EXPLANATORY STATEMENT
CEO Instrument of Approval No.106 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. 61 of 2005, The CEO has approved the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (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 air.
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 (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)” in place of $250.
CEO Instrument of Approval No. 106 of 2005 revokes CEO Instrument of Approval No. 61 of 2005 and approves the updated version of the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (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 air.
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 Act 1901, enacted by the Australian Parliament, aims to regulate the import and export of goods to ensure compliance with relevant laws and the collection of appropriate duties and taxes. The Act was amended to address issues related to the clearance of low-value goods, facilitating streamlined processes for such goods while maintaining control over higher-value imports. The Customs Amendment Regulations 2005 (No. 6) increased the threshold for specified low value goods from $250 to $1,000, necessitating an update to the approved statement used for making self-assessed clearance declarations. CEO Instrument of Approval No. 106 of 2005, approved by the Chief Executive Officer of Customs, updated the "SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)" to reflect this new threshold. This amendment ensures that the approved statement aligns with the current legislative framework, allowing for efficient electronic declarations for low-value goods while maintaining oversight for higher-value imports.
Scope and Application
The Customs Act 1901, as amended and supplemented through subordinate instruments such as the Customs Amendment Regulations 2005 (No. 6), governs the regulation of goods imported into Australia, including the procedures for making self-assessed clearance declarations. This legislation applies to individuals and entities importing goods into Australia, specifically focusing on the declaration process for low-value consignments. The Act defines "specified low value goods" as those with a value not exceeding $1,000, a threshold updated by the Customs Amendment Regulations 2005 (No. 6) from the previous $250 limit. The CEO Instrument of Approval No. 106 of 2005, which revokes the earlier Instrument of Approval No. 61 of 2005, approves the revised version of the "SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)" for electronically communicating these declarations when goods are imported by air. The instrument, which does not require consultation due to its minor nature, comes into effect upon registration.
Key Provisions
The Customs Act 1901, as amended, includes provisions for the clearance of specified low value goods imported into Australia. Under section 68(1)(f) (paragraphs 68(1)(d) to (i)), goods imported into Australia by air, provided they are transported together in the same aircraft, and have a value not exceeding a specified amount, do not require formal entry. Initially, this value threshold was set at $250, but it has since been increased to $1,000 by the Customs Amendment Regulations 2005 (No. 6). Owners of these specified low value goods, or persons acting on their behalf, are required to make a self-assessed clearance declaration as per section 71AAAF of the Act. This declaration must be made in accordance with an approved statement and communicated electronically, potentially alongside a cargo report, as stipulated in section 71AAAF.
The obligations imposed by the Act on the relevant parties are straightforward. The owner of specified low value goods, or an authorised agent, must ensure that the value of the goods declared does not exceed the specified threshold. This declaration must be made using the approved statement and communicated electronically to Customs. Additionally, if the goods exceed the current value threshold of $1,000, a formal import entry must be lodged instead of the self-assessed clearance declaration.
Failure to comply with these requirements can result in significant consequences. Under the Customs Act, breaches of its provisions can lead to both civil and criminal penalties. Civil penalties may include fines, while criminal penalties could involve imprisonment, reflecting the severity of non-compliance. The exact penalties depend on the specific breach and are outlined in other sections of the Act, but they underscore the importance of adhering to the legislative requirements for the clearance of specified low value goods.