Overview

The CEO Instrument of Approval No. 20 of 2005, under the Customs Act 1901, addresses the need for updated communication protocols within the Australian Customs Service as part of the transition to the Integrated Cargo System (ICS). This instrument was introduced to facilitate the modernisation of international trade processes by enabling electronic communication with Customs. The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 laid the groundwork for this transition, and subsequent amendments in the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 further refined the implementation process. The policy objective is to streamline and enhance the efficiency of customs operations by ensuring that all communications relating to the importation of goods and the arrival of ships and aircraft are conducted via an approved electronic system, thereby reducing reliance on outdated computer systems. The instrument was enacted by the Chief Executive Officer of Customs and commenced on 19 July 2005, allowing for a phased implementation that accommodates the readiness of stakeholders to adopt the new system.

Scope and Application

CEO Instrument of Approval No. 20 of 2005 under the Customs Act 1901 specifies the approved statement for communicating an electronic import declaration for ships, other than those imported on board another ship or aircraft, and an electronic return for special clearance goods under subsection 70(7) of the Customs Act in respect of goods imported by sea to the Australian Customs Service. This instrument applies to entities and individuals involved in the import process, including importers, ship operators, and cargo reporters, and is effective from 19 July 2005. The approved statement allows the continued use of the COMPILE computer system to make these communications electronically until the import cut-over time, after which the Integrated Cargo System must be used. The instrument does not undergo consultation as it is considered minor and of a machinery nature, not substantially altering existing arrangements.

Key Provisions

The CEO Instrument of Approval No. 20 of 2005 (subs. 4A(1A) and 4A(2) of the Customs Act 1901) serves to approve the "Import Declaration/Return (Nature 10) - Sea" statement for specific electronic communications with Customs. This approval pertains to two primary activities: the electronic submission of an import declaration for ships (other than those imported on board another ship or aircraft), and the electronic return for special clearance goods under subsection 70(7) of the Customs Act in respect of goods imported by sea. This instrument is essential as it allows the continued use of the COMPILE computer system for these specific communications until the import cut-over time, as determined by the CEO under section 126DA of the Customs Act 1901. Under the Customs Act 1901, the obligations imposed by this instrument primarily concern importers, cargo reporters, and other entities involved in the importation process. These parties must ensure that their systems comply with the approved statement requirements for the specified communications. For the period until the import cut-over time, they are required to use the COMPILE computer system to make the specified electronic returns and declarations. Post this cut-over time, the Integrated Cargo System (ICS) must be used for these communications. The legislation also outlines the consequences for non-compliance. While the explanatory statement does not specify particular offences or penalties for failing to adhere to the approved statement requirements, breaches of the Customs Act 1901 in general can result in significant civil and criminal penalties. For instance, knowingly making a false statement can lead to fines or imprisonment. It is important for the affected parties to transition to the ICS by the import cut-over time to avoid potential penalties associated with non-compliance. The instrument itself does not specify a consultation process as it is considered minor or of a machinery nature and does not substantially alter existing arrangements (section 17 of the Legislative Instruments Act 2003). It is designed to facilitate a smooth transition to the new system by providing a temporary allowance for the use of the COMPILE system until the specified cut-over time. The instrument officially comes into effect on 19 July 2005, aligning with the broader phase of the International Trade Modernisation initiative.