Overview

The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (ITM Act) introduced significant changes to the Customs Act 1901, aimed at modernising and streamlining the customs process, particularly in relation to the movement of imported goods. One such change is the requirement for electronic movement applications for goods that have not been entered for home consumption or warehousing, with specific stipulations on who can make these applications. The CEO Instrument of Approval No. 69 of 2005, issued under the authority of the Customs Act 1901, further refines these processes by approving a specific statement format for air transport, the "UNDERBOND MOVEMENT APPLICATION – AIR". This instrument was introduced to ensure that the information communicated in electronic movement applications is consistent and comprehensive, facilitating smoother customs operations and compliance. The instrument was enacted by the Chief Executive Officer of Customs and came into effect after registration, without undergoing consultation as it was deemed to be of a minor and technical nature.

Scope and Application

The Customs Act 1901, as amended, applies to the movement of imported goods that are subject to Customs control, requiring an application to be made to Customs for permission to move such goods to a specified location. This Act pertains to the operators of the ships or aircraft that carried the goods, cargo reporters in relation to the goods, or stevedores or depot operators who have, or intend to take, possession of the goods, but notably excludes the owner of the goods in circumstances where the goods have not been entered for home consumption or warehousing. The movement application must be made electronically, with the information communicated conforming to an approved statement as specified by the Chief Executive Officer of Customs. CEO Instrument No. 69 of 2005, which approves the “UNDERBOND MOVEMENT APPLICATION – AIR” statement for goods entered for home consumption or warehousing, is one such example. The geographic and jurisdictional reach of this legislation is national, applying across Australia. There were no consultations conducted under section 17 of the Legislative Instruments Act 2003, as the instrument is considered minor or machinery in nature and does not substantially alter existing arrangements. The instrument comes into effect on the day following its registration.

Key Provisions

The Customs Act 1901, as amended, establishes the process by which goods imported into Australia can be moved from the port of entry to another location. Under section 71E (1) of the Act, applications for permission to move imported goods can be made by specific parties, including the operator of the ship or aircraft that carried the goods, a cargo reporter, or the stevedore or depot operator who has or intends to take possession of the goods. The owner of the goods is not permitted to make such an application if the goods have not been entered for home consumption or warehousing. Movement applications must be made electronically, either when the goods have not been entered for home consumption or warehousing, or when they have been entered for home consumption. This requirement is specified in section 71E (2) of the Act. The approved statement, as outlined in section 71L (1), must contain specific information to accompany the electronic movement application. CEO Instrument No. 69 of 2005 approves the “UNDERBOND MOVEMENT APPLICATION – AIR” statement for goods entered for home consumption or warehousing, although a different approved statement will be required for goods entered for home consumption or warehousing. The obligations imposed on the parties by the Act are quite specific. Firstly, the person responsible for making the movement application must be one of the approved parties, as outlined in section 71E (1). Secondly, the application must be made electronically, as stipulated in section 71E (2). Furthermore, the electronic movement application must include all the information specified in the approved statement, as set out in section 71L (1). This approved statement is designed to ensure that all necessary information is provided to Customs for the movement of imported goods. The Act also imposes a duty on the Chief Executive Officer of Customs to approve statements used in movement applications, as outlined in section 4A(1A). Failure to comply with the requirements of the Customs Act 1901 can result in civil and criminal consequences. For instance, making a false or misleading statement in an application for the movement of imported goods is a criminal offence under section 178 (1) of the Act, carrying a maximum penalty of 10,000 penalty units. Similarly, using false or misleading documents in connection with an application for the movement of imported goods is also a criminal offence under section 178 (2) of the Act, with a maximum penalty of 10,000 penalty units. Additionally, any person who is found to have contravened the Act may be subject to administrative action, including fines and other penalties, as determined by the relevant authorities. It is essential for all parties involved in the movement of imported goods to comply with the provisions of the Customs Act 1901 to avoid any potential legal consequences.