EXPLANATORY STATEMENT
CEO Instrument of Approval No. 1 of 2010
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 4A(2) of the Act provides that the instrument by which a statement is approved under subsection 4A(1A) 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
Section 168 of the Act provides that the regulations may make provision for and in relation to allowing drawbacks of duty paid on goods imported into Australia.
Regulation 129 through to regulation 136B of the Customs Regulations 1926 (the Principal Regulations) set out the circumstances in which goods are eligible for drawback of import duty, the methods of calculating the amount of drawback, and the procedures that must be followed before a drawback is payable. Regulation 134 previously only allowed a claim for drawback to be made in an approved form. In the Customs context, the reference to an approved form in subregulation 134(4) meant that a claim for drawback could only be made in a documentary form.
The Integrated Cargo System (the ICS) is the computer system by which importers and customs brokers electronically provide information to the Australian Customs and Border Protection Service (Customs and Border Protection). The ICS has been in operation since 2005 and initially did not contain the functionality whereby a claim for drawback could be electronically lodged with Customs and Border Protection. However, recent enhancements to the ICS now allow claims for drawback to be made electronically using the ICS. In the Customs context, electronic communications to Customs and Border Protection are made in the form of an approved statement, as opposed to an approved form.
Regulation 134 has been amended to also allow a claim for drawback of import duty to be made electronically for drawback and provides that the claim must include information as required by an approved statement (new subregulation 134(4A refers). The Chief Executive Officer of Customs has also approved an approved statement for this purpose.
CEO Instrument of Approval No. 1 of 2010 approves the “CLAIM FOR DRAWBACK OF IMPORT DUTY APPLICATION” as an approved statement for the purpose of electronically claiming a drawback of import duty.
Consultation
Customs and Border Protection has consulted extensively with people likely to use the ICS to electronically claim a drawback of import duty.
Commencement
The instrument commences on the day after it is registered.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, governs the regulation of goods imported and exported from Australia. The 2010 instrument, CEO Instrument of Approval No. 1, was introduced to address the gap in the Customs Regulations 1926 which previously only allowed claims for drawback of import duty to be made in a documentary form, thus excluding electronic claims. This was necessitated by the enhancements made to the Integrated Cargo System (ICS) which now supports electronic claims for drawback of import duty. By approving the "CLAIM FOR DRAWBACK OF IMPORT DUTY APPLICATION" as an approved statement, the instrument facilitates the transition to electronic claims, thereby modernising the customs process and improving efficiency. The policy objective is to streamline the process for claiming drawbacks, making it more accessible and convenient for importers and customs brokers by allowing electronic submissions through the ICS.
Scope and Application
The CEO Instrument of Approval No. 1 of 2010, made under the Customs Act 1901, serves to establish the "CLAIM FOR DRAWBACK OF IMPORT DUTY APPLICATION" as an approved statement for the purpose of electronically claiming a drawback of import duty. This approval applies to importers and customs brokers who are eligible to claim a drawback of duty on goods imported into Australia and who utilise the Integrated Cargo System (ICS) to submit their claims. The scope of this legislation is thus limited to the individuals and entities engaging in the import process and utilising the ICS for electronic communications with the Australian Customs and Border Protection Service. While the Act itself is a Commonwealth statute, its application is inherently linked to the procedures and systems regulated under the Customs Regulations 1926, which are also of a Commonwealth nature. The instrument does not specify any exclusions or exemptions; however, it does extend the application of existing regulations to accommodate electronic claims by incorporating the approved statement as a permissible form of communication in place of the previously required approved form. The instrument’s commencement is scheduled for the day following its registration, ensuring that the new provisions take effect in a timely manner.
Key Provisions
The main operative sections of the CEO Instrument of Approval No. 1 of 2010 relate to the approval of a specific statement for the purpose of electronically claiming a drawback of import duty under the Customs Act 1901. Specifically, section 1 of the instrument (subsection 4A(1A) of the Customs Act 1901) defines an approved statement as one that is approved by the Chief Executive Officer of Customs in written form. Section 2 of the instrument (subsection 4A(2) of the Customs Act 1901) establishes that the instrument of approval is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. The instrument amends regulation 134 of the Customs Regulations 1926 to allow claims for drawback of import duty to be made electronically, in addition to the previously allowed documentary form. It specifies that such claims must include the information required by an approved statement.
The obligations and requirements imposed by the Act on parties or entities it governs include the necessity for importers and customs brokers to use an approved statement when electronically lodging a claim for drawback of import duty through the Integrated Cargo System (ICS). This requirement ensures that all necessary information is provided in a format that complies with the Act and the Customs Regulations 1926. The approval of the “CLAIM FOR DRAWBACK OF IMPORT DUTY APPLICATION” as an approved statement by the Chief Executive Officer of Customs provides a standardised method for these claims, facilitating the processing of such claims by the Australian Customs and Border Protection Service.
The legislation does not explicitly outline specific offences, penalties, or consequences for breaches within the instrument itself. However, the general framework of the Customs Act 1901 and related regulations would apply to any non-compliance with the requirements for submitting approved statements for drawback claims. Breaches of the Customs Act 1901, such as submitting incorrect or incomplete information, could result in civil or criminal penalties, including fines and potential imprisonment, depending on the severity of the breach. The maximum penalties would be determined by the specific provisions of the Customs Act 1901 that are contravened.