Overview

The Customs Amendment (Low Value Cargo) Instrument 2005 (F2005L03625) was enacted to address a gap in the Customs Act 1901 concerning the application process for special reporting status in relation to low value cargo. This legislation was introduced by the Chief Executive Officer of Customs, pursuant to subsection 4A(1) of the Customs Act, and is a disallowable instrument as per section 46A of the Acts Interpretation Act 1901. The policy objective was to streamline and update the administrative process to reflect recent regulatory changes, ensuring that the application form for special reporting accurately reflects the updated threshold for low value cargo. The instrument revokes the previous form approved under CEO Instrument of Approval No. 84 of 2005 and adopts an amended form, the "Special Reporter – Mail Order Consignments APPLICATION FOR REGISTRATION (B303 October 2005)", to align with the new $1,000 value limit set by the Customs Amendment Regulations 2005 (No. 6). This update ensures that the application process remains current with legislative changes, thereby facilitating compliance and efficiency in customs reporting for low value cargo.

Scope and Application

The Customs Act 1901 provides a framework for regulating the import and export of goods in Australia, with specific provisions governing the reporting and customs duty obligations for low value cargo. The Act applies to individuals and entities that import goods into Australia, particularly those involved in mail-order businesses or importing goods of a kind prescribed by regulations. The CEO Instrument of Approval No. 109 of 2005, which approves a specific form for applications to become a special reporter for low value cargo, is part of this regulatory framework. This instrument has a national jurisdictional reach and applies to all importers of low value cargo in Australia. The form approved by the CEO streamlines the process for individuals or entities seeking to change their reporting obligations under the Customs Act, specifically for consignments not exceeding the prescribed value. The application of the Act can be extended or modified through subordinate instruments, such as the Customs Amendment Regulations 2005 (No. 6), which updated the value threshold for low value cargo from $250 to $1,000. The instrument came into effect on the day after it was registered, superseding the previous form approval instrument.

Key Provisions

The key provisions of the F2005L03625 legislation involve the approval and amendment of a form used to apply for registration as a special reporter under the Customs Act 1901 (the Act). Specifically, Section 63A of the Act defines "low value cargo" as goods consigned from a mail-order house or other prescribed goods that do not exceed a certain value, which is currently $1,000 as per the Customs Amendment Regulations 2005 (No. 6). This form, the "Special Reporter – Mail Order Consignments APPLICATION FOR REGISTRATION (B303 October 2005)", has been approved by the Chief Executive Officer (CEO) of Customs and replaces an earlier version that referred to a $250 value limit (subsection 4A(1) and (2)). Under this Act, any person who imports low value cargo may apply to become a special reporter, which alters their reporting obligations to Customs. This involves using the approved form, which now correctly references the $1,000 value limit for low value cargo. The CEO's approval of this form is crucial as it constitutes a legislative instrument (paragraph 6(d) of the Legislative Instruments Act 2003). The form has been updated to reflect the new regulatory value limit, ensuring compliance with the Customs Act and related regulations. The Act imposes several obligations on parties using the approved form. Firstly, they must ensure that the value of the goods they are importing does not exceed the stipulated amount, which is now $1,000. Secondly, they must accurately complete the form and submit it to the relevant authorities for processing. Failure to comply with these requirements can result in the application being rejected, and the applicant may face the same reporting obligations as non-special reporters, which could be more burdensome. The legislation also delineates the consequences of non-compliance. While the Explanatory Statement notes that no consultation was undertaken due to the minor nature of the changes, the implications of not adhering to the requirements set forth in the approved form are nonetheless significant. Any breach of the form requirements, or failure to correctly report the value of low value cargo, could lead to administrative penalties or other enforcement actions by Customs. Although specific penalties are not detailed in the text, breaches of customs regulations generally can result in financial penalties, seizure of goods, or other legal consequences under the Customs Act.