EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 80
Issued by the Authority of the Minister for Justice and Customs
Customs Act 1901
Customs Amendment Regulations 2005 (No. 3)
Subsection 270(1) of the Customs Act 1901 (the Act) provides in part that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the Act or for the conduct of any business relating to the Customs.
The purpose of the amending Regulations is to amend the Customs Regulations 1926 (the Principal Regulations) as a consequence of the removal of the requirement to pay a refund application fee from the Act.
The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) contains amendments to the Act. Item 43 of Schedule 3 to the ITM Act repealed subsections 163(1B), 163(1C) and 163(1D) of the Act on 18 May 2005. Those subsections required refund application fee to be paid when most refund applications are made.
Items 1 to 6 of Schedule 1 to the amending Regulations amend the Principal Regulations to remove the references to refund application fees. Item 7 of Schedule 1 to the amending Regulations omits regulation 128AB of the Principal Regulations which prescribes a computer system for the purposes of subsection 163(1D) of the Act.
No consultation was undertaken in relation to the amending Regulations as they are of a minor or machinery nature and do not substantially alter existing arrangements.
Regulations 1, 2 and 3 of the amending Regulations commence on the day after they are registered. Schedule 1 to the amending Regulations commence on 18 May 2005.
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Overview
The Customs Amendment Regulations 2005 (No. 3) were introduced to amend the Customs Regulations 1926, following the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. The primary aim of the 2001 Act was to modernise Australia's customs legislation in line with international trade practices, which included the removal of the requirement to pay a refund application fee as stipulated by certain subsections of the Customs Act 1901. The Customs Amendment Regulations 2005 (No. 3) were enacted to ensure that the Customs Regulations 1926 reflected this legislative change by removing references to the refund application fee and eliminating related regulatory provisions. Issued by the Authority of the Minister for Justice and Customs, these Regulations were deemed minor and did not require extensive consultation as they primarily served to streamline and update existing administrative procedures without significantly altering the substantive legal framework.
Scope and Application
The Customs Amendment Regulations 2005 (No. 3) apply to the Customs Act 1901, specifically addressing the removal of the requirement to pay a refund application fee as a consequence of amendments made by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. The Regulations affect all persons and entities engaged in customs business in Australia, including importers, exporters, and customs brokers, by removing references to refund application fees in the Customs Regulations 1926. This amendment streamlines the process for making refund applications by eliminating the need to pay a fee, which previously applied to most refund applications under subsections 163(1B), 163(1C), and 163(1D) of the Customs Act. The Regulations have a national jurisdictional reach, impacting all areas within Australia where customs transactions occur. There are no exclusions or exemptions specified in the amending Regulations, which are considered of minor or machinery nature and do not substantially alter existing arrangements. The Regulations themselves are subordinate instruments that extend the application of the Customs Act by aligning the Customs Regulations 1926 with the recent legislative changes.
Key Provisions
The Customs Amendment Regulations 2005 (No. 3) primarily serve to align the Customs Regulations 1926 with recent legislative changes introduced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. Specifically, the Regulations amend the Customs Regulations to reflect the removal of the requirement to pay a refund application fee under the Customs Act 1901, effective from 18 May 2005 (Items 1 to 6, Schedule 1). This adjustment follows the repeal of subsections 163(1B), 163(1C), and 163(1D) of the Customs Act, which previously mandated the payment of such fees for most refund applications (Item 43, Schedule 3, ITM Act). Additionally, the Regulations remove references to the computer system prescribed for processing refund applications under subsection 163(1D) of the Act, which is now obsolete (Item 7, Schedule 1).
These Regulations impose specific obligations on entities involved in making refund applications under the Customs Act. Firstly, any person or entity submitting an application for a customs refund is no longer required to pay an application fee, as the relevant legislative provisions have been repealed. Furthermore, the amendments ensure that the Customs Regulations accurately reflect current legal requirements, thereby streamlining the process for refund applications. The Regulations also mandate that any references to the previously prescribed computer system for processing these applications are omitted, aligning the regulatory framework with the current legislative state.
Violations of the Customs Act and subsequent Regulations can lead to various civil and criminal penalties. While the specific offences and penalties are detailed within the Customs Act itself, potential consequences for non-compliance may include fines, imprisonment, or both, depending on the severity and nature of the breach. For instance, providing false or misleading information in a refund application could result in substantial fines, with maximum penalties varying based on the specific offence committed. Additionally, persistent or egregious breaches may lead to criminal charges, further emphasizing the importance of adherence to the regulatory requirements.
In summary, the Customs Amendment Regulations 2005 (No. 3) are instrumental in updating the Customs Regulations to reflect the legislative changes introduced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001. These Regulations mandate the removal of refund application fees and outdated references to a computer system for processing such applications, thereby ensuring compliance with the current legal framework. Non-compliance with the Customs Act and these Regulations can result in significant civil and criminal penalties, highlighting the importance of adhering to the prescribed requirements.