EXPLANATORY STATEMENT
CEO Instrument of Approval No. 71 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On 19 July 2005, section 71A was repealed by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) and replaced with three new provisions.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) 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 71F of the Act, at any time after an import entry that has been communicated to Customs but before the goods to which it relates are dealt with in accordance with the entry, the entry may be withdrawn.
Under section 71L of the Act, a electronic withdrawal of an import entry must communicate such information as is set out in an approved statement. Under section 71L, the CEO has previously approved the form for making a electronic withdrawal of an import entry .
However, as a consequence of the repeal of section 71A and the three new methods of entering goods for home consumption or warehousing, the CEO has approved a new “WITHDRAWAL OF A DECLARATION” statement for the purpose of making an electronic withdrawal of an import entry to include references to these new methods.
CEO Instrument No. 71 of 2005 approves the “WITHDRAWAL OF A DECLARATION” 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.
Overview
The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 was enacted to modernise Australia's customs legislation, aligning it with contemporary international trade practices and improving the efficiency and effectiveness of customs operations. This Act sought to address the gaps and problems associated with outdated customs processes, ensuring they met the needs of modern trade and commerce. Enacted by the Australian Parliament, the policy objective of this Act was to streamline customs procedures and enhance the customs system's capacity to facilitate trade while maintaining robust regulatory oversight.
In line with these objectives, the Customs Act 1901 was subsequently amended, introducing new methods for entering goods for home consumption or warehousing, which were intended to simplify and expedite the process of importing goods into Australia. To facilitate these changes, the CEO Instrument of Approval No. 71 of 2005 was introduced, approving a new "WITHDRAWAL OF A DECLARATION" statement. This statement allows for the electronic withdrawal of an import entry, reflecting the updated methods of entering goods as per the new provisions of the Customs Act 1901. The instrument was issued under the authority of the Legislative Instruments Act 2003 and, as it was of a minor or machinery nature, did not require consultation before its creation.
Scope and Application
The Customs Act 1901 applies to all goods imported into Australia and those intended for importation, governing their entry for home consumption or warehousing. The Act specifically regulates the process of making import entries, which now includes import declarations for home consumption, requests for cargo release, and warehouse declarations. The CEO Instrument of Approval No. 71 of 2005 amends the approved statement for electronic withdrawals of import entries to reflect the changes introduced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. This instrument applies nationally, as it pertains to the customs procedures across Australia. The approval of the "WITHDRAWAL OF A DECLARATION" statement by the CEO allows for the electronic withdrawal of import entries in accordance with the new methods defined in the Customs Act, ensuring that the process aligns with contemporary trade practices. There are no exclusions or exemptions mentioned in the context provided, and the instrument does not require consultation as it is deemed minor and does not substantially alter existing arrangements. The instrument comes into effect on the day after its registration.
Key Provisions
The primary operative sections of this legislation (F2005L02769) are subsections 4A(1A) and 4(2) of the Customs Act 1901, which together establish the framework for approved statements. An approved statement is defined as one that is approved in writing by the Chief Executive Officer of Customs (CEO) (subsection 4A(1A)). This instrument by which a statement is approved is a disallowable instrument (subsection 4(2)). This means that the CEO's approval of the "WITHDRAWAL OF A DECLARATION" statement is subject to potential disallowance by Parliament. Additionally, the Customs Act 1901, particularly sections 71F and 71L, govern the withdrawal of an import entry, and the new “WITHDRAWAL OF A DECLARATION” statement has been approved to reflect the changes made by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001.
The obligations and requirements imposed by this legislation are primarily on the CEO of Customs. The CEO must approve the "WITHDRAWAL OF A DECLARATION" statement to ensure it aligns with the updated methods of entering goods for home consumption or warehousing. The statement must communicate all necessary information required for an electronic withdrawal of an import entry, as stipulated in section 71L of the Customs Act 1901. Additionally, the CEO must ensure the statement is consistent with the legislative instruments and does not substantially alter existing arrangements, reflecting the minor or machinery nature of the approval process.
The legislation does not explicitly outline specific offences, penalties, or consequences for breaches within the CEO Instrument No. 71 of 2005. However, under the broader framework of the Customs Act 1901, any failure to comply with the requirements for import entries or the proper withdrawal of such entries could potentially lead to civil or criminal penalties. These may include fines, imprisonment, or other penalties as prescribed by the Act, depending on the severity and intent behind the breach. The specifics of these penalties would be governed by the overarching provisions of the Customs Act 1901 and other relevant laws.