CMR Software Developers Guide, as in force at the time when this Determination takes effect. The Guidelines set out the method for applying UN/EDIFACT D99B standards. The Guide is available on the Customs web site.

Consultation

Customs has consulted extensively with people likely to be affected by this instrument, in accordance with section 126DA of the Customs Act.

Commencement

The instrument commences on 19 July 2005.

Overview

The Customs Act 1901, amended by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, addresses the need to modernise and streamline the electronic communication processes between the Australian Customs and Border Protection Service (Customs) and entities involved in international trade. This change was necessary to replace outdated systems such as the Air Cargo Automation System, the Sea Cargo Automation System, COMPILE, and EXIT with the Integrated Cargo System (ICS), facilitating more efficient and secure electronic communications. The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 was enacted to lay the groundwork for this technological shift, and the subsequent CEO Determination No. 1 of 2005, issued by the Chief Executive Officer of Customs, specifies the necessary information technology requirements for electronic communications under the Customs Act. The policy objective behind these amendments is to enhance the efficiency and effectiveness of customs operations by adopting modern IT systems that comply with international standards.

Scope and Application

CEO Determination No. 1 of 2005 under the Customs Act 1901 applies to any person or entity engaged in electronic communications with the Australian Customs Service. This encompasses various industries involved in the import and export of goods, as well as the departure and arrival of ships and aircraft, and mandates specific information technology requirements for such interactions. Geographically, the determination has a national reach, applying throughout Australia. The CEO is empowered to set alternative information technology requirements for different circumstances or classes of persons, reflecting a flexible approach to modernising trade practices. Notably, the determination does not apply to movement applications made under section 119AA of the Customs Act, which may be communicated using e-mail. The determination extends to the use of the Integrated Cargo System (ICS) for electronic communications concerning the exportation of goods and the departure of ships and aircraft, while also allowing the use of legacy systems such as COMPILE for specific transactions up until the import cut-over time. The CEO has the authority to amend these requirements through subordinate instruments, ensuring that the determination can adapt to changing technological and operational needs.

Key Provisions

The Customs Act 1901, as amended, contains specific provisions relating to the information technology requirements for electronic communications with Customs (section 126DA). The CEO is mandated to determine these requirements and publish them in the Gazette. The CEO is also permitted to establish alternative IT requirements for different circumstances or classes of persons (subsection 126DA(2)). These provisions were introduced through the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, which aimed to modernise trade communications by implementing the Integrated Cargo System (ICS). This system replaces the older systems such as the Air Cargo Automation System and Sea Cargo Automation System, among others. The obligations under this Act require entities and individuals to comply with the specified IT requirements for electronic communications with Customs. For instance, electronic communications related to the export of goods and the departure of ships and aircraft must be conducted using the ICS, except for movement applications under section 119AA, which may be communicated via email. Similarly, for imports, the ICS must be used for electronic communications once the import cut-over time is reached, while earlier communications can still be made using older systems like COMPILE. The CEO’s Determination No. 1 of 2005 outlines these requirements and ensures they are met for various types of electronic entries and returns. Failure to comply with the IT requirements set out in the CEO’s Determination can result in significant legal consequences. While the explanatory statement does not specify the exact penalties for non-compliance, breaches of the Customs Act generally attract substantial fines and potential criminal charges. The seriousness of the penalty would depend on the nature and impact of the non-compliance, but it is clear that adherence to the IT requirements is mandatory and non-compliance could lead to enforcement actions by Customs.

Area of Law: Technology Law
Instrument: Determination
Concepts: Definitions & Interpretation; Regulatory Standards; Compliance Obligations

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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.

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