EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS REGULATIONS (AMENDMENT)
STATUTORY RULES 1989 NO. 161
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
Section 270 of the Customs Act 1901 (the Act) provides in part that “(1) The Governor-General may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to this Act ...”
Section 85 of the Act provides in part that “(1) Such fees as are prescribed are payable in respect of warehouse licences.”
Following the Government’s acceptance of a recommendation of the Auditor-General that warehouse licence fees should be reviewed with a view to returning the administrative costs of controlling licensed warehouses under the Customs Act 1901 throughout Australia, a formula was devised by Price Waterhouse and Associates Pty Ltd (consultants engaged for this purpose) to advise on an appropriate fee structure.
The cost recovery formula recommended involves a detailed matrix of costs and includes loadings and deductions for certain activities based on the administrative costs of those activities.
Fees were first levied on this basis in 1985-86 following amendments to the Customs Regulations. The fees are subject to an annual review and are calculated on the basis of a formula recommended by the Consultant for a yearly fee adjustment.
The warehouse licensing fees have now been reviewed for 1989-90, having regard to the established formula, and the Regulations, which are to come into operation on 1 July 1989 (the commencement of the licensing period), contain the new warehouse licensing fees.
In addition, the fee prescribed in regulation 52 for transactions involving the movement of goods out of warehouses is increased from $7 to $8.80. The most recent increase in this fee occurred in 1983 (from $5 to $7) and an increase is now justified on a cost recovery basis.
Details of the Regulations are as follows:
Regulation 1: provides for the regulations to come into operation on 1 July 1989, the date of the commencement of the licensing period.
Regulation 2: amends regulation 50 of the Customs Regulations, by
• increasing the prescribed fee for new warehouse licences from $7,128 to $7,591 (paragraph (a))
• increasing the prescribed fee for the renewal of a warehouse licence from $5,551 to $5,919 (paragraph (b))
• increasing for the purposes of subregulations 50(2) and 50(2B) the amounts to be payable in respect of licences, where the licence relates to (paragraphs (c) to (i)):
- handling of bulk liquids other than potable spirits - from $411 to $427;
- the authorization of the handling of the property of the licensee or associates of the licensee and no other - from $289 to $301;
- the authorization of the handling of property that is not the property of the licensee or associate - from $255 to $265;
- the handling of potable spirits - from $378 to $393;
- warehouses where certain manufacturing is carried out - from $195 to $203;
- duty free shops - from $361 to $375;
- approved places for the purposes of the Excise Act 1901 or where a warehouse is subject to an application under section 5A of that Act - from $411 to $427;
- increasing the deductions which may be made from fees payable under subregulations 50(2) and 50(2B) (paragraphs (j) to (1)):
- where computer accounting systems are used that provide real time status reporting, from $122 to $128;
- where monthly status reporting systems are used, from $300 to $312;
- where the system of recording and accounting used in relation to the warehouse includes the use of a computer having both real time status reporting and monthly status reporting capacity, the level of the deduction is increased from $422 to $440.
Regulation 3: amends regulation 52 of the Customs Regulations by increasing the fees charged in paragraphs 52(1)(a) and 52(1)(b) from $7 to $8.80. In addition, the amendment to paragraph
52(1)(b) makes it clear that the fee applies to each 7 lines or part thereof in the document. So, the fee payable for 1 line to 7 lines is $8.80 and the fee payable for 8 lines is two times $8.80.
The fee prescribed in regulation 52 has remained static since 1 January 1983 (Statutory Rules 1982 No. 404 refer) when it was increased from $5.00 to the present $7.00. In 1984 Price Waterhouse and Associates Pty Ltd examined the fee but did not recommend any increase at that time.
The Australian Customs Service has now re-examined the matter given the substantial rises in the cost of living that have occurred since 1984, and on the basis of national wage increases totalling 26.6% over the last three financial years and the projected amount for next financial year (1986-87 8.6% rise, 1987-88 5% rise, 1988-89 6% rise and 1989-90 7% rise) the sum of $1.82, which was rounded to $1.80, was found to be the correct amount to add to the current $7 fee.