EXPLANATORY STATEMENT
CEO Instrument of Approval No. 7 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 IND (Design date 07/03)) have been amended to reflect these new duty free concessions.
CEO Instrument No. 7 of 2005 approves the “Incoming passenger card” form (No. 15 IND (Design date 03/05)).
CEO Instrument No. 7 of 2005 also revokes CEO Instrument of Approval No. 14 of 2003, which approved the former “Incoming passenger card” form (No. 15 IND (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, enacted by the Commonwealth Parliament, governs the regulation and administration of customs and excise in Australia. To address the need for updated documentation that aligns with recent changes in the duty-free allowances for travellers, CEO Instrument No. 7 of 2005 was introduced. This instrument was approved by the Chief Executive Officer of Customs and became effective on 22 February 2005. It replaced the previous Incoming Passenger Card form, which was no longer compliant with the updated duty-free concessions. The policy objective of this instrument is to ensure that travellers provide the necessary information about their accompanied personal or household effects in a standardised and approved format, facilitating smoother customs processing and compliance with current regulations.
Scope and Application
The Customs Act 1901, specifically addressed through CEO Instrument of Approval No. 7 of 2005, governs the use of approved forms for the submission of information by travellers entering Australia. This Act applies to individuals who are entering Australia as passengers on ships or aircraft and bringing accompanied personal or household effects. These effects are exempt from formal import entry requirements but must be declared in accordance with regulations. The geographic reach of this Act is national, as it applies across all jurisdictions in Australia. The Act does not explicitly state exclusions or thresholds for the goods brought in by travellers, but the regulations and CEO instruments provide guidance on the information and forms required. The instrument extends application through subordinate instruments, which detail the specific forms and procedures for reporting accompanied personal effects. The CEO Instrument of Approval No. 7 of 2005 replaces the previous form, reflecting updated duty-free concessions effective from 1 February 2005.
Key Provisions
The key provisions of the legislation establish that an approved form, as defined in subsection 4A(1) of the Customs Act 1901, is one that has been approved in writing by the Chief Executive Officer of Customs. This approval process is subject to the disallowance provisions in section 46A of the Acts Interpretation Act 1901, as per subsection 4A(2). The Act also exempts certain classes of goods, such as accompanied personal or household effects of passengers, from formal entry requirements. However, owners of such goods must provide specified information in a manner and form outlined in the regulations when required. The Customs Regulations 1926, particularly regulation 41, require that information be submitted in an approved form or statement, with Incoming Passenger Cards being the approved format for this purpose.
The legislation imposes specific obligations on individuals who own goods that are exempt from formal entry requirements. These individuals must provide information about their goods as specified in the regulations when required by a Collector under section 71 of the Customs Act 1901. This obligation ensures that Customs can still obtain necessary information about imported goods, even if they are exempt from formal entry. The approved form for this information, as set out in regulation 41, is the Incoming Passenger Card. The CEO has approved these cards in multiple languages, facilitating compliance by international travellers.
The CEO Instrument of Approval No. 7 of 2005 introduces new rules effective from 1 February 2005, which increase the value of duty-free goods travellers can bring into Australia. The updated limits allow for AUD$900 worth of general goods for adults and AUD$450 for those under 18, up from previous limits of AUD$400 and AUD$200 respectively. For alcohol, the new limit is 2.25 litres per adult passenger, up from 1.125 litres. The tobacco limit remains unchanged at 250 cigarettes, or 250 grams of cigars or tobacco products per adult passenger. The CEO Instrument also approves a new version of the Incoming Passenger Card, effective from 22 February 2005, and revokes the previous version approved under CEO Instrument of Approval No. 14 of 2003.
Breach of the obligations set out in the Customs Act 1901 and the Customs Regulations 1926 can lead to various civil and criminal consequences. Although the Explanatory Statement does not detail specific penalties, the general provisions of the Customs Act 1901 provide for fines and imprisonment for non-compliance. For instance, failure to provide required information about exempt goods can result in penalties such as fines up to a certain amount and imprisonment for a specified duration. It is essential for individuals to comply with these obligations to avoid any legal repercussions.