Overview

The Customs Act 1901 was enacted to regulate the importation and exportation of goods into and out of Australia, ensuring compliance with customs laws and the collection of appropriate duties and taxes. The Act includes provisions for the approval of statements related to the clearance of goods, such as the self-assessed clearance declarations for low-value goods. In response to the need for streamlined processes for the clearance of low-value goods, the CEO Instrument of Approval No. 61 of 2005 was introduced to address a specific gap in the legislative framework by approving a standardised self-assessed clearance declaration for air shipments. This instrument was made by the Chief Executive Officer of Customs under the authority granted by the Customs Act 1901 and the Legislative Instruments Act 2003, aiming to facilitate the electronic communication of declarations for low-value goods imported by air, thus enhancing efficiency and compliance in customs procedures.

Scope and Application

The Customs Act 1901 applies to various entities and individuals involved in the importation of goods into Australia, and this Act is supplemented by instruments such as CEO Instrument of Approval No. 61 of 2005. This particular instrument addresses the requirements for the declaration of specified low value goods, particularly those imported by air, through an approved statement. The Act mandates that the owner of such goods or a person acting on their behalf must provide a self-assessed clearance declaration, which must be communicated electronically and can be sent together with a cargo report. This applies to goods that are part of a consignment transported via air and have a value not exceeding the prescribed amount, currently set at $250. The instrument approved by the Chief Executive Officer of Customs serves as a legislative tool, specifying the format and information required for these declarations. The scope of this legislation is national, applying across all states and territories of Australia, ensuring consistency in the customs process for these specific goods. The instrument itself does not contain exclusions or exemptions but rather sets out the procedural requirements for compliance. The approval process for such instruments, including this one, is subject to the provisions of the Legislative Instruments Act 2003, and while the Act allows for disallowance, no consultation was deemed necessary for this minor, procedural instrument.

Key Provisions

The primary operative sections of the legislation are sections 71AAAD and 71AAAF of the Customs Act 1901. Section 71AAAD defines “specified low value goods” as goods included in a consignment transported to Australia in the same ship or aircraft and having a value not exceeding $250 or a prescribed amount. Section 71AAAF mandates that the owner or their representative must provide a self-assessed clearance declaration to Customs for these goods, containing the information outlined in an approved statement. This declaration can be communicated electronically, and may be sent together with a cargo report. The CEO has approved the “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)” as an approved statement for electronically submitting a self-assessed clearance declaration for low value goods imported by air, accompanied by a cargo report. The Act imposes several obligations on the parties it governs. Firstly, owners of specified low value goods must ensure that a self-assessed clearance declaration is made to Customs, containing the necessary information as specified in the approved statement. This requirement extends to any person acting on behalf of the owner. The declaration must be communicated electronically, and may be sent together with a cargo report when the goods are imported into Australia by air. Secondly, the Act mandates that the declaration must include all the information outlined in the approved statement, which has been approved by the CEO. The approved statement, titled “SELF-ASSESSED CLEARANCE DECLARATION (AIR) (TO BE COMMUNICATED WITH A CARGO REPORT)”, is specifically for the electronic communication of declarations for low value goods transported by air. Breaching the requirements of this legislation can lead to various civil and criminal consequences. The penalties for non-compliance can include fines and, in some cases, imprisonment, depending on the severity of the breach. The maximum penalties are not specified within the text of the legislation but are typically outlined in other sections of the Customs Act 1901 or related legislation. Failure to provide the required self-assessed clearance declaration, or providing incorrect information, could result in fines or legal action against the importer or their representative. Additionally, persistent non-compliance may lead to more severe penalties, including potential prosecution under criminal law. It is important for importers to understand and adhere to these requirements to avoid legal repercussions.