EXPLANATORY STATEMENT

CEO Instrument of Approval No. 20 of 2005

Customs Act 1901

Subsection 4A(1A) of the Customs Act 1901 (the Customs 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 Customs 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 Instrument Act 2003, approved statements are legislative instruments.

Background

The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) amends the Customs Act 1901 (the Customs Act) to, amongst other things, create the legal foundations for communicating electronically with the Australian Customs Service (Customs) using a new computer system known as the Integrated Cargo System (the ICS).  In particular, the Customs Act is amended to remove the specific references to various Customs computer systems and insert section 126DA which allows the CEO to determine the information technology requirements that a person has to meet in order to communicate electronically with Customs.  In order to allow people who want to communicate with Customs electronically time to prepare the relevant systems, the amendments in the ITM Act have been proclaimed to commence progressively.

The amendments relating to the importation of goods and the arrival of ships and aircraft in Australia (the ITM import amendments) have been proclaimed to commence on 19 July 2005.  In this final phase, the ICS will replace the COMPILE computer system, Air Cargo Automation system and Sea Cargo Automation system.

The Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 (the Application Act) provides that the ITM import amendments apply to certain communications made in respect of ships and aircraft that are expected to arrive in their first Australian port or airport at or after the import cut-over time.  The CEO must set the import cut-over time.

This will allow importers, ship and aircraft operators, cargo reporters, etc time to prepare the necessary systems to be able to communicate with the ICS.

The Application Act also provides that the ITM import amendments apply to the following communications from 19 July 2005:

a)            a return under subsection 69(5) of the Customs Act;

b)            a return under subsection 70(7) of the Customs Act;

c)             an entry for home consumption of warehoused goods under new section 71A of the Customs Act;

d)            an entry of a ship or aircraft (other than a ship or aircraft imported on board a ship or aircraft).

However, importers will not be ready to use the ICS to make these communications from 19 July 2005.  To ensure that importers may still use the COMPILE computer system to make these entries and returns electronically, the CEO has determined under section 126DA of the Customs Act, that COMPILE be used to make them until import cut-over time.  After import cut-over time, the ICS must be used to make these communications electronically.

The existing approved statements that apply in respect of those communications have been re-approved to ensure that COMPILE can continue to be used to make those communications electronically until import cut-over time.

Instrument

CEO Instrument of Approval No. 20 of 2005 approves the attached “Import Declaration/Return (Nature 10) - Sea” statement as the approved statement for the purposes of communicating to Customs:

a)        an electronic import declaration for a ship (other than a ship imported on board a ship or aircraft); and

b)        an electronic return for special clearance goods under subsection 70(7) of the Customs Act in respect of 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 19 July 2005.