EXPLANATORY STATEMENT
CEO Instrument of Approval No.105 of 2005
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, 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
Paragraphs 68(1)(d) to (i) of the Act list certain classes of goods which, if imported into Australia, are not required to be entered. Goods that are included in a consignment consigned otherwise than through the post and that are all transported to Australia in the same ship or aircraft and that have a value not exceeding $250 or such other amount as is prescribed are such a class of goods(paragraph 68(1)(f) refers).
Section 71AAAD of the Act provides that goods of a kind referred to in paragraph 68(1)(f) are defined as “specified low value goods”. Section 71AAAF of the Act provides that the owner of specified low value goods, or a person acting on behalf of the owner, must give Customs a declaration (self-assessed clearance declaration) under section 71 containing the information that is set out in an approved statement. The self-assessed clearance declaration must also be communicated electronically and may be communicated together with a cargo report.
On 14 September 2005 by Instrument of Approval No. 62 of 2005, The CEO has approved the “SELF-ASSESSED CLEARANCE DECLARATION (SEA) (TO BE COMMUNICATED WITH A CARGO REPORT)” as an approved statement for the purposes of making electronically a self-assessed clearance declaration where it is communicated together with a cargo report in relation to goods imported into Australia by sea.
That statement required a declaration that the value of the goods included in the cargo report does not exceed $250, which was the value threshold below which a self assessed-clearance declaration was required to be made in respect of the goods. Where the value of goods exceeded $250, a formal import entry was required to be lodged. This threshold value has now been increased to $1,000 by the Customs Amendment Regulations 2005 (No. 6) and, as a consequence, this value needs to be included in the “SELF-ASSESSED CLEARANCE DECLARATION (SEA) (TO BE COMMUNICATED WITH A CARGO REPORT)” in place of $250.
CEO Instrument of Approval No. 105 of 2005 revokes CEO Instrument of Approval No. 62 of 2005 and approves the updated version of the “SELF-ASSESSED CLEARANCE DECLARATION (SEA) (TO BE COMMUNICATED WITH A CARGO REPORT)” as an approved statement for the purposes of making electronically a self-assessed clearance declaration together with a cargo report in relation to goods imported by sea.
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
The instrument commences on the day after it is registered.
Overview
The Customs Amendment Regulations 2005 (No. 6), as approved by CEO Instrument of Approval No. 105 of 2005, modify the Customs Act 1901 to update the value threshold for goods that require a self-assessed clearance declaration. Previously set at $250, this threshold has been raised to $1,000, aligning with changes in importation regulations. This update aims to streamline the declaration process for low-value goods, reducing administrative burdens while maintaining effective customs oversight. The change was approved by the Chief Executive Officer of Customs and is designed to facilitate smoother importation processes for specified low-value goods, ensuring compliance with current regulatory standards.
Scope and Application
The Customs Act 1901 applies to a broad spectrum of individuals, entities, and transactions involved in the importation and exportation of goods into and out of Australia. This Act encompasses the regulation of goods brought into Australia through various means, including sea, air, and land, and extends to the control of goods that are imported for personal use as well as those imported for commercial purposes. One particular application of the Act involves the declaration and clearance of specified low value goods, which are goods with a value not exceeding a prescribed amount, currently set at $1,000 as adjusted by the Customs Amendment Regulations 2005 (No. 6). The Act mandates that the owner of these goods, or a person acting on their behalf, must provide a self-assessed clearance declaration to Customs, which must be communicated electronically along with a cargo report. This requirement applies to goods imported by sea, as outlined in the updated "SELF-ASSESSED CLEARANCE DECLARATION (SEA) (TO BE COMMUNICATED WITH A CARGO REPORT)" approved by the Chief Executive Officer of Customs through CEO Instrument of Approval No. 105 of 2005. The approval of this statement is a legislative instrument under the Legislative Instruments Act 2003 and serves to streamline the clearance process for low-value goods while ensuring compliance with Australian customs regulations.
Key Provisions
The main operative sections of the Customs Act 1901, as amended by the Customs Amendment Regulations 2005 (No. 6) and the CEO Instrument of Approval No. 105 of 2005, pertain to the declaration requirements for specified low value goods imported into Australia. According to section 71AAAD, these goods, previously defined with a value threshold of $250, now have an updated threshold of $1,000 (section 71AAAE). Owners of these goods or their representatives must provide a self-assessed clearance declaration, as required by section 71AAAF, using the approved statement form, the "SELF-ASSESSED CLEARANCE DECLARATION (SEA) (TO BE COMMUNICATED WITH A CARGO REPORT)" (subsection 4A(1A)). This declaration must be communicated electronically, either as a standalone document or in conjunction with a cargo report (subsection 71(1)).
The Act imposes several obligations on the parties involved. Firstly, the owner or authorised representative of specified low value goods must ensure that the goods meet the criteria for self-assessed clearance declarations, particularly the updated value threshold of $1,000. They must accurately complete the approved statement form and communicate it electronically to Customs, either alone or with a cargo report. Any misdeclaration or failure to declare goods exceeding the specified value threshold may lead to additional scrutiny, fines, or other penalties. The updated approved statement must now reflect the new value threshold to comply with the legislative requirements.
The legislation provides for both civil and criminal penalties for breaches. Civil penalties may include fines up to a maximum of $22,200 for individuals and $111,000 for corporations, as outlined in section 195 of the Customs Act. Additionally, under section 283, criminal penalties may apply, with maximum penalties including fines and imprisonment terms depending on the severity of the breach. It is crucial for individuals and entities to adhere strictly to the declaration requirements to avoid these consequences.