EXPLANATORY STATEMENT
CEO Instrument of Approval No. 3 of 2006
Customs Act 1901
Subsection 4A(1A) of the Customs Act 1901 (the 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 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 Instruments Act 2003, approved statements are legislative instruments.
Background
Section 64AB of the Act requires a cargo report to be provided in relation to a ship or aircraft on a voyage or flight to Australia from a place outside Australia. Section 64AB was repealed and replaced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 on 19 July 2005. New subsection 64AB(4B) provides that an electronic cargo report must communicate such information as is set out in an approved statement.
On 14 September 2005, by Instrument of Approval No. 57 of 2005, the CEO approved the “CARGO LIST REPORT” statement as an approved statement for the purposes of a shipping line communicating electronically a cargo report in accordance with section 64AB of the Act.
Item 6 (Responsible Party ID) of that statement requires the Australian Business Number (ABN) or Customs Client Identifier (CCID) of the cargo reporters or the person who entered into a contractual agreement with the cargo reporter to provide cargo reports to Customs. However, under the Act, only a ‘cargo reporter’ is obliged to provide the cargo report to Customs. ‘Cargo reporter’ is defined in subsection 4(1) of the Act as meaning the operator or charterer of the ship or aircraft, the slot charterer in respect of the ship, or a freight forwarder in respect of the ship or aircraft.
The description of the information required under Item 6 of the “CARGO LIST REPORT” statement has been amended so that it is clear that the statutory obligation to provide cargo reports is only on ‘cargo reporters’ and not other persons who may communicate the cargo report to Customs (for example, through a contractual agreement with a cargo reporter) who are not cargo reporters for the purposes of the Act.
CEO Instrument of Approval No. 3 of 2006 revokes CEO Instrument of Approval No. 57 of 2005 and approves the updated version of the “CARGO LIST REPORT” statement as an approved statement for the purposes of a shipping line communicating electronically a cargo report in accordance with section 64AB of the Act.
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 day after it is registered.
Overview
The Customs Act 1901, as amended, governs the regulation of customs and border protection in Australia, and aims to facilitate legitimate trade while preventing illegal activities. In 2006, CEO Instrument of Approval No. 3 was enacted to address a specific issue related to the communication of cargo reports for ships and aircraft arriving from overseas. This instrument was introduced to correct a misinterpretation in the previously approved "CARGO LIST REPORT" statement, specifically regarding the identification of the party responsible for providing the cargo report. The instrument revokes the previous approval of the statement and re-approves an updated version, clarifying that only "cargo reporters" as defined in the Act are obligated to provide the necessary information. The policy objective is to ensure that the statutory obligations are correctly understood and met by those responsible for reporting cargo details to Customs, thereby maintaining the integrity of the customs reporting process.
Scope and Application
The Customs Act 1901 applies to a range of entities including individuals, corporations, and other business entities involved in the import and export of goods into and out of Australia. The Act sets out the requirements for the communication of cargo reports for ships and aircraft arriving from overseas, which are now required to be provided electronically as per the approved statement defined under the Act. This approved statement, known as the "CARGO LIST REPORT", is approved by the Chief Executive Officer of Customs and serves as a legislative instrument for the purposes of the Act. Specifically, it applies to shipping lines and other cargo reporters who are responsible for providing cargo reports to Customs. The Act's jurisdiction extends to the Commonwealth of Australia, and it is enforced by the Australian Customs and Border Protection Service. There are no stated exclusions or exemptions in the Act, and the application of the Act may be extended or restricted through subordinate instruments. The updated version of the "CARGO LIST REPORT" statement, approved by CEO Instrument of Approval No. 3 of 2006, replaces the previous version approved by CEO Instrument of Approval No. 57 of 2005.
Key Provisions
The Customs Act 1901 (the Act) has been amended to refine the requirements for cargo reports provided by shipping lines to Australian Customs. Specifically, section 64AB(4B) of the Act mandates that an electronic cargo report must be submitted and must include the information detailed in an approved statement. Pursuant to the Act, the Chief Executive Officer (CEO) of Customs is responsible for approving such statements. In this context, the CEO has approved the “CARGO LIST REPORT” statement (section 64AB(4B)), which delineates the information necessary for the electronic cargo report. The “CARGO LIST REPORT” statement has undergone revisions to clarify the obligations under Item 6, which requires the Australian Business Number (ABN) or Customs Client Identifier (CCID) of the cargo reporters or the person who entered into a contractual agreement with the cargo reporter to provide cargo reports to Customs. It is crucial to note that only the cargo reporters are legally bound to furnish these reports, as defined under subsection 4(1) of the Act.
Entities governed by the Act, specifically cargo reporters, are obligated to provide accurate and timely electronic cargo reports in accordance with the approved “CARGO LIST REPORT” statement. This includes ensuring that the ABN or CCID is correctly provided under Item 6 of the statement. Cargo reporters, which include the operator or charterer of the ship or aircraft, the slot charterer in respect of the ship, or a freight forwarder in respect of the ship or aircraft, must strictly adhere to the format and content specified in the approved statement. This ensures that all necessary information is communicated to Customs to facilitate the inspection and clearance of cargo entering Australia.
Failure to comply with the requirements outlined in the Act and the approved “CARGO LIST REPORT” statement can lead to legal consequences. While the explanatory statement does not detail specific penalties or offences, breaches of the Act can generally result in administrative or legal actions. The consequences may include fines, legal proceedings, or other enforcement actions that are prescribed under the Customs Act 1901 and related legislation. Given the importance of these reports in facilitating international trade, compliance is crucial to avoid disruptions and legal complications.