EXPLANATORY STATEMENT

CEO Instrument of Approval No. 1 of 2005

Customs Act 1901

Background

Subsection 4A(1) of the Customs Act 1901 (the Act) defines an approved form as a form 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 form is approved under subsection 4A(1), is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

Subsection 64AB(2) of the Act requires the master or owner of a ship that is on a voyage to Australia from a place outside Australia to report to Customs the cargo on board the ship that is intended to be unshipped at a port in Australia.  Currently a report is required either 24 or 48 hours (depending on the length of the voyage) before the ship arrives at a port where cargo is going to be unshipped at that port.  That is, if cargo is going to be unshipped at Brisbane, Sydney and Melbourne, a cargo report will have to be provided 24 or 48 hours before the ship arrives in Brisbane specifying the cargo intended to be unshipped in Brisbane.  A report of the cargo intended to be unshipped in Sydney will have to be made at least 24 or 48 hours before the ship’s arrival in Sydney.  A third report will have to be made at least 24 or 48 hours after the ship’s arrival in Melbourne.

On 13 January 2005, item 3 of Schedule 6 to the Customs Legislation Amendment (Airport, Port and Cargo Security) Act 2004 (the Amendment Act) will replace subsection 64AB(2).  New subsection 64AB(2) will require the master or owner of a relevant ship to report to Customs all of the cargo that is intended to be unshipped from the ship 24 or 48 hours before the ship arrives at its first port in Australia.  Hence, in the example above, the master or owner will have to report all of the cargo intended to be unshipped in Brisbane, Sydney and Melbourne 24/48 hours before the ship arrives in Brisbane.

Subsection 64AB(4) of the Act provides, in part, that a documentary report of the cargo intended to be unshipped from a ship at a particular port must:

a)        be in the approved form for ship cargo; and

b)        contain the information required by the form; or particulars of the person who is able to provide the information required by the form; and

c)        be signed in a manner specified in the form.

Instrument

CEO Instrument No. 1 of 2005 approves a new form for the purposes of communicating to Customs a documentary cargo report in respect of cargo that is on board a ship and is intended to be unshipped at a port in Australia.  The form has been amended to require the master or owner to specify the first Australia port of call and estimated time and date of arrival as well as a list of all Australian ports at which reportable cargo will be discharged.  This will allow Customs to check that the new cargo reporting requirements are being satisfied.

CEO Instrument No. 1 of 2005 also revokes Instrument No. 15 of 1991 which approved the current approved form that is used for the purposes of reporting cargo that is on board a ship and is intended to be unshipped at a port in Australia.

Consultation

No 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.

Commencement

CEO Instrument No. 1 of 2005 was made on 11 January 2005 and commences on 13 January 2005 to coincide with the commencement of item 3 of Schedule 6 to the Amendment Act.