Customs Act 1901 - CEO Instrument of Approval No. 1 of 2014

Administered by Department of Home Affairs

Legislation au F2014L01001 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

CEO Instrument of Approval No. 1 of 2014

Customs Act 1901

 

Subsection 4A(1) 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 by the CEO under subsection 4A(1), 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 117A of the Act requires persons in charge of a place at which the consolidation of goods for exportation by a ship or aircraft is to be carried out, to prepare and communicate electronically to the Australian Customs and Border Protection Service (ACBPS) a submanifest in respect of the goods, to enable the exportation.

 

Subsection 117A(2) of the Act requires a submanifest to communicate information as set out in an approved statement.

 

This information is transmitted to the ACBPS in the Integrated Cargo System (ICS). The ICS provides a single window for a variety of stakeholders in the supply chain to report core import and export data which is used for risk assessment and clearance purposes. The ICS is the only method of electronically reporting the legitimate movement of cargo across Australia’s borders.

 

When an export submanifest is reported, the ICS applies a status to each line of cargo.  The status advises the ACBPS and the originator whether the submanifest has been validated and processed and also indicates whether the cargo may be moved from a depot to a Cargo Terminal Operator (CTO) for export.

 

A status of “clear” in the ICS indicates that cargo reported in the export submanifest is approved to move to a CTO.  The cargo is then consolidated in the depot and moved to a CTO.

 

A status of “error” in the ICS indicates that there is a data or validation error. If this occurs, the cargo cannot be moved to a CTO until the error is resolved.  

 

When ACBPS have an interest in a particular line(s) of cargo, the cargo is currently held at a CTO for further investigation or examination.  This is because ACBPS’s interest in particular cargo is only actioned once it arrives at a CTO. However, when cargo is “cleared” to move from a depot to a CTO, it is consolidated for transport and once consolidated, ACBPS are unable to ‘hold’ individual lines of cargo that are of interest.  As a result, whole consolidations are held at CTOs if ACBPS have an interest in some or all of the cargo.  Unfortunately, this often results in legitimate cargo also being at held CTOs if it has been consolidated with cargo that is of interest to the ACBPS.  As a result, licensed freight forwarders and licensed depot operators are often unaware of the true status of cargo after it arrives at a CTO because they are not currently notified when consolidations are being held and cannot, therefore, rely on the “clear” status in the ICS. 

 

The amendments to the export submanifest will enable the ICS to apply an “error” status to lines of cargo which require further examination by the ACBPS, while at a depot.   In effect, the amendments will notify licensed freight forwarders and licensed depot operators of the line(s) of cargo that have been held by the ACBPS for further investigation or examination and ensure that those lines of cargo are not consolidated and moved to a CTO until “cleared”. 

 

In particular, the amendments insert two new fields into the export submanifest, being a Depot Establishment Code and a House Bill Number.

 

The Depot Establishment Code is a unique identifier used by the ACBPS to identify an approved/licensed premise for loading and unloading of goods under Customs control until a clearance is issued. It also identifies the physical location of the depot and the cargo in question.

 

The House Bill Number will identify which line(s) of cargo have been held for further investigation or examination by applying an “error” status.

 

This will enable ACBPS to hold particular lines of cargo, rather than whole consolidations, while allowing legitimate cargo with a “clear” status to continue to be processed for export. Most importantly the ACBPS can hold the affected lines at the depot rather than having the whole consolidation moved to the CTO and then held at the departure premises impacting on all lines for export.

 

Instrument

CEO Instrument of Approval No. 1 of 2014 (the instrument) repeals and replaces CEO Instrument of Approval No. 12 of 2004 dated 9 September 2004 which approved the “EXPORT SUBMANIFEST” as an approved statement for the purposes of communicating to the ACBPS an electronic submanifest in accordance with section 117A of the Act.

The instrument is being re-made to incorporate two new fields into the “EXPORT SUBMANIFEST”, being a “Depot Establishment Code” and a “House Bill Number”.  The new fields enable the ACBPS to transmit an accurate status of export cargo to licensed freight forwarders and licensed depot operators in the ICS. 

 

Consultation

 

The Customs Brokers and Forwarders Council of Australia Inc. have been consulted and supported the amendments.   

 

Commencement

 

The instrument commences on day after it is registered on the Federal Register of Legislative Instruments.

 

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

CEO Instrument of Approval No. 1 of 2014

 

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Overview of the Legislative Instrument

 

The instrument repeals and replaces CEO Instrument of Approval No. 12 of 2004 dated 9 September 2004 which approves the “EXPORT SUBMANIFEST” as an approved statement for the purposes of communicating to the ACBPS an electronic submanifest in accordance with section 117A of the Act.

 

This instrument replaces the previously approved “EXPORT SUBMANIFEST” as an approved statement to incorporate two additional fields being the “Depot Establishment Code” and the “House Bill Number”.

 

 

Human Rights Implications

 

The instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Michael Pezzullo,

Chief Executive Officer, Australian Customs and Border Protection Service

Overview

The Customs Act 1901, enacted by the Australian Parliament, governs the administration of customs and excise in Australia. This Act was introduced to address the need for a streamlined and efficient process for the consolidation and exportation of goods. One significant update to this Act is CEO Instrument of Approval No. 1 of 2014, which updates the "EXPORT SUBMANIFEST" as an approved statement. This instrument facilitates the communication of electronic submanifests to the Australian Customs and Border Protection Service (ACBPS) in accordance with section 117A of the Act. The policy objective of this update is to ensure the accurate status of export cargo is transmitted to licensed freight forwarders and depot operators in the Integrated Cargo System (ICS). By incorporating two new fields, the "Depot Establishment Code" and the "House Bill Number", the instrument aims to enable the ACBPS to hold particular lines of cargo for further investigation or examination at the depot, rather than holding whole consolidations at Cargo Terminal Operators (CTO). This approach minimises the impact on legitimate cargo and ensures that only the affected lines are held while allowing other cargo with a "clear" status to continue processing for export.

Scope and Application

CEO Instrument of Approval No. 1 of 2014 amends the Customs Act 1901 by updating the approved statement for the preparation and electronic communication of export submanifests to the Australian Customs and Border Protection Service (ACBPS). This instrument applies to individuals and entities involved in the consolidation and export of goods, specifically those who are in charge of places where goods are consolidated for export. The amendment introduces two new fields in the export submanifest: a Depot Establishment Code and a House Bill Number. These additions enable the ACBPS to apply an "error" status to specific lines of cargo that require further investigation or examination at the depot level, rather than holding entire consolidations. This change ensures that legitimate cargo can continue to be processed for export while allowing the ACBPS to manage and investigate individual lines of interest more effectively. The instrument has a national jurisdictional reach within Australia, as it pertains to the customs processes governed by the Commonwealth. The instrument does not introduce any exclusions, exemptions, or thresholds but enhances the existing framework for export submanifests by adding granularity in cargo status reporting. It is a legislative instrument under the Legislative Instruments Act 2003 and, as such, can be further extended or modified through subordinate instruments.

Key Provisions

The CEO Instrument of Approval No. 1 of 2014 (the instrument) amends the existing legislative framework concerning the export submanifest under the Customs Act 1901 (the Act). Specifically, section 117A of the Act mandates that individuals in charge of a location where goods are consolidated for export by ship or aircraft must prepare and electronically communicate a submanifest to the Australian Customs and Border Protection Service (ACBPS). This requirement ensures that the ACBPS has essential information for facilitating exportation. The instrument updates the approved statement to include two new fields: a Depot Establishment Code and a House Bill Number. These additions are critical for enabling the ACBPS to more accurately apply statuses to lines of cargo within the Integrated Cargo System (ICS), thereby allowing for more precise management of cargo that requires further examination or investigation. The obligations imposed by the instrument on parties involved in the export process include the mandatory preparation and communication of an export submanifest containing the newly required fields. The Depot Establishment Code must be a unique identifier used by the ACBPS to pinpoint the approved premises for loading and unloading goods under Customs control. The House Bill Number will help identify specific lines of cargo that have been flagged for further examination. These obligations are crucial for ensuring that the export process remains efficient while allowing the ACBPS to conduct necessary investigations without unnecessarily delaying the movement of legitimate cargo. Furthermore, these amendments ensure that licensed freight forwarders and depot operators are informed about the status of their cargo, facilitating better planning and management of export activities. Failure to comply with the requirements set forth in the instrument can lead to significant operational disruptions. While the specific penalties for non-compliance are not detailed in the explanatory statement, breaches of the Customs Act 1901 generally entail substantial penalties. For instance, under section 195 of the Act, an individual who commits an offence against the Act can face a maximum penalty of 10,000 penalty units or imprisonment for five years, or both, depending on the severity of the offence. For corporations, the penalties can be even more severe, reaching up to 50,000 penalty units or, in some cases, both imprisonment and fines. Additionally, the instrument's amendments are designed to prevent the unnecessary holding of entire cargo consolidations at Cargo Terminal Operators (CTOs) when only specific lines of cargo require further examination, thereby minimizing the impact on legitimate cargo movements and ensuring smoother export operations. In summary, the CEO Instrument of Approval No. 1 of 2014 updates the export submanifest requirements by incorporating new fields that allow for more precise status updates within the ICS. This ensures that the ACBPS can efficiently manage and examine specific lines of cargo without unnecessarily delaying the export process for legitimate goods. Compliance with these requirements is essential to avoid potential penalties and to facilitate a smoother operation of the export process.

Legal classification tags

Area of Law
Customs Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Enforcement Powers

Interactions

Authorises

All Versions

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.