EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Local Government, Territories and Roads
Christmas Island Act 1958
Customs Amendment Ordinance 2005 (No. 1)
Cocos (Keeling) Islands Act 1955
Customs Amendment Ordinance 2005 (No. 1)
Subsection 9(1) of the Christmas Island Act 1958 (the CI Act) provides that the Governor-General may make Ordinances for the peace, order and good government of the Territory.
Subsection 12(1) of the Cocos (Keeling) Islands Act 1955 (the C(K)I Act) provides that the Governor-General may make Ordinances for the peace, order and good government of the Territory.
Section 7 of the CI Act provides that the laws in force in the Territory of Christmas Island include Ordinances made on or after 1 July 1992, as in force from time to time. Section 7A of the C(K)I Act contains a provision to the same effect in the Territory of the Cocos (Keeling) Islands.
An Ordinance relating to Customs has been made under each of the CI Act and the C(K)I Act, both with the title Customs Ordinance 1993 (the Customs Ordinances). The Indian Ocean Territories Customs Service is established in each of the Territories under the Customs Ordinances.
The Customs Ordinances apply the Customs Act 1901 (the Customs Act) and the Customs Regulations 1926 (the Customs Regulations) in the Territory of Christmas Island and the Territory of the Cocos (Keeling) Islands (the Territories). The Customs Act applies as modified by Schedule 1 to each of the Customs Ordinances and the Customs Regulations apply as modified by Schedule 2 to each of the Customs Ordinances.
The purpose of the amending Ordinances is to amend the application of the Customs Act and the Customs Regulations in the Territories.
The amendments are required as a consequence of the commencement of the remainder of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) by Proclamation on 19 July 2005. The remaining provisions of the ITM Act will amend the Customs Act to introduce various electronic reporting requirements to support the implementation of the new Integrated Cargo System for imports, including mandatory electronic cargo reporting. Consequential amendments to the Customs Regulations are also required to support this implementation.
The Territories do not have the information technology infrastructure necessary to meet the new electronic reporting requirements and such infrastructure in the Territories is not anticipated in the foreseeable future. Therefore, amendments to the Customs Ordinances are required to prevent the new electronic reporting requirements from extending to the Territories, thereby enabling the continuation of existing import processing and reporting in the Territories.
The amending Ordinances achieve this outcome by applying the Customs Act and the Customs Regulations in the Territories in the form existing immediately prior to the commencement of the remainder of the ITM Act on 19 July 2005.
The amending Ordinances amend the Customs Ordinances to refer to the Customs Act and the Customs Regulations as in force on 18 July 2005.
No consultation was undertaken in relation to the amending Ordinances as they are of a minor or machinery nature and do not substantially alter existing arrangements.
These Ordinances commence on 19 July 2005, the same day as the commencement of the remainder of the ITM Act by Proclamation.
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Overview
The Customs Amendment Ordinance 2005 (No. 1), issued under the authority of the Minister for Local Government, Territories and Roads, amends the Customs Ordinances for the Territories of Christmas Island and Cocos (Keeling) Islands to ensure the Customs Act 1901 and the Customs Regulations 1926 apply in a manner that aligns with the existing capabilities of the Indian Ocean Territories Customs Service. Enacted by the Australian Parliament, the primary objective of these amendments is to accommodate the absence of the requisite information technology infrastructure in the Territories, which is necessary to meet the new electronic reporting requirements introduced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. By maintaining the application of the Customs Act and the Customs Regulations as they existed before the commencement of the International Trade Modernisation Act on 19 July 2005, the Ordinances prevent the new electronic reporting requirements from extending to the Territories, thus enabling the continuation of existing import processing and reporting mechanisms. The Ordinances are deemed of a minor or machinery nature, and as such, no formal consultation was conducted.
Scope and Application
The Customs Amendment Ordinance 2005 (No. 1) made under the authority of the Christmas Island Act 1958 and the Cocos (Keeling) Islands Act 1955, applies to the Territories of Christmas Island and the Cocos (Keeling) Islands, respectively. These territories are under the jurisdiction of the Governor-General who has the power to make ordinances for their peace, order and good government. The Customs Ordinances 1993, enacted under these acts, apply the Customs Act 1901 and the Customs Regulations 1926 within these territories. However, the recent amendments are necessitated by the lack of suitable information technology infrastructure in the territories to support the electronic reporting requirements introduced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. These amending ordinances modify the application of the Customs Act and the Customs Regulations in these territories to prevent the new electronic reporting requirements from extending to them, thereby ensuring the continuation of existing import processing and reporting practices. The ordinances amend the Customs Ordinances to refer to the Customs Act and the Customs Regulations as they were in force immediately before the commencement of the remainder of the International Trade Modernisation Act on 19 July 2005.
Key Provisions
The Customs Amendment Ordinance 2005 (No. 1) under the Christmas Island Act 1958 and the Cocos (Keeling) Islands Act 1955 amends the application of the Customs Act 1901 and the Customs Regulations 1926 in the Territories of Christmas Island and the Cocos (Keeling) Islands. Specifically, Section 9(1) of the Christmas Island Act and Section 12(1) of the Cocos (Keeling) Islands Act allow the Governor-General to make Ordinances for the peace, order and good government of the respective Territories. Section 7 of the Christmas Island Act and Section 7A of the Cocos (Keeling) Islands Act incorporate the Customs Ordinance 1993, which applies the Customs Act and Customs Regulations in the Territories, as modified by Schedules 1 and 2 to each Ordinance.
The primary obligation of these amending Ordinances is to adapt the application of the Customs Act and the Customs Regulations to the specific circumstances of the Territories, primarily to avoid imposing new electronic reporting requirements that the Territories are not equipped to handle. This is achieved by applying the Customs Act and Customs Regulations in their form existing on 18 July 2005, before the commencement of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (ITM Act) on 19 July 2005. These amendments ensure that the electronic reporting requirements introduced by the ITM Act do not extend to the Territories, thereby preserving existing import processing and reporting systems.
Any breach of the provisions set out in these Ordinances may lead to civil or criminal consequences depending on the nature of the infringement. However, given the machinery nature of the amending Ordinances and their purpose to align existing laws with new federal requirements without substantially altering current arrangements, specific offences and penalties are not detailed in the explanatory statement. The Ordinances are designed to maintain continuity and avoid disruption in the administration of customs in the Territories. The absence of consultation noted in the explanatory statement suggests that these amendments are technical in nature, aimed at ensuring legislative coherence rather than introducing new substantive obligations or penalties.