Customs Amendment (Australian Trusted Trader Programme) Act 2015

Administered by Department of Home Affairs

Legislation au C2015A00073 In force Act

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Customs Amendment (Australian Trusted Trader Programme) Act 2015

 

No. 73, 2015

 

 

 

 

 

An Act to amend the Customs Act 1901, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Australian trusted trader programme

Part 1—Main amendments

Customs Act 1901

Part 2—Consequential amendments

Australian Border Force Act 2015

 

 

 

Customs Amendment (Australian Trusted Trader Programme) Act 2015

No. 73, 2015

 

 

 

An Act to amend the Customs Act 1901, and for related purposes

[Assented to 25 June 2015]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Customs Amendment (Australian Trusted Trader Programme) Act 2015.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

25 June 2015

2.  Schedule 1, Part 1

As follows:

(a) if this Act receives the Royal Assent before 1 July 2015—1 July 2015;

(b) if this Act receives the Royal Assent on or after 1 July 2015—the day after this Act receives the Royal Assent.

1 July 2015

(paragraph (a) applies)

3.  Schedule 1, Part 2

As follows:

(a) if this Act receives the Royal Assent before 1 July 2015—immediately after the commencement of section 54 of the Australian Border Force Act 2015;

(b) if this Act receives the Royal Assent on or after 1 July 2015—the day after this Act receives the Royal Assent.

1 July 2015

(paragraph (a) applies)

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Australian trusted trader programme

Part 1—Main amendments

Customs Act 1901

1  Subsection 4(1)

Insert:

rules, in relation to Part XA, has the meaning given by section 179.

trusted trader agreement means an agreement entered into under section 176A between the Comptroller‑General of Customs and an entity, and includes such an agreement as varied and in force from time to time.

2  At the end of Division 1A of Part IV

Add:

49C  Obligations under this Part may be satisfied in accordance with a trusted trader agreement

 (1) An entity is released from an obligation that the entity would otherwise be required to satisfy under a provision of this Part (other than Division 1) if the obligation:

 (a) is of a kind prescribed by rules for the purposes of Part XA; and

 (b) is specified in those rules as an obligation from which an entity may be released; and

 (c) is specified in a trusted trader agreement between the Comptroller‑General of Customs and the entity.

 (2) If:

 (a) an obligation must be satisfied under a provision of this Part (other than Division 1); and

 (b) the obligation:

 (i) is of a kind prescribed by rules for the purposes of Part XA; and

 (ii) is specified in those rules as an obligation that may be satisfied in a way other than required by this Part; and

 (iii) is specified in a trusted trader agreement between the Comptroller‑General of Customs and an entity;

then, despite the relevant provision, the entity may satisfy the obligation in the way specified in the trusted trader agreement.

3  Before Division 1 of Part VI

Insert:

Division 1AAA—Preliminary

107  Obligations under this Part may be satisfied in accordance with a trusted trader agreement

 (1) An entity is released from an obligation that the entity would otherwise be required to satisfy under a provision of this Part (other than Division 1) if the obligation:

 (a) is of a kind prescribed by rules for the purposes of Part XA; and

 (b) is specified in those rules as an obligation from which an entity may be released; and

 (c) is specified in a trusted trader agreement between the Comptroller‑General of Customs and the entity.

 (2) If:

 (a) an obligation must be satisfied under a provision of this Part (other than Division 1); and

 (b) the obligation:

 (i) is of a kind prescribed by rules for the purposes of Part XA; and

 (ii) is specified in those rules as an obligation that may be satisfied in a way other than required by this Part; and

 (iii) is specified in a trusted trader agreement between the Comptroller‑General of Customs and an entity;

then, despite the relevant provision, the entity may satisfy the obligation in the way specified in the trusted trader agreement.

4  After Part X

Insert:

Part XA—Australian Trusted Trader Programme

Division 1—Preliminary

176  Establishment of the Australian Trusted Trader Programme

 (1) The Comptroller‑General of Customs may, in accordance with this Part, establish a programme to provide trade facilitation benefits to entities.

 (2) The programme is to be known as the Australian Trusted Trader Programme.

Division 2—Trusted trader agreement

Subdivision A—Assessment of qualification criteria based on documentary evidence

176A  Trusted trader agreement may be entered into

 (1) The Comptroller‑General of Customs may enter into an agreement (a trusted trader agreement) with an entity if:

 (a) the entity nominates itself to participate in the Australian Trusted Trader Programme; and

 (b) the Comptroller‑General of Customs considers that it is reasonably likely that the entity will satisfy the qualification criteria set out in the rules.

 (2) In deciding whether to enter into a trusted trader agreement, the Comptroller‑General of Customs must consider:

 (a) any matter set out in the rules; and

 (b) any other matter that he or she considers relevant.

 (3) If a trusted trader agreement is entered into with an entity:

 (a) the agreement confers interim trusted trader status on the entity; and

 (b) the entity may receive benefits of a kind prescribed by the rules and specified in the agreement.

176B  Nomination process

 (1) A nomination to participate in the Australian Trusted Trader Programme may be made by an entity by document or electronically.

 (2) A documentary nomination must:

 (a) be communicated to the Comptroller‑General of Customs; and

 (b) be in an approved form; and

 (c) contain the information required by the approved form; and

 (d) be signed in a manner indicated by the approved form.

 (3) An electronic nomination must communicate such information as is set out in an approved statement.

Subdivision B—Validation of qualification criteria based on physical inspection and audit

177  Variation of a trusted trader agreement

 (1) This section applies if:

 (a) a trusted trader agreement is entered into with an entity; and

 (b) the Comptroller‑General of Customs is satisfied that the entity satisfies the qualification criteria set out in the rules.

 (2) The Comptroller‑General of Customs may vary a trusted trader agreement to provide for:

 (a) the entity to be released from an obligation, of a kind prescribed by the rules and specified in the agreement, that the entity would otherwise be required to satisfy under Part IV (other than Division 1) or Part VI (other than Division 1); or

 (b) the entity to satisfy an obligation, of a kind prescribed by the rules and specified in the agreement, that the entity would otherwise be required to satisfy under Part IV (other than Division 1) or Part VI (other than Division 1) in a way specified in the agreement.

Note: Parts IV and VI deal with the importation and the exportation of goods, respectively.

 (3) The Comptroller‑General of Customs may vary a trusted trader agreement to provide for benefits of a kind prescribed by the rules and specified in the agreement.

 (4) In deciding whether to vary a trusted trader agreement, the Comptroller‑General of Customs must consider:

 (a) any matter set out in the rules; and

 (b) any other matter that he or she considers relevant.

 (5) If a trusted trader agreement is varied:

 (a) the agreement confers ongoing trusted trader status on the entity; and

 (b) the entity may receive benefits of a kind prescribed by the rules and specified in the agreement.

Subdivision C—General provisions relating to trusted trader agreements

178  Terms and conditions of trusted trader agreements

  A trusted trader agreement may be subject to:

 (a) conditions prescribed by the rules; and

 (b) terms and conditions specified in the agreement.

178A  Variation, suspension or termination of trusted trader agreements

 (1) The Comptroller‑General of Customs may vary, suspend or terminate a trusted trader agreement if the Comptroller‑General of Customs reasonably believes that the entity to which the agreement relates has not complied, or is not complying, with:

 (a) any condition prescribed by the rules; or

 (b) any term or condition specified in the agreement.

 (2) In deciding whether to vary, suspend or terminate a trusted trader agreement, the Comptroller‑General of Customs must consider:

 (a) any matter set out in the rules; and

 (b) any other matter that he or she considers relevant.

 (3) If subsection (1) applies, the trusted trader agreement must be varied, suspended or terminated in accordance with the procedure prescribed by the rules.

Division 3—Register of Trusted Trader Agreements

178B  Register of Trusted Trader Agreements

 (1) The Comptroller‑General of Customs may maintain a register, to be known as the Register of Trusted Trader Agreements, containing information of a kind prescribed by the rules in relation to each trusted trader agreement entered into under this Part.

 (2) The Register of Trusted Trader Agreements is to be made publicly available.

 (3) The Register of Trusted Trader Agreements is not a legislative instrument.

Division 4—Rules

179  Rules

 (1) The Comptroller‑General of Customs may, by legislative instrument, prescribe rules for and in relation to the following:

 (a) the qualification criteria in relation to which a trusted trader agreement may be:

 (i) entered into under section 176A; or

 (ii) varied under section 177;

 (b) the matters that the Comptroller‑General of Customs must consider when deciding whether to:

 (i) enter into a trusted trader agreement under section 176A; or

 (ii) vary the agreement under section 177;

 (c) the conditions on which an entity participates in the Australian Trusted Trader Programme;

 (d) the kind of obligation:

 (i) that an entity may be released from under Part IV (other than Division 1) or Part VI (other than Division 1); or

 (ii) that an entity may be required to satisfy under Part IV (other than Division 1) or Part VI (other than Division 1) in a way other than required by the relevant Part;

 (e) the kind of benefits that an entity may receive under a trusted trader agreement;

 (f) any criteria to be satisfied for an entity to receive benefits of a kind mentioned in paragraph (e);

 (g) any other conditions to which a trusted trader agreement may be subject;

 (h) the procedures that the Comptroller‑General of Customs must follow when varying, suspending or terminating a trusted trader agreement under section 178A;

 (i) the matters that the Comptroller‑General of Customs must consider when deciding whether to vary, suspend or terminate a trusted trader agreement under section 178A;

 (j) the kinds of information that may be published on the Register of Trusted Trader Agreements, including:

 (i) that an entity has entered into a trusted trader agreement; and

 (ii) whether the agreement confers interim or ongoing trusted trader status on the entity; and

 (iii) the kinds of benefits that the entity is receiving, or will receive, under the agreement; and

 (iv) whether the agreement is in force; and

 (v) whether the agreement is or has been suspended; and

 (vi) whether the agreement has been terminated.

 (2) For the purpose of paragraph (1)(d):

 (a) a rule prescribed for the purposes of subparagraph (1)(d)(i) must specify that the obligation is one from which an entity may be released; and

 (b) a rule prescribed for the purposes of subparagraph (1)(d)(ii) must specify that the obligation is one that may be satisfied by an entity in a way other than required by Part IV (other than Division 1) or Part VI (other than Division 1).

 (3) The Comptroller‑General of Customs may, by legislative instrument, also make rules prescribing matters:

 (a) required or permitted by this Part to be prescribed by the rules; or

 (b) necessary or convenient to be prescribed for carrying out or giving effect to this Part.

 (4) To avoid doubt, rules made under this section may not do the following:

 (a) create an offence or civil penalty;

 (b) provide powers of:

 (i) arrest or detention; or

 (ii) entry, search or seizure;

 (c) impose a tax;

 (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

 (e) directly amend the text of this Act.

5  After paragraph 273GA(1)(jb)

Insert:

 (jc) a decision of the Comptroller‑General of Customs to refuse to enter into a trusted trader agreement under subsection 176A(1);

 (jd) a decision of the Comptroller‑General of Customs to refuse to vary a trusted trader agreement under subsection 177(2);

 (je) a decision of the Comptroller‑General of Customs to vary, suspend or terminate a trusted trader agreement under subsection 178A(1);

Part 2—Consequential amendments

Australian Border Force Act 2015

6  Subsection 54(1)

After “law of the Commonwealth”, insert “(other than section 179 of the Customs Act 1901)”.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 3 June 2015

Senate on 17 June 2015]

 

(86/15)

 

Overview

The Customs Amendment (Australian Trusted Trader Programme) Act 2015, enacted on 25 June 2015, amends the Customs Act 1901 to introduce the Australian Trusted Trader Programme. This Act was introduced by the Parliament of Australia to create a framework for trade facilitation, allowing trusted traders to benefit from streamlined customs processes. The primary objective is to enhance efficiency and security in trade by recognising entities that consistently comply with customs regulations, thereby reducing unnecessary administrative burdens. The Act allows the Comptroller-General of Customs to enter into agreements with entities that meet certain criteria, enabling these entities to receive trade facilitation benefits such as expedited clearance and reduced documentation requirements. The Act also makes consequential amendments to the Australian Border Force Act 2015, ensuring that the powers and functions of the Comptroller-General of Customs under the Customs Act are clearly delineated from those under the new legislation. By providing a structured pathway for entities to gain trusted trader status, the Act aims to foster a more efficient and reliable trading environment, benefiting both businesses and the government through improved compliance and reduced processing times.

Scope and Application

The Customs Amendment (Australian Trusted Trader Programme) Act 2015 amends the Customs Act 1901 to introduce the Australian Trusted Trader Programme, aimed at facilitating trade for eligible entities. This Act applies to entities that nominate themselves for participation in the programme and subsequently enter into a trusted trader agreement with the Comptroller-General of Customs. The programme is designed to provide trade facilitation benefits to these entities by potentially releasing them from certain obligations under the Customs Act 1901 or allowing them to satisfy those obligations in alternative ways as specified in their trusted trader agreements. The Act applies across Australia, as it is a Commonwealth Act, and its provisions are enforced by the Australian Border Force. The Comptroller-General of Customs is responsible for entering into trusted trader agreements, varying them, and maintaining the Register of Trusted Trader Agreements, which is made publicly available. The Act allows for the establishment of qualification criteria, conditions, and benefits through rules made by the Comptroller-General of Customs, although these rules cannot create offences, provide certain powers, impose taxes, or directly amend the Act's text. The Act does not specify any exclusions or thresholds for participation but provides mechanisms for the variation, suspension, or termination of trusted trader agreements if an entity is found not to comply with the rules or terms of the agreement. The Act also includes consequential amendments to the Australian Border Force Act 2015 to ensure alignment with the new trusted trader provisions.

Key Provisions

The Customs Amendment (Australian Trusted Trader Programme) Act 2015 introduces several significant changes to the Customs Act 1901, primarily focusing on the establishment and operation of the Australian Trusted Trader Programme. Section 176A (Schedule 1, Part 1, Division 2, Subdivision A) allows the Comptroller-General of Customs to enter into an agreement, known as a trusted trader agreement, with an entity that nominates itself for participation in the programme. The Comptroller-General must consider certain matters, including those outlined in the rules and any other relevant considerations, before deciding whether to enter into such an agreement. If a trusted trader agreement is established, the entity is granted interim trusted trader status and may receive benefits as specified in the agreement and prescribed by the rules (Section 176A). Sections 107 and 49C (Schedule 1, Part 1, Division 1AAA) clarify that entities participating in the Australian Trusted Trader Programme can be released from certain obligations under Parts IV and VI of the Customs Act, provided these obligations are prescribed by rules, specified in the rules as eligible for release or alternative satisfaction, and detailed in the trusted trader agreement (Sections 107 and 49C). Furthermore, if an obligation can be satisfied in a manner other than that required by the relevant parts of the Act, and this alternative method is specified in the trusted trader agreement, the entity can comply with the obligation in the manner outlined in the agreement (Sections 107 and 49C). The Act imposes several obligations on the Comptroller-General of Customs and participating entities. The Comptroller-General must consider various matters when deciding whether to enter into or vary a trusted trader agreement, and when determining whether to vary, suspend, or terminate such an agreement (Sections 176A, 177, and 178A). The trusted trader agreements themselves can include specific terms and conditions, and must adhere to any conditions prescribed by the rules (Sections 178 and 178A). Additionally, the Comptroller-General is required to maintain a publicly accessible Register of Trusted Trader Agreements, detailing information prescribed by the rules for each agreement (Section 178B). The Act also outlines potential penalties and consequences for breaches. While rules made under Section 179 cannot create offences or civil penalties, provide powers of arrest or detention, impose taxes, or directly amend the text of the Customs Act, they can include provisions for the variation, suspension, or termination of trusted trader agreements if an entity fails to comply with the rules or the terms of the agreement (Section 178A). Furthermore, decisions by the Comptroller-General to refuse to enter into or vary a trusted trader agreement, or to vary, suspend, or terminate such an agreement, are subject to internal review under the Administrative Appeals Tribunal Act 1975 (Section 273GA).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.