EXPLANATORY STATEMENT

CEO Instrument of Approval No. 65 of 2005

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 4(2) of the Act provides that the instrument by which a statement 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 Instruments Act 2003, approved statements are legislative instruments.

Background

Section 68 of the Act provides that goods that are imported into Australia and goods that are intended to be imported into Australia must be entered for home consumption or warehousing.  Prior to 19 July 2005, an entry for home consumption or warehousing was made under section 71A of the Act as an import entry.

On 19 July 2005, section 71A was repealed by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) and replaced with three new provisions.  An entry for home consumption is now made under section 71A of the Act (as an import declaration in relation to imported goods or warehoused goods) or under section 71DB of the Act (as a request for cargo release).  An entry for warehousing is made under section 71DH of the Act (as a warehouse declaration).  The three new methods of entering goods for either home consumption or warehousing are included in the new definition of import entry in subsection 4(1) of the Act.

Under section 71L of the Act, an import entry that is communicated to Customs electronically must communicate such information as is set out in an approved statement.  Under section 71L, the CEO has previously approved the statement setting out all the information that was required to be included in a computer import entry in respect of imported goods being entered for home consumption.  

However, as a consequence of the repeal and replacement of section 71A by the ITM Act, the CEO has approved the new ?????? statement for the purposes of making an electronic import entry in respect of imported goods being entered for home consumption.  The new statement will also refer to the new method of making an import entry as an import declaration.

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 included in a consignment consigned otherwise than through the post and that are all transported to Australia in the same ship or aircraft and that have a value not exceeding $250 or such other amount as is prescribed are such a class of goods (paragraph 68(1)(f) refers). 

New section 71AAAD of the Act, which was also inserted into the Act by the ITM Act with effect from 19 July 2005, provides that goods of a kind referred to in paragraph 68(1)(f) are defined as “specified low value goods”.  Section 71AAAF, which was also inserted into the Act by the ITM Act with effect from 19 July 2005, provides that the owner of specified low value goods, or a person acting on behalf of the owner, must give Customs a declaration (self-assessed clearance declaration) under section 71 containing the information that is set out in an approved statement.  The self-assessed clearance declaration must also be communicated electronically to Customs.

The new statement “Import Declaration (N10)” has also been approved for the purposes of communicating an electronic self-assessed clearance declaration where it is not communicated together with a cargo report.

Section 71L of the Act also provides that a return for the purposes of subsection 70(7) of the Act that is communicated to Customs electronically must communicate such information as is set out in an approved statement.  Subsection 162A(2A) of the Act provides for the communication of information to Customs in relation to goods to be imported temporarily without payment of duty.  Subsection 162AA(4) provides that an application communicated by computer for the purposes of subsection 162A(2A) must be communicated by computer in the manner indicated in an approved statement relating to the application and include the information indicated in the approved statement.

The new statement has also been approved purposes of communicating to Customs:

a)        an electronic return for special clearance goods under subsection 70(7) of the Act;

b)        an electronic application under subsection 162A(2A) of the Act to take delivery of goods temporarily imported without duty; and

The statement that the CEO had previously approved setting out all the information that was required to be included in an computer import entry in respect of imported goods being entered for home consumption was also approved for the two additional purposes in paragraphs (a) and (b).  These additional purposes have not been affected by the ITM Act.

CEO Instrument No. 65 of 2005 approves the “Import Declaration (N10)” statement.

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.