EXPLANATORY STATEMENT
CEO Instrument of Approval No. 23 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 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. 23 of 2005 approves the attached “Import Declaration/Return Ex Warehousing (Nature 30)” statement as the approved statement for the purposes of communicating to Customs:
a) an electronic import declaration, under section 71A, about warehoused goods that are intended to be entered for home consumption;
b) an electronic return for like customable goods under subsection 69(5) of the Customs Act in respect of goods that were warehoused immediately after their importation; and
c) an electronic return for special clearance goods under subsection 70(7) of the Customs Act in respect of goods that were warehoused immediately after their importation.
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 Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 was enacted to modernise the international trade practices by updating the Customs Act 1901, thereby addressing the gap in the legislative framework to facilitate electronic communication with the Australian Customs Service. This was achieved through the integration of the Integrated Cargo System, which replaced various legacy systems. The Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2004 further refined the implementation process, allowing for a phased approach to the transition. The CEO Instrument of Approval No. 23 of 2005, made under subsection 4A(1A) of the Customs Act, re-approves specific statements to ensure the continued use of the COMPILE computer system for certain electronic communications until the import cut-over time, thereby providing a smooth transition to the new system. This instrument, which is a disallowable instrument under section 46A of the Acts Interpretation Act 1901, was issued by the Chief Executive Officer of Customs and commenced on 19 July 2005.
Scope and Application
CEO Instrument of Approval No. 23 of 2005 applies to the electronic communication of specific customs declarations and returns, as defined by the Customs Act 1901, and involves the use of the approved statement to facilitate these communications. This approval pertains to entities such as importers, cargo reporters, and other entities involved in the importation of goods in Australia, specifically for transactions involving warehoused goods. The geographic scope of this Act is national, as it concerns the operation of the Integrated Cargo System (ICS) across Australia. The Act does not explicitly state exclusions or exemptions but implies that its application is contingent on the nature and timing of the communications, with specific provisions for the continued use of the COMPILE system until the import cut-over time. The application of this Act may be extended or restricted through subordinate instruments issued by the Chief Executive Officer of Customs, as authorised under section 126DA of the Customs Act. The commencement of this instrument on 19 July 2005 aligns with the phased implementation of the ITM import amendments, providing a transitional period for stakeholders to adjust to the new system.
Key Provisions
The primary sections of CEO Instrument of Approval No. 23 of 2005, as part of the Customs Act 1901, provide for the approval of specific statements for electronic communication with Customs. Section 4A(1A) defines an approved statement as one that is approved by the Chief Executive Officer (CEO) of Customs, while section 4A(2) states that the instrument approving such a statement is a disallowable instrument. According to the Legislative Instruments Act 2003, these approved statements are considered legislative instruments.
Under this instrument, the CEO has approved the “Import Declaration/Return Ex Warehousing (Nature 30)” statement for use in making specific electronic communications with Customs. This includes electronic import declarations about warehoused goods intended for home consumption (section 71A), returns for like customable goods (subsection 69(5)), and returns for special clearance goods (subsection 70(7)), all of which relate to goods warehoused immediately after their importation. These provisions are designed to facilitate the transition to the Integrated Cargo System (ICS) while allowing continued use of the COMPILE computer system until the import cut-over time is reached.
The obligations imposed by this instrument on the parties governed by it include the requirement to use the approved “Import Declaration/Return Ex Warehousing (Nature 30)” statement for specified electronic communications with Customs. This requirement ensures that the approved statement is used for electronic import declarations and returns until the import cut-over time when the ICS must be used instead. Parties must adhere to the timelines set by the CEO, particularly regarding the switch from COMPILE to ICS, to ensure compliance with the Customs Act and related provisions.
Any breach of the requirements set out in this instrument may result in civil or criminal consequences, although specific penalties are not detailed within the explanatory statement. The Customs Act 1901 and related legislation outline various penalties for non-compliance, which can include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any applicable sections of the Customs Act or other related legislation. It is important for all parties to comply with the approved statements and the timelines provided to avoid any legal repercussions.