Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 - Proclamation (07/07/2005)

Administered by Attorney-General's Department

Legislation au F2005L01812 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Justice and Customs

 

Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001

 

Proclamation

 

Subsections 2(2), (3) and (4) and paragraphs 2(5)(a), (b) and (c) of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the Act) relevantly provide that, subject to subsection 2(7) of the Act:

 

a)        Part 4 of Schedule 1 to the Act commences on a day to be fixed by Proclamation (subsection 2(2) refers);

b)        Part 2 of Schedule 3 to the Act (other than item 43) and item 119 in Part 6 of Schedule 3 to the Act commence on a day to be fixed by Proclamation (subsection 2(3) refers);

c)        Part 4 of Schedule 3 to the Act (other than items 82 and 84) commences on a day or days to be fixed by Proclamation (subsection 2(4) refers);

d)        the items in Schedule 1 to the Act other than the items in Part 4 of that Schedule commence on a day or days to be fixed by Proclamation (paragraph 2(5)(a) refers);

e)        the items in Schedule 2 to the Act commence on a day or days to be fixed by Proclamation (paragraph 2(5)(b) refers); and

f)         the items (other than items 109, 119, 123 and 152 to 171) in Parts 1, 3, 5 and 6 of Schedule 3 to the Act commence on a day or days to be fixed by Proclamation (paragraph 2(5)(c) refers).

 

Subsection 2(7) of the Act provides, in part, that if an item in a Schedule (other than Schedule 4) does not commence under subsection 2(2), (3), (4) or (5) within the period of 4 years beginning on the day on which the Act receives the Royal Assent, it commences on the first day after the end of that period.  The Act received the Royal Assent on 20 July 2001.

 

The purpose of the Proclamation is to fix 19 July 2005 as the day on which the following provisions of the Act commence:

 

                 Part 4 of Schedule 1;

                 item 15 in Schedule 1;

                 item 3 in Schedule 2;

                 Part 2 of Schedule 3 (other than item 43);

                 items 67, 69, 70, 71, 75, 76, 78, 79, 80, 81, 85, 86, 87, 88, 89 and 90 of Part 4 of Schedule 3;

                 items 98 and 99 in Part 5 of Schedule 3;

                 item 119 in Part 6 of Schedule 3;

                 items 103, 104, 105, 106, 108, 110, 111, 112, 115, 116, 116A, 116B, 116C, 117, 118, 120, 121, 122, 122A, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 137, 138, 139, 140, 141, 142, 143, 145 and 150 in Part 6 of Schedule 3.

 

The Act amends the Customs Act 1901 (the Customs Act) to, amongst other things, create the legal foundations for communicating electronically with the Australian Customs Service (Customs) using a new computer system known as the Integrated Cargo System (the ICS).  In order to allow people who want to communicate with Customs electronically time to prepare the relevant systems, the amendments in the Act have been proclaimed to commence progressively. 

 

The remaining amendments in the Act were proclaimed to commence on 19 July 2005.  These amendments:

 

a)      extend the time in which Customs can recover short levied or erroneously refunded duty;

b)     require people communicating electronically with Customs in relation to the importation of goods and the arrival of ships and aircraft in Australia to use the ICS;

c)      remove the references to the existing computer systems;

d)     allow an importer who has entered into a contract with the Chief Executive Officer of Customs to provide limited information to Customs at the time he or she imports goods, with a reconciliation required in the month following the importation; and

e)      introduce new obligations in relation to cargo imported into Australia, for example, section 64ABAA of the Customs Act will, in part, require stevedores to provide an electronic outturn report to Customs which identifies the cargo that has been unloaded from a ship at a port.

 

The commencement of the remaining amendments in the Act is linked to the commencement of the Import Processing Charges Act 2001 (the IPC Act) which imposes new charges for import processing. A Proclamation under subsection 2(3) of the Act is needed to trigger the commencement of the IPC Act. Thus, in order to ensure that the new charges in the IPC Act commence, it is necessary to make such a Proclamation, rather than wait for the default commencement date of 20 July 2005. The remaining amendments in the Act have also been proclaimed to commence on 19 July 2005.

 

No consultation was undertaken in relation to the Proclamation as it is of a minor or machinery nature and does not substantially alter existing arrangements.

 

0503231A

 

 

Overview

The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 was enacted to modernise and streamline customs processes, aiming to enhance efficiency in international trade. The Act was passed by the Australian Parliament and received Royal Assent on 20 July 2001. It was designed to address the need for updating and simplifying customs regulations in the context of global trade practices. One of the key objectives of the Act is to facilitate the transition to electronic communication between the Australian Customs Service and importers, thereby improving the accuracy and speed of customs clearances. The Proclamation issued under the Act fixes the commencement date of several provisions to ensure that businesses have adequate time to adapt to the new systems and requirements, particularly the new Integrated Cargo System. The remaining provisions, which include extending duty recovery periods, imposing new reporting obligations on stevedores, and introducing new charges for import processing, were also scheduled to commence on 19 July 2005, in coordination with the commencement of the Import Processing Charges Act 2001.

Scope and Application

The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001, as proclaimed, applies to the Customs Act 1901, extending and amending its provisions to modernise and streamline the customs process in Australia. The Act primarily applies to individuals and entities involved in the importation of goods, including importers, Customs officers, and stevedores, as well as to the Australian Customs Service itself. Its jurisdictional reach is national, given that customs regulations are a Commonwealth matter. The Act introduces electronic communication requirements for interactions with Customs and modifies the procedures for duty recovery and cargo reporting. Certain provisions of the Act are set to commence on specific dates determined by Proclamation, with the remainder of the provisions starting on 19 July 2005. The Act also includes mechanisms for its provisions to commence progressively to allow adequate time for stakeholders to adjust to new systems and requirements. The Act does not explicitly state exclusions or exemptions, but its application is governed by the detailed commencement provisions outlined in the Proclamation.

Key Provisions

The Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 makes various amendments to the Customs Act 1901, with provisions detailed in Schedules 1 to 3. Specifically, subsections 2(2), (3), and (4) and paragraphs 2(5)(a), (b), and (c) provide that certain parts of the Act commence on a date fixed by Proclamation. The Proclamation issued fixes 19 July 2005 as the commencement date for many of these provisions, including Part 4 of Schedule 1, item 15 of Schedule 1, item 3 of Schedule 2, and several items in Schedule 3. Any remaining items that do not commence within four years of Royal Assent will start on the first day after this period. The Act introduces several new requirements and obligations for parties involved in international trade and customs. For instance, it mandates the use of the Integrated Cargo System (ICS) for electronic communication with the Australian Customs Service regarding the importation of goods and the arrival of ships and aircraft. This requirement replaces previous computer systems. Additionally, the Act extends the time Customs has to recover short-levied or erroneously refunded duty. It also introduces new obligations for importers and stevedores, such as the requirement for stevedores to provide an electronic outturn report to Customs identifying cargo unloaded from a ship. Furthermore, the Act imposes specific obligations on entities such as importers and stevedores. Importers who have entered into a contract with the Chief Executive Officer of Customs are now required to provide limited information at the time of importing goods, with a reconciliation to be conducted in the following month. Stevedores must provide an electronic outturn report to Customs, detailing the cargo unloaded from a ship at a port. These obligations are intended to enhance the efficiency and accuracy of customs operations. There are no explicit offences, penalties, or consequences detailed within the Proclamation itself. However, the Act generally provides for penalties where breaches of customs regulations occur. For instance, the Customs Act 1901 includes provisions for fines and imprisonment for offences such as smuggling, making false statements, or failing to comply with customs regulations. The specific penalties would depend on the nature and severity of the breach, as outlined in the Customs Act. The commencement of the remaining amendments is also linked to the Import Processing Charges Act 2001, which imposes new charges for import processing, necessitating a Proclamation to ensure these charges come into effect.

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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.