EXPLANATORY STATEMENT

CEO Instrument of Approval No. 2 of 2005

Customs Act 1901

Background

Subsection 4A(1) of the Customs Act 1901 (the Act) defines an approved form as a form that is approved, by instrument in writing, by the Chief Executive Officer of Customs (the CEO). Subsection 4(2) of the Act provides that the instrument by which a form is approved under subsection 4A(1), is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

Subsection 64AB(3) of the Act requires the pilot or owner of an aircraft that is on a flight to Australia from a place outside Australia to report to Customs the cargo on board the aircraft that is intended to be unshipped at an airport in Australia.  Currently a computer cargo report is required at least 2 hours before the aircraft arrives at an airport if cargo is intended to be unshipped at that airport.  A documentary cargo report is required at least 3 hours after the aircraft arrived at an airport if cargo is intended to be unshipped at that airport. That is, if cargo is intended to be unshipped at Brisbane, Sydney and Melbourne and the report is made by document, a cargo report will have to be provided at least 3 hours after the aircraft arrives in Brisbane specifying the cargo intended to be unshipped in Brisbane.  A report of the cargo intended to be unshipped in Sydney will have to be made at least 3 hours after the aircraft’s arrival in Sydney.  A third report will have to be made at least 3 hours after the aircraft’s arrival in Melbourne.

On 13 January 2005, item 3 of Schedule 6 to the Customs Legislation Amendment (Airport, Port and Cargo Security) Act 2004 (the Amendment Act) will replace subsection 64AB(3).  New subsection 64AB(3) will require the pilot or owner of a relevant aircraft to report to Customs all of the cargo that is intended to be unshipped from the aircraft either 2 hours before the aircraft arrives at its first airport in Australia or 3 hours after it arrives at that first airport in Australia (depending on how the report is made).  Hence, in the example above, the master or owner will have to report all of the cargo intended to be unshipped in Brisbane, Sydney and Melbourne not later than 3 hours after the aircraft arrives in Brisbane.

Subsection 64AB(4) of the Act provides, in part, that a documentary report of the cargo intended to be unshipped from an aircraft at a particular airport must:

a)        be in the approved form for air cargo; and

b)        contain the information required by the form; or particulars of the person who is able to provide the information required by the form; and

c)        be signed in a manner specified in the form.

Instrument

CEO Instrument No. 1 of 2005 approves a new form for the purposes of communicating to Customs a documentary cargo report in respect of cargo that is on board an aircraft and is intended to be unshipped at an airport in Australia.  The form has been amended to require the pilot or owner to specify the first Australia airport of call and estimated time and date of arrival as well as a list of all Australian airports at which reportable cargo will be discharged.  This will allow Customs to check that the new cargo reporting requirements are being satisfied.

CEO Instrument No. 2 of 2005 also revokes Instrument No. 16 of 1991 which approved the current approved form that is used for the purpose of reporting cargo that is on board an aircraft and is intended to be unshipped at an airport in Australia.

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

CEO Instrument No. 2 of 2005 was made on 11 January 2005 and commences on 13 January 2005 to coincide with the commencement of item 3 of Schedule 6 to the Amendment Act.