EXPLANATORY STATEMENT
Issued by the Comptroller-General of Customs
Customs Act 1901
Customs (Australian Trusted Trader Programme) Amendment (Obligation to Pay Import Declaration Processing Charge) Rule 2021
Authority
Section 179 of the Customs Act 1901 (the Customs Act) allows the Comptroller-General of Customs (the Comptroller-General) to prescribe rules, by legislative instrument, for and in relation to the Australian Trusted Trader Programme (ATT program).
Background
The ATT program is a voluntary trade facilitation initiative for business that demonstrate a secure supply chain and compliant trade practices. Accredited businesses are rewarded with access to a range of trade facilitation benefits under the program including in relation to reporting, movement and clearance of goods.
The regulatory framework for ATT program consists of three elements:
(a) The Customs Act – which provides the necessary heads of power to implement key aspects of ATT program;
(b) The Customs (Australian Trusted Trader Programme) Rule 2015 (the Rule) – a legislative instrument which prescribes rules for and in relation to the operation of ATT program including, for example, the qualification criteria, trade facilitation benefits and conditions of participation; and
(c) Trusted trader agreements – which are entered into with qualifying entities and set out further benefits that an entity qualifies for, how certain benefits will apply to that entity and the terms and conditions specific to that entity’s participation in ATT program.
Subparagraph 179(1)(d)(ii) of the Customs Act provides that the Comptroller-General may prescribe rules in relation to obligations that an Australian Trusted Trader (ATT) may be required to satisfy under Part IV (other than Division 1) or Part VI (other than Division 1) of the Customs Act in a way other than required by the relevant Part.
If an obligation is prescribed for the purposes of subparagraph 179(1)(d)(ii), the
Comptroller-General may specify in an trusted trader agreement the way in which this obligation may be satisfied, in accordance with paragraph 176A(3)(b) of the Customs Act.
Purpose of the Instrument
The purpose of the Customs (Australian Trusted Trader Programme) Amendment (Obligation to Pay Import Declaration Processing Charge) Rule 2021 (the Amendment Rule) is to prescribe an obligation for the purposes of subparagraph 179(1)(d)(ii) of the Customs Act.
Subsection 71B(1) of the Customs Act provides that when an import declaration has been communicated to the Department of Home Affairs, the owner of the goods becomes liable to pay import declaration processing charge. Import declaration processing charge is imposed by section 4 of the Import Processing Charges Act 2001. Currently, import declaration processing charge is payable on a transaction by transaction basis for all importers. The obligation to pay import declaration processing charge is contained in Part IV of the Customs Act.
In 2018, ATTs were granted the benefit of paying customs duty on a deferred basis. Instead of paying customs duty on a transaction by transaction basis, customs duty (other the duty on excise-equivalent goods) must be paid on or before the 21st day after the end of the month in which the goods were entered for home consumption. In the 2020-21 Budget, the decision was made to also allow ATTs to defer the payment of import declaration processing charge in the same way.
The Amendment Rule specifies that the obligation to pay import declaration processing charge may be satisfied in a way other than required under Part IV of the Customs Act. This provision will facilitate the Comptroller-General exercising the power under paragraph 176A(3)(b) of the Customs Act to specify in trusted trader agreement that import declaration processing charges must be paid on or before the 21st day after the end of the month in which the goods were entered for home consumption.
This further streamlines accounting for ATT importers and allows one combined payment of customs duty and import declaration processing charge in the month after the goods were entered for home consumption, rather than individual payments in relation to each consignment of goods.
Consultation
The Department of Home Affairs consulted with eligible ATT and industry body representatives. Updates were provided at various ATT forums and to peak industry representatives and all parties supported the measure.
The Office of Best Practice Regulation was consulted (OBPR ID 24570) and advised a Regulatory Impact Statement is not required.
A Statement of Compatibility with Human Rights is set out in the Attachment.
This instrument commences on 1 July 2021.
This is a legislative instrument for the purposes of the Legislation Act 2003.
ATTACHMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Customs (Australian Trusted Trader Programme) Amendment (Obligation to Pay Import Declaration Processing Charge) Rule 2021
This legislative instrument is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Customs (Australian Trusted Trader Programme) Amendment (Obligation to Pay Import Declaration Processing Charge) Rule 2021
Background
The ATT program is a voluntary trade facilitation initiative for business that demonstrate a secure supply chain and compliant trade practices. Accredited businesses are rewarded with access to a range of trade facilitation benefits under the program including in relation to reporting, movement and clearance of goods.
The regulatory framework for ATT program consists of three elements:
(a) The Customs Act – which provides the necessary heads of power to implement key aspects of ATT program;
(b) The Customs (Australian Trusted Trader Programme) Rule 2015 (the Rule) – a legislative instrument which prescribes rules for and in relation to the operation of ATT program including, for example, the qualification criteria, trade facilitation benefits and conditions of participation; and
(c) Trusted trader agreements – which are entered into with qualifying entities and set out further benefits that an entity qualifies for, how certain benefits will apply to that entity and the terms and conditions specific to that entity’s participation in ATT program.
Subparagraph 179(1)(d)(ii) of the Customs Act provides that the Comptroller-General may prescribe rules in relation to obligations that an Australian Trusted Trader (ATT) may be required to satisfy under Part IV (other than Division 1) or Part VI (other than Division 1) of the Customs Act in a way other than required by the relevant Part.
If an obligation is prescribed for the purposes of subparagraph 179(1)(d)(ii), the Comptroller-General may specify in an trusted trader agreement the way in which this obligation may be satisfied, in accordance with paragraph 176A(3)(b) of the Customs Act.
Purpose of the Instrument
The purpose of the Customs (Australian Trusted Trader Programme) Amendment (Obligation to Pay Import Declaration Processing Charge) Rule 2021 (the Amendment Rule) is to prescribe an obligation for the purposes of subparagraph 179(1)(d)(ii) of the Customs Act.
Subsection 71B(1) of the Customs Act provides that when an import declaration has been communicated, to the Department of Home Affairs, the owner of the goods becomes liable to pay import declaration processing charge. Import declaration processing charge is imposed by section 4 of the Import Processing Charges Act 2001. Currently, import declaration processing charge is payable on a transaction by transaction basis for all importers. The obligation to pay import declaration processing charge is contained in Part IV of the Customs Act.
In 2018, ATTs were granted the benefit of paying customs duty of a deferred basis. Instead of paying customs duty on a transaction by transaction basis, customs duty (other the duty on excise-equivalent goods) must be paid on or before the 21st day after the end of the month in which the goods were entered for home consumption. In the 2020-21 Budget, the decision was made to also allow ATTs to defer the payment of import declaration processing charge in the same way.
The Amendment Rule specifies that the obligation to pay import declaration processing charge may be satisfied in a way other than required under Part IV of the Customs Act.
This provision will facilitate the Comptroller-General exercising the power under paragraph 176A(3)(b) of the Customs Act to specify in trusted trader agreement that import declaration processing charges must be paid on or before the 21st day after the end of the month in which the goods were entered for home consumption.
This further streamlines accounting for ATT importers and allows one combined payment of customs duty and import declaration processing charge in the month after the goods were entered for home consumption, rather than individual payments in relation to each consignment of goods.
Human rights implications
The Amendment Rule does not engage any of the applicable rights or freedoms.
Conclusion
The Amendment Rule is compatible with human rights, as it does not raise any human rights issues.
Comptroller-General of Customs