EXPLANATORY STATEMENT
CEO Instrument of Approval No. 22 of 2005
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 Customs 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 Instrument Act 2003, approved forms 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).
New section 71K, as inserted by the ITM Act, requires an entry or a return for the purposes of subsection 69(5) or 70(7) that is communicated by document to be in an approved form; contain such information as the approved form requires; and be signed in the manner indicated in the approved form.
The existing approved forms have been re-approved under new section 71K/ This approach is consistent with the approach taken in respect of approved statements used to make these communications electronically using COMPILE up until import cut-over time.
Instrument
CEO Instrument of Approval No. 22 of 2005 approves the attached “Nature 30” and the “Nature 30 - Ex-Warehouse (Continuation)” (No. B617 (JUL 2005)) as the approved form for the purposes of communicating to Customs:
a) a documentary import declaration under section 71A of the Customs Act about warehoused goods that are intended to be entered for home consumption;
b) a documentary return for like customable goods under subsection 69(5) of the Customs Act; and
c) a documentary return for special clearance goods under subsection 70(7) of the Customs Act in respect of warehoused goods.
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.
Overview
The CEO Instrument of Approval No. 22 of 2005 amends the Customs Act 1901 by re-approving specific forms for the purpose of communicating with the Australian Customs Service (Customs) under the Integrated Cargo System (ICS). This legislative instrument was introduced to address the transition from previous Customs computer systems to the new ICS, as outlined in the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. The instrument was approved by the Chief Executive Officer of Customs and is in line with the new requirements established by the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004, which specifies the phased implementation of the ICS. The re-approval of the "Nature 30" and "Nature 30 - Ex-Warehouse (Continuation)" forms aims to ensure that the necessary paperwork for customs declarations and returns remains compliant with the updated system. This instrument was enacted without consultation as it is considered to be of a minor or machinery nature and does not significantly alter existing arrangements. The instrument came into effect on 19 July 2005, aligning with the final phase of ICS implementation.
Scope and Application
CEO Instrument of Approval No. 22 of 2005 pertains to the Customs Act 1901, specifically concerning the approved forms required for certain documentary communications to the Australian Customs Service. This instrument applies to entities and individuals involved in the importation of goods and the operation of ships and aircraft entering Australian ports or airports, including importers, cargo reporters, and operators of such vessels. The instrument is designed to facilitate the transition to the Integrated Cargo System (ICS) by re-approving certain forms for use in electronic and documentary communications concerning warehoused goods, like customable goods, and special clearance goods. Geographically, the instrument applies across Australia as part of the national customs regime. While the instrument does not specify exclusions or exemptions, its application is contingent upon the commencement of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 and the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004. The instrument itself, which re-approves the "Nature 30" and "Nature 30 - Ex-Warehouse (Continuation)" forms, is effective from 19 July 2005, aligning with the final phase of the transition to the ICS.
Key Provisions
The CEO Instrument of Approval No. 22 of 2005 (the Instrument) plays a crucial role in modernising the communication framework between the Australian Customs Service and various stakeholders, including importers and cargo reporters. Under section 4A(1) of the Customs Act 1901, the Instrument approves specific forms that must be used when communicating with Customs, ensuring these forms meet the necessary legal and regulatory standards. The approved forms in this Instrument are the "Nature 30" and the "Nature 30 - Ex-Warehouse (Continuation)" forms, which are essential for documenting import declarations and returns, particularly for goods that are warehoused or intended for home consumption. These forms must be filled out in accordance with the requirements set forth in the Customs Act, including containing the requisite information and being signed appropriately.
The obligations imposed by the Instrument on the parties involved, such as importers and cargo reporters, are significant. These parties must ensure that all documentary import declarations and returns are made using the approved forms. For instance, section 71K of the Customs Act mandates that any entry or return communicated by document must be in an approved form and contain the required information. Furthermore, these documents must be signed in the manner specified in the approved form. Failure to comply with these requirements can lead to delays or rejections of the communications, potentially resulting in legal or financial repercussions.
Breaching the requirements outlined in the Instrument can have serious consequences. Under the Customs Act, non-compliance may result in penalties that could include fines or other administrative actions. For instance, if an importer fails to submit a return in the approved form or omits required information, Customs may impose a penalty. The exact penalties are not detailed in the Instrument but are typically aligned with the general penalties stipulated under the Customs Act. In severe cases, persistent non-compliance could lead to more significant legal actions, including potential prosecution under the Act, which might result in substantial fines or even imprisonment, depending on the severity of the breach.