Overview

CEO Determination No. 2 of 2005, enacted under the Customs Act 1901, was introduced to address transitional difficulties experienced by the importing community in adapting to the new Integrated Cargo System (ICS) for electronic communications with Customs. This determination was made by the Chief Executive Officer of Customs after consultation with affected parties, as required by the Customs Act. The primary policy objective was to provide a temporary solution that would ease the transition to the ICS by allowing certain electronic communications to continue using the COMPILE computer system until the community could fully adapt to the new system. The Determination revoked the earlier CEO Determination No. 1 of 2005, which mandated the immediate use of the ICS, and introduced flexibility to accommodate the needs of the importing community during the transition period.

Scope and Application

CEO Determination No. 2 of 2005 amends the information technology requirements for electronic communications with the Australian Customs Service under the Customs Act 1901. It applies to persons and entities involved in the reporting and entry of imported goods, goods for exportation, and the arrival and departure of ships and aircraft, as well as those required to communicate with Customs electronically. The Determination applies nationally across Australia, following the requirements and provisions set forth in the Customs Act and the Customs Legislation and Amendment (Application of Trade Modernisation and Other Measures) Act 2004. Initially, the Integrated Cargo System (ICS) was mandated for all electronic communications; however, due to difficulties experienced by some members of the importing community, the Determination allows for the temporary continued use of the COMPILE computer system for import declarations, warehouse declarations, and returns, provided that customs brokers and/or the owners of goods are registered with Customs. Meanwhile, the use of email for movement applications under section 119AA remains unchanged, and the information technology requirements for other electronic communications and electronically produced documents continue to be governed by the ICS Message Implementation Guidelines. The Determination revokes the previous CEO Determination No. 1 of 2005, reflecting a pragmatic approach to the transition to the new system while addressing the immediate needs of the industry.

Key Provisions

CEO Determination No. 2 of 2005, which revokes the previous CEO Determination No. 1 of 2005, sets out specific information technology requirements for electronic communications with Customs under the Customs Act 1901. Section 126DA(1) mandates that the Chief Executive Officer (CEO) of Customs determine and publish the necessary IT requirements for electronic communications, signatures, and document production (section 126DA(1)). The CEO has also been authorised to determine alternative IT requirements under section 126DA(2). Under this Determination, electronic movement applications under section 119AA of the Customs Act can still be communicated via email, as per Part 2 of the Determination (section 126DA(1)). Part 3 of the Determination allows the use of the COMPILE computer system for entry of goods imported by ship or air in certain circumstances, provided Customs brokers and/or the owners of goods have registered with Customs. Part 4 outlines the unchanged IT requirements for all other electronic communications with Customs under Division 3 or 4 of Part IV or Division 2 of Part VI of the Amended Customs Act, which describe how to use the Integrated Cargo System (ICS). Finally, Part 5 of the Determination retains the unchanged IT requirements for satisfying a requirement that a document be produced to Customs when the document is produced electronically (section 126DA(1)). Entities and individuals governed by this Determination are required to comply with the specified IT requirements to ensure effective electronic communication with Customs. Specifically, Customs brokers and owners of goods must register with Customs to continue using the COMPILE computer system as a contingency arrangement. All other entities must adhere to the IT requirements for using the ICS as outlined in Part 4 of the Determination. Failure to comply with these requirements may result in non-acceptance of electronic communications, delays in processing, and potential penalties for non-compliance. The Customs Legislation and Amendment (Application of Trade Modernisation and Other Measures) Act 2004 may impose penalties for non-compliance with the requirements of this Determination. The exact nature and extent of these penalties are not specified in the Determination but may include fines, legal action, or other administrative penalties as deemed appropriate by the relevant authorities. The maximum penalties for such offences are determined by the applicable laws and regulations, which may vary depending on the specific circumstances of the breach.