EXPLANATORY STATEMENT
Statutory Rules 1986 No 91
Customs Regulations (Amendment)
Issued by the Authority of the Minister of State for Industry Technology and Commerce
Section 85 of the Customs Act 1901 provides for fees as prescribed to be payable in respect of warehouse licences.
As a result of the Auditor General’s Efficiency Report No 4 of 11 March 1982, it was determined that warehouse licence fees should be reviewed with a view to returning the administrative costs of controlling licensed warehouses under the Customs Act 1901. The Department of Industry, Technology and Commerce subsequently engaged a firm of consultants, Price Waterhouse Associates Pty Ltd, who recommended a formula to determine licence fees, based on a survey of actual costs incurred in the administration of licensed warehouses. The new fees were first levied on the basis of the consultant’s recommendations in 1985/86, following amendments to the Custom’s Regulations by Statutory Rules 1985 No 71, and are subject to annual review.
In applying the consultant’s formula to the 1986/87 licence period there is to be a reduction in the base fee for new, (from $6646 to $6618) and renewed licences (from $5346 to $5196); an increase in permissable deductions from licence fees for compensation of accounts, and marginal increases in fees made to certain specific classes of licences. This will result in an overall reduction of the fee payable for the renewal of warehouse licence for the 1986-87 licensing year.
The reduction in fees is largely as a result of lower administrative costs due to a reduction in licenced warehouses - from 1250 in 1984, to 953 as at 31 December 1985.
The purpose of the regulation is to amend Custom Regulation 52 to provide for the 1986-87 warehouse licensing fees.
The regulations are to come into effect on 1 July 1986.
Overview
The Customs Regulations (Amendment) Statutory Rules 1986 No. 91, enacted by the Authority of the Minister of State for Industry, Technology and Commerce, address the need to review and adjust warehouse licence fees under the Customs Act 1901. This adjustment follows recommendations from the Auditor General’s Efficiency Report No. 4 of 1982, which prompted a review of the administrative costs associated with controlling licensed warehouses. The Department of Industry, Technology and Commerce commissioned Price Waterhouse Associates Pty Ltd to devise a formula for determining licence fees, based on a comprehensive survey of actual administrative costs. The resulting changes, initially implemented in 1985/86, included a reduction in base fees for new and renewed licences, alongside adjustments to permissible deductions and specific licence classes, reflecting the lowered administrative costs due to a decrease in the number of licensed warehouses. The policy objective of these amendments is to ensure that the fees reflect the current administrative costs while maintaining the necessary oversight of licensed warehouses. The regulations are set to take effect on 1 July 1986.
Scope and Application
The Customs Regulations (Amendment) Statutory Rules 1986 No 91, issued under Section 85 of the Customs Act 1901, apply to warehouse licences granted under the Customs Act. These regulations, which were prompted by the Auditor General’s Efficiency Report No 4 of 1982, aim to adjust the fees associated with these licences based on a formula developed by Price Waterhouse Associates Pty Ltd. This formula was created following a survey of the actual costs involved in administering licensed warehouses, and it results in a reduction of base fees for both new and renewed licences for the 1986-87 licence period. The amendments also incorporate increased permissible deductions for compensation of accounts and marginal fee increases for certain specific classes of licences. These changes reflect the lower administrative costs due to a reduction in the number of licensed warehouses, which decreased from 1250 in 1984 to 953 as of December 31, 1985. The new fees are subject to annual review and took effect on 1 July 1986.
Key Provisions
The Statutory Rules 1986 No 91, issued under the Customs Act 1901, outline amendments to the Customs Regulations, specifically focusing on the fees associated with warehouse licences (section 85). The key provisions of these regulations involve the adjustment of the base fees for new and renewed warehouse licences, the increase in allowable deductions for compensation of accounts, and specific marginal increases in fees for certain classes of licences. These changes are predicated on a formula developed by Price Waterhouse Associates Pty Ltd, based on a comprehensive survey of the actual costs associated with administering licensed warehouses. The primary objective of these amendments is to align the fees with the current administrative costs, reflecting the reduced number of licensed warehouses from 1250 in 1984 to 953 as of 31 December 1985.
The regulations impose specific obligations on the entities and parties involved. They require the application of the revised fee structure starting from 1 July 1986, as per the new fee schedule provided in Custom Regulation 52. This includes the reduced base fees for new licences, which drop from $6646 to $6618, and for renewed licences, which decrease from $5346 to $5196. Additionally, the regulations mandate the allowance of increased permissible deductions for compensation of accounts. Certain licence classes will also see marginal fee increases. These amendments ensure that the fee structure remains reflective of current administrative costs and operational efficiencies.
Failure to comply with the provisions of these regulations may result in legal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of regulations under the Customs Act 1901 can typically lead to civil and criminal penalties. Civil penalties can include fines up to $22,000 for individuals and substantially higher amounts for corporations, as well as potential enforcement actions. Criminal penalties can include imprisonment, with the specific terms depending on the nature and severity of the breach. It is imperative that all relevant parties adhere to these new fee structures and comply with the amended regulations to avoid these potential repercussions.