EXPLANATORY STATEMENT
CEO Instrument of Approval No. 2 of 2010
Customs Act 1901
Subsection 4A(1) of the Customs Act 1901 (the Customs 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 4A(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. Under paragraph 6(d) of the Legislative Instruments Act 2003, approved forms are legislative instruments.
Background
Section 163 of the Customs Act provides in part that refunds, rebates and remissions of duty may be made in respect of goods generally, or in respect of goods included in a class of goods.
Paragraph 163(1AA)(a) of the Customs Act provides that regulations may prescribe the manner of applying, either by document or by computer, for such refunds, rebates or remissions.
Paragraph 128(1)(a) of the Customs Regulations 1926 provides that a documentary application for a refund, a rebate or a remission of duty must be in an approved form.
On 30 November 2009, the Federal Government announced that the Australian Taxation Office (ATO) would take over responsibility for the administration of warehoused excise equivalent goods (EEGs) that are in a licensed warehouse from the Australian Customs and Border Protection Service. This arrangement was developed under the Better Regulation Ministerial Partnership, comprising the Assistant Treasurer, the Minister for Home Affairs and the Minister for Finance and Deregulation. EEGs are imported goods that, if produced or manufactured in Australia, would be subject to excise duty.
From 1 July 2010, officers of the ATO will, under delegation, administer legislation applying to EEGs that are warehoused in a warehouse licensed under section 79 of the Customs Act, and other goods warehoused with EEGs.
This new arrangement means that the ATO will be using several forms that are currently used by Customs and Border Protection to process EEGs and other goods. One of these forms is the “Application for Remission of Duty”, which is an approved form under the Customs Act. A new version of this form has been designed so that it reflects that the ATO is now the agency with whom some importers and brokers will deal in respect of the remission of customs duty. The form that is currently used by importers and brokers to apply to Customs and Border Protection for a remission of customs duty is unaffected by this new form.
Instrument of Approval
CEO Instrument of Approval No. 2 of 2010 approves the “Application for Remission of Duty (NAT 73478‑05.2010)” form as an approved form for the purposes of making a documentary application for a remission of duty.
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 1 July 2010.
Overview
The Customs Act 1901, enacted by the Australian Parliament, governs the administration of customs duties and the related processes, including the application for refunds, rebates, and remissions of duty. In addressing the need for streamlined administrative processes and the transition of certain duties from the Australian Customs and Border Protection Service to the Australian Taxation Office (ATO), the Customs (Application for Remission of Duty) Instrument 2010 was introduced. This instrument was developed to ensure that the administrative transition did not disrupt the processes for applying for remissions of duty. The explanatory statement for CEO Instrument of Approval No. 2 of 2010 clarifies that it approves the "Application for Remission of Duty" form for use by the ATO, reflecting the new administrative arrangement from 1 July 2010. This legislative action ensures that the approved form aligns with the new responsibilities of the ATO in processing remissions of duty for warehoused excise equivalent goods.
Scope and Application
CEO Instrument of Approval No. 2 of 2010 pertains to the approval of a specific form for use in making documentary applications for the remission of duty, aligning with the Customs Act 1901. This legislative instrument applies to individuals and entities involved in the process of remitting customs duty, particularly those who have been assigned responsibilities by the Australian Taxation Office (ATO) in the administration of warehoused excise equivalent goods (EEGs). This change, effective from 1 July 2010, follows the transfer of duty on EEGs from the Australian Customs and Border Protection Service to the ATO, a decision that was made under the auspices of the Better Regulation Ministerial Partnership. The approved form, "Application for Remission of Duty (NAT 73478-05.2010)", is designed to facilitate transactions involving the remission of duty for goods warehoused in a licensed warehouse, reflecting the new administrative arrangements. The instrument does not require consultation as it is considered a minor or machinery nature, and it does not substantially alter existing arrangements.
Key Provisions
The main operative sections of this legislation are found in the Customs Act 1901 and the Customs Regulations 1926, which together define the requirements for approved forms and the application process for refunds, rebates, and remissions of duty (sections 163 and 128(1)(a)). CEO Instrument of Approval No. 2 of 2010 specifically approves the “Application for Remission of Duty (NAT 73478-05.2010)” form as an approved form for documentary applications for duty remissions. This approval ensures that the form meets the legal standards set by the Customs Act and Regulations.
The obligations imposed by the Customs Act and Regulations include the requirement that any documentary application for a refund, rebate, or remission of duty must be made using an approved form, as specified in section 128(1)(a) of the Customs Regulations. The approved form, “Application for Remission of Duty (NAT 73478-05.2010),” must be used by applicants seeking remission of duty for warehoused excise equivalent goods and other goods under the new arrangement where the Australian Taxation Office (ATO) is responsible for administering these duties. This form is necessary to ensure that all applications are processed correctly and comply with the legislative requirements.
The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the approved form requirements. However, under the broader framework of the Customs Act and the Customs Regulations, failure to use the approved form for documentary applications for remission of duty could result in the application being deemed invalid. This could lead to delays in processing or denial of the remission of duty. While the specific penalties for such non-compliance are not detailed in this particular instrument, they may be addressed under other sections of the Customs Act or related legislation.