EXPLANATORY STATEMENT
CEO Instrument of Approval No. 5 of 2005
Customs Act 1901
Subsection 4A(1) of the Customs Act 1901 (the 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 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.
Background
Paragraphs 68(1)(d) to (i) of the Act list certain classes of goods which, if imported into Australia, are not required to be entered. Goods that are the accompanied personal or household effects of a passenger of a ship or an aircraft are such a class of goods (paragraph 68(1)(d) refers). Despite being exempt from formal import entry requirements, subsection 71(1) of the Act provides that the owner of such goods “must, in any circumstances specified in the regulations, provide such information, at such time, and in such manner and form as the regulations specify...”.
Regulation 41 of the Customs Regulations 1926 provides that if a Collector requires information under section 71 of the Act, then it must be provided in an approved form or an approved statement. Under regulation 41, the CEO has approved Incoming Passenger Cards, in a number of languages, which are used by arriving passengers to provide information about the passengers accompanied personal or household effects.
From 1 February 2005, new rules took effect providing for an increase in the value of duty free goods that travellers can bring into Australia.
Travellers can now bring the following goods duty and or tax free in their accompanied baggage (group 3 has not been amended):
GROUP 1 - General goods
AUD$900 worth of goods (AUD$450 for people under 18) including gifts, souvenirs, cameras, electronic equipment, leather goods, perfume concentrates, jewellery, watches and sporting equipment. Previously, the concession limit was $400 for adults and $200 for minors.
GROUP 2 – Alcohol
2.25 litres of alcoholic beverages for each passenger aged 18 and over. Previously, the concession limit was 1.125 litres.
GROUP 3 – Tobacco
250 cigarettes, or 250 grams of cigars or tobacco products for each passenger aged 18 and over.
Instrument
Questions 2 and 3 on the former Incoming Passenger Card (No. 15 ARA (Design date 07/03)) have been amended to reflect these new duty free concessions.
CEO Instrument No. 5 of 2005 approves the “Incoming passenger card” form (No. 15 ARA (Design date 03/05)).
CEO Instrument No. 5 of 2005 also revokes CEO Instrument of Approval No. 12 of 2003, which approved the former “Incoming passenger card” form (No. 15 ARA (Design date 07/03)).
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 22 February 2005, when the new Incoming passenger card will be available for use.
Overview
The Customs Act 1901 was enacted to provide for the regulation of imports and exports and to ensure compliance with customs laws. One significant aspect of the Act is the requirement for travellers to provide information about their accompanied personal or household effects when entering Australia. The Act was designed to address the need for streamlined customs processes while maintaining effective control over the importation of goods. The relevant legislature in this instance is the Australian Parliament, which enacted the Customs Act 1901. The policy objective of the Act is to facilitate the movement of goods while ensuring that the necessary information is collected to prevent illegal importation and to collect appropriate duties and taxes. In response to the changes in duty-free allowances, the Chief Executive Officer of Customs approved a new version of the Incoming Passenger Card through CEO Instrument No. 5 of 2005. This update reflects the increased limits on the value of duty-free goods that travellers can bring into the country, ensuring that the form aligns with the current regulations.
Scope and Application
The Customs Act 1901, as amended by the CEO Instrument of Approval No. 5 of 2005, applies to all passengers entering Australia, whether as individuals or within their accompanied personal or household effects. The Act encompasses both direct importation and the declaration of such goods upon arrival, requiring compliance with the prescribed forms and information specified in the approved instruments. The geographic reach of the Act is national, applying uniformly across the Commonwealth of Australia. The Act does not explicitly state exclusions or exemptions; however, the scope of its application is limited to goods that are accompanied personal or household effects of passengers and excludes goods that fall outside these classifications. The Act's application is extended through subordinate instruments such as the Customs Regulations 1926, which detail the requirements for information provision and the approved forms for such declarations. The CEO Instrument of Approval No. 5 of 2005 specifically revokes the previous form approval and introduces updated forms to reflect new duty-free concessions, ensuring that the information provided by passengers aligns with the current regulations.
Key Provisions
The primary operative sections of this legislation concern the approval of a form under the Customs Act 1901 (section 4A(1)) and the process of updating or revoking such approvals (section 4A(2)). The Act provides that an approved form is one that has been approved in writing by the Chief Executive Officer of Customs. The approval process is a disallowable instrument, meaning that it can be reviewed or disallowed by Parliament (section 46A of the Acts Interpretation Act 1901). The instrument also addresses the exemption of certain classes of goods from formal entry requirements, including accompanied personal or household effects of passengers, and the conditions under which information must be provided about these goods (section 71). The specific form approved by the CEO, the Incoming Passenger Card, has been updated to reflect new duty-free concessions (regulation 41).
The obligations imposed by the Act on the parties it governs include the requirement for the Chief Executive Officer of Customs to approve forms in writing, as well as the obligation for the owners of exempt goods to provide information about these goods in the approved form when required by a Collector. The Act also imposes the responsibility on the CEO to ensure that the approved forms, such as the Incoming Passenger Card, are kept up to date with relevant regulations and any changes to duty-free concessions.
Failure to comply with the requirements of the Customs Act 1901 can result in civil or criminal penalties. For example, providing incorrect or incomplete information on the Incoming Passenger Card can lead to fines or other penalties under the Customs Act, and in some cases, may result in the seizure of the goods. The maximum penalties for breaches of the Customs Act can vary depending on the nature and severity of the offence, and can include fines, imprisonment, or both. The Act also provides for the disallowance of instruments made by the CEO, which can result in the instrument being void and having no legal effect.