EXPLANATORY STATEMENT
CEO Instrument of Approval No. 74 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 163 of the Act provides in part that refunds, rebates and remissions of duty may be made in respect of goods generally, or in respect of goods included in a class of goods.
Paragraph 163(1AA)(a) of the Act provides that regulations may prescribe the manner of making application, either by document or by computer, for such refunds, rebates or remissions.
Paragraph 128(1A)(a) of the Customs Regulations 1926 provides that an application by computer for a refund, a rebate or a remission of duty must be in an approved form.
The “Application for Refund, Rebate and Remission” statement is the approved statement for the purposes of making a computer application for refund, rebate or remission of duty in respect of an import declaration made under the amended Customs Act (as defined in section 4 of the Customs Legislation Amendment (Application of International Trade Modernisation and Other Measures) Act 2003).
The CEO has previously approved statements for making a application by computer for a refund, rebate or remission. However, the new “REFUND, REMISSION OR REBATE APPLICATION” statement is necessary as a result of amendments to the Act made by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act).
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. The computers applications for a refund, rebate or remission require details of the import entry, to which the duty that is the subject of the refund, rebate or remission application relates, to be provided.
On 19 July 2005, section 71A was repealed by the ITM Act and replaced with three new provisions.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).
Therefore, as a consequence of the repeal of section 71A and the new method of entering goods for home consumption under an import declaration, the new “REFUND, REMISSION OR REBATE APPLICATION” statement has been approved and requires the details of the import declaration, as opposed to import entry, to be provided.
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 Act 1901, enacted by the Commonwealth Parliament, serves as the primary legislation governing customs and border control in Australia. The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 introduced significant changes to the customs regime, including the modernisation of the application process for refunds, rebates, and remissions of duty. To address the gap created by these changes, the Customs (Approved Statements) Instrument 2005 was introduced. This instrument, approved by the Chief Executive Officer of Customs, defines an approved statement for the purposes of making a computer application for refund, rebate, or remission of duty in respect of an import declaration made under the amended Customs Act. The policy objective of this legislation is to streamline the customs process and ensure that the application for duty refunds, rebates, and remissions aligns with the modernised customs entry procedures.
Scope and Application
The Customs Act 1901 applies to individuals, businesses, and entities that are involved in the import and export of goods in Australia. This includes the process of applying for refunds, rebates, and remissions of duty on imported goods. The Act applies to all states and territories of Australia, as it is a Commonwealth Act. The "REFUND, REMISSION OR REBATE APPLICATION" statement, which is an approved statement under subsection 4A(1A) of the Customs Act 1901, is used for computer applications for refunds, rebates, or remissions of duty in respect of an import declaration made under the amended Customs Act. The instrument in question was approved by the Chief Executive Officer of Customs and is a legislative instrument under paragraph 6(d) of the Legislative Instruments Act 2003. It was approved as a result of amendments made to the Customs Act by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. The instrument does not contain any exclusions, exemptions, or thresholds, and its application is not extended or restricted through subordinate instruments.
Key Provisions
The Customs Act 1901, in particular Section 163, outlines the process for refunds, rebates, and remissions of duty in respect of imported goods, either generally or within a specified class of goods (Section 163(1AA)(a)). This section mandates that the manner of making an application for such refunds, rebates, or remissions can be either by document or by computer, as prescribed by regulations (Section 163(1AA)(a)). The approved form for computer applications is detailed in paragraph 128(1A)(a) of the Customs Regulations 1926, which stipulates that these applications must be made using an approved statement. The “Application for Refund, Rebate and Remission” statement has been designated as the approved form for making such applications, as per the approval by the Chief Executive Officer of Customs (Section 4A(1A)).
Under the Customs Act, the approved statement must include specific details pertinent to the refund, rebate, or remission application, such as those related to the import entry or import declaration. Prior to 19 July 2005, these details were required from an import entry made under Section 71A of the Act. However, subsequent to the repeal of Section 71A by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, and its replacement with new provisions, the “REFUND, REMISSION OR REBATE APPLICATION” statement now requires details from the import declaration or warehouse declaration, depending on the nature of the entry for home consumption or warehousing. This change was necessitated by the amendments introduced by the ITM Act, which altered the process of entering goods for home consumption and warehousing.
Entities and individuals making computer applications for refunds, rebates, or remissions of duty are required to adhere to the provisions set forth in the approved statement. This includes providing accurate details of the relevant import declaration or warehouse declaration, as applicable, to ensure the proper processing of their applications. Failure to comply with the requirements specified in the approved statement may result in the application being rejected or delayed, thereby affecting the timely processing of the refund, rebate, or remission of duty.
Breaches of the provisions stipulated in the approved statement may lead to various consequences. While specific offences and penalties are not detailed in the explanatory statement, it is implied that non-compliance with the approved form and the requisite details could result in administrative penalties or legal consequences as per the Customs Act 1901. The Act encompasses a range of enforcement mechanisms, including fines and potential legal actions for non-compliance, which could impact the entity or individual involved. The exact penalties would be determined based on the nature and severity of the breach.