Customs Regulations (Amendment)

Overview

The Customs (Warehouse Licences) Fees (Fees - New) Regulations 1985 were introduced to address the need for a more accurate and cost-reflective fee structure for warehouse licences, as identified in the Auditor-General's Efficiency Audit Report No 4 of 1982. This report highlighted inefficiencies in the administration of the approximately 1100 licensed warehouses across Australia and recommended a review of the associated fees. In response, the Department of Industry, Technology and Commerce commissioned Price Waterhouse Associates Proprietary to develop a new fee calculation formula. This formula, based on an extensive survey of the actual administrative costs, resulted in significantly increased base fees for new and renewal warehouse licences. The regulations amend the Customs Regulations 50 and 52 to implement this new fee structure and to maintain the facility for paying these fees in installments. These regulations were enacted under the authority of the Minister of State for Industry, Technology and Commerce and came into operation on 1 July 1985.

Scope and Application

The Statutory Rules 1985 No. 71, issued under the authority of the Minister of State for Industry, Technology and Commerce, concern the amendment of fees payable for warehouse licences under the Customs Act 1901. These regulations apply to all entities and individuals holding or seeking a warehouse licence in Australia. This includes businesses involved in the storage of goods that are subject to customs duties, thus impacting industries such as logistics, manufacturing, and retail where imported goods are held in warehouses pending clearance. The regulations implement a revised fee structure based on a formula recommended by Price Waterhouse, which aims to reflect the actual administrative costs associated with managing approximately 1,100 licensed warehouses across the nation. The new fees, which come into effect on 1 July 1985, are intended to better align with the costs incurred in the administration of these warehouses, ensuring the revenue collected covers the administrative expenses. These regulations do not specify any exclusions or exemptions, but they do allow for adjustments through subordinate instruments to accommodate changes in cost structures or administrative practices in the future.

Key Provisions

The key operative sections of these regulations (Sections 50 and 52 of the Customs Act 1901) are amended to implement a new fee structure for warehouse licences. Section 50 establishes the new base fee for a new licence at $6646, while Section 52 sets the base fee for a licence renewal at $5346. These sections also detail the formula and matrix used to determine the fees, which takes into account the actual costs incurred in the administration of licensed warehouses, including loadings and deductions for specific activities. The Act imposes several obligations on parties and entities it governs. Firstly, warehouse operators who hold or seek a licence must comply with the new fee structure outlined in Sections 50 and 52. They are required to pay the revised base fees for new and renewal licences, which are calculated using the formula provided. Additionally, the Act mandates that these fees can be paid in installments, providing flexibility for operators in managing their financial obligations. In terms of breaches and consequences, the regulations do not explicitly detail specific offences or penalties. However, failure to comply with the fee structure and payment obligations could lead to enforcement actions under the Customs Act 1901. Potential civil or criminal consequences may include fines, penalties, or other administrative sanctions as prescribed by the Act. The exact penalties would depend on the nature and severity of the breach, but they can include financial penalties as determined by the relevant authorities.