EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 64
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs Amendment Regulations 2008 (No. 3)
Section 270 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.
Section 114F of the Act sets out provisions relating to the notice which must be given to Customs by a person who receives goods for export at certain wharves or airports. Subsection 114F(1A) of the Act provides that a person who takes delivery of goods for export at certain wharves or airports must notify Customs of their receipt of the goods within the period of time prescribed by the Customs Regulations 1926 (the Principal Regulations).
Subregulation 98B(2) of the Principal Regulations previously provided that the prescribed period of time for both wharves and airports was within 3 hours after receipt of the goods.
The purpose of the amending Regulations is to require a person who takes delivery of goods at an airport to give Customs notice of their receipt within 1 hour after receipt of the goods.
In 2005, the Rt Hon Sir John Wheeler conducted a review of airport security and policing in Australia, which recommended, among other things, the shortening of the period of time within which persons at airports who take delivery of goods for export must notify Customs of their receipt of the goods. The basis of this recommendation was to provide Customs with a better opportunity to assess and examine high-risk export air cargo.
The amending Regulations repeal and substitute subregulation 98B(2) of the Principal Regulations. New subregulation 98B(2) creates a table containing two items. Item 1 provides that a person who takes delivery of goods for export at a wharf must notify Customs of their receipt within 3 hours after receipt of the goods; this does not change the previous notification requirement in relation to wharves. Item 2 provides that a person who takes delivery of goods for export at an airport must notify Customs within 1 hour after receipt of the goods; this amends the Principal Regulations to effect the Government's acceptance of the recommendation in the Wheeler Report.
Consultation was undertaken with industry groups and representatives, including Cargo Terminal Operators.
In order to enable industry to adjust to the new reporting timeframe, the amending Regulations commence 21 days after the day they are registered on the Federal Register of Legislative Instruments.
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Overview
The Customs Amendment Regulations 2008 (No. 3) were enacted to address a specific security gap identified in the handling of export goods at Australian airports. This legislative instrument was issued under the authority of the Minister for Home Affairs, in accordance with Section 270 of the Customs Act 1901, which empowers the Governor-General to make regulations necessary for the effective implementation of the Act. The primary objective of these amendments is to align with a recommendation from the 2005 review of airport security and policing conducted by the Rt Hon Sir John Wheeler, which suggested reducing the time within which individuals must notify Customs upon receipt of export goods at airports. This change aims to enhance Customs' capability to assess and scrutinise high-risk export air cargo more promptly. The regulations specifically adjust the notification requirement for airport delivery of export goods to one hour post-receipt, while maintaining the existing three-hour requirement for wharves. This adjustment seeks to balance security needs with practical operational requirements, as confirmed through consultation with relevant industry stakeholders.
Scope and Application
The Customs Amendment Regulations 2008 (No. 3) amends the Customs Regulations 1926, specifically targeting individuals and entities responsible for taking delivery of goods for export at airports. These Regulations mandate that such persons must notify Customs within one hour of receiving the goods, aligning with a recommendation from the 2005 Wheeler Report aimed at enhancing airport security and enabling Customs to better assess high-risk export air cargo. In contrast, the notification period for wharves remains unchanged at three hours. The scope of these Regulations applies nationally across Australia, as they are issued under the authority of the Minister for Home Affairs and fall within the Commonwealth jurisdiction. The Regulations do not specify any exclusions or exemptions, applying broadly to all persons taking delivery of export goods at designated airports. Any further detailed provisions or clarifications may be prescribed through subordinate instruments, though this specific amendment focuses narrowly on the notification timeframes for airports and wharves.
Key Provisions
The Customs Amendment Regulations 2008 (No. 3) introduces significant changes to the notification requirements for individuals and entities that handle goods for export at Australian airports and wharves. According to section 114F(1A) of the Customs Act 1901, individuals who receive goods for export at designated locations must notify Customs within a prescribed period. Subregulation 98B(2) of the Customs Regulations 1926, previously stipulated that notifications must be made within 3 hours for both airports and wharves. The amendment now requires individuals to notify Customs within 1 hour for airport deliveries, while maintaining the 3-hour requirement for wharf deliveries. This change is reflected in the newly introduced subregulation 98B(2), which contains a table specifying different notification periods based on the location.
The obligations imposed by these regulations are clear and specific. For wharves, the requirement remains unchanged, mandating that notifications be made within 3 hours of receiving goods. However, for airports, the obligation now necessitates that notifications occur within 1 hour of receiving goods. This more stringent requirement aims to enhance the capacity of Customs to evaluate and inspect high-risk export air cargo promptly, thereby improving security measures at airports. The regulations are designed to ensure that individuals and entities operating at these locations comply with the updated notification timeframes to facilitate efficient customs oversight.
The amendment also delineates consequences for non-compliance with these obligations. Although the explanatory statement does not explicitly state the penalties for failure to notify Customs within the prescribed timeframes, it is reasonable to infer that non-compliance could result in civil or criminal consequences under the Customs Act 1901. Typically, such breaches might attract penalties that could include fines or, in more severe cases, criminal charges. The specifics of these penalties would likely be governed by the broader provisions of the Customs Act, but the intent of the regulation is to enforce timely notifications to enhance security and regulatory compliance at designated export locations.