EXPLANATORY STATEMENT

CEO Determination No. 2 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

On 15 July 2005, the Chief Executive Officer of Customs (the CEO) determined information technology requirements under subsection 126DA(1) in CEO Determination No. 1 of 2005.  Under that Determination, all electronic communications (except movement applications made under section 119AA of the Customs Act) relating to the reporting and entry of imported goods and goods for exportation, and the arrival and departure of ships and aircraft had to be made using the new Customs computer system, the Integrated Cargo System (ICS).  Movement applications made under section 119AA may be communicated to Customs using e -mail.

Under the application provisions in the Customs Legislation and Amendment (Application of Trade Modernisation and Other Measures) Act 2004 (the Application Act), the ICS is required to be used in relation to the reporting and entry of imported goods, the impending arrival of a ship or aircraft, the arrival of a ship or aircraft and unloading of goods, only where the ship or aircraft are due to arrive in Australia for the first time at or after import cut-over time.  Import cut-over time was 2am on Wednesday 12 October 2005.

However, some members of the importing community are experiencing difficulties in using the ICS.  Therefore, it is proposed that, in the short term, these members can continue to use the COMPILE computer to communicate import declarations, warehouse declarations and returns to Customs.

CEO Determination No. 2 of 2005 (the Determination) revokes CEO Determination No. 1 of 2005.

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 entry of goods imported by ship or air, in specified circumstances, can continue to be made using COMPILE.  Customs brokers and/or the owners of goods must have registered with Customs to continue to use COMPILE as a contingency arrangement.

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 changed from CEO Determination No. 1 of 2005.

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 2005.

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.  Customs has also regularly issued media releases and placed notices on the Customs website about these arrangements.

Commencement

The instrument commences on the day it is registered.