EXPLANATORY STATEMENT
CEO Instrument of Approval No. 94 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. 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On 19 July 2005, section 71A was repealed by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) and replaced with three new provisions.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).
Under new section 71D of the Act, if a person making an import declaration does not have the information to complete the declaration, application can be made for permission to examine the goods in the presence of an officer of Customs. Under new section 71DK of the Act, a similar application can be made in respect of a warehouse declaration. New sections 71D and 71DK replace section 71C of the Act, which was repealed by the ITM Act, under which the application for permission to examine the goods was previously made.
Under section 71K of the Act, a documentary application for these permissions must be in an approved form. Under section 71K, the CEO has previously approved the form for applying for permission to examine goods in the presence of an officer of Customs.
However, as a consequence of the repeal of section 71C, the CEO has approved a new form for making a documentary application for permission to examine the goods under new sections 71D and 71DK of the Act.
CEO Instrument of Approval No. 94 of 2005 approves the “Visual Examination Application (B637 JUN/05)” form as an approved form for the purposes of making, by document, an application for permission to examine goods in the presence of an officer of Customs.
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 introduced significant changes to the Customs Act 1901 to modernise international trade processes. One of these changes was the introduction of new procedures for the examination of goods upon importation, which necessitated the approval of new forms for documentary applications. The Customs Act 1901, as amended by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, now requires that an entry for home consumption or warehousing be made under specific sections of the Act. The CEO Instrument of Approval No. 94 of 2005, enacted by the Chief Executive Officer of Customs, addresses the need for an approved form for applications related to the examination of goods by an officer of Customs under the new provisions. This instrument was approved under the Legislative Instruments Act 2003, and it specifies the "Visual Examination Application (B637 JUN/05)" as the approved form for such applications. The instrument was introduced without prior consultation as it is considered minor and does not substantially alter existing arrangements, and it commenced on the day after its registration.
Scope and Application
The Customs Act 1901 governs the import and export of goods into and out of Australia, and one of its key provisions is the requirement for approved forms to be used for certain applications related to the examination of goods by Customs officers. The CEO Instrument of Approval No. 94 of 2005, which approves the “Visual Examination Application (B637 JUN/05)” form, applies to any person or entity making an import declaration or a warehouse declaration under sections 71A, 71DB, or 71DH of the Act. This approval ensures that documentary applications for permission to examine goods in the presence of a Customs officer comply with the legislative requirements. The approval applies across Australia, reflecting the nationwide scope of the Customs Act 1901, and extends to all imports and warehousing activities conducted under the Act. Notably, this instrument does not exclude any specific entities or types of goods from its application, thereby maintaining a broad jurisdictional reach. While the instrument itself is specific, the Customs Act 1901 may be subject to further regulation or clarification through subordinate instruments, which could expand or refine its application in particular contexts.
Key Provisions
The Customs Act 1901 (the Act) has undergone several amendments, including the introduction of new sections that govern the entry of goods for home consumption or warehousing. Section 71A (as amended by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001) now pertains to import declarations and requests for cargo release, while section 71DH deals with warehouse declarations. Furthermore, sections 71D and 71DK permit the application for permission to examine goods in the presence of a Customs officer when necessary information is not available to complete the import or warehouse declaration. These sections are underpinned by section 71K, which stipulates that documentary applications for these permissions must be in an approved form.
The obligations imposed by the Act on the parties involved primarily revolve around the correct use of approved forms for specific applications. For example, section 71K mandates that any documentary application for permission to examine goods must be made using an approved form. This requirement ensures uniformity and compliance with the prescribed procedures. Additionally, the new Visual Examination Application (B637 JUN/05) form, approved by the CEO Instrument of Approval No. 94 of 2005, must be used for such applications under sections 71D and 71DK.
Failure to comply with the requirements of the Act can lead to various consequences. While the explanatory statement does not specify detailed penalties, breaches of customs regulations generally attract significant penalties. Under the Customs Act, offences can result in both civil and criminal penalties. Civil penalties may include fines, with the exact amount depending on the nature and severity of the breach. Criminal penalties can include imprisonment, with maximum penalties varying based on the specific offence. For instance, section 224 of the Act imposes penalties for false statements or misleading information, while section 225 addresses offences related to the evasion of duty or tax. Given the potential severity of the consequences, adherence to the Act's provisions is crucial for all parties involved.