Customs Regulations (Amendment)

Administered by Attorney-General's Department

Legislation au F1996B04065 Regulations Not in force Legislative Instrument

Legislation content

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.

Overview

The Customs Regulations (Amendment) Statutory Rules 1989 No. 161 were enacted to revise the fees associated with warehouse licences and transactions involving the movement of goods out of warehouses, in line with the Customs Act 1901. This amendment was necessitated by the Government’s acceptance of an Auditor-General recommendation to review warehouse licence fees with the objective of ensuring the administrative costs of controlling licensed warehouses under the Customs Act 1901 were adequately covered. The amendment, issued by the authority of the Minister of State for Science, Customs and Small Business, implemented a cost recovery formula recommended by Price Waterhouse and Associates Pty Ltd, which included a detailed matrix of costs and adjustments for various activities. This formula was first applied in 1985-86 and has been subject to annual review, with the latest review leading to the updated fees effective from 1 July 1989. This adjustment aimed to ensure that the fees align with the rising administrative costs, particularly in light of the significant increases in the cost of living and national wage rises over the preceding years.

Scope and Application

The Customs Regulations (Amendment) Statutory Rules 1989 No. 161, issued under the authority of the Minister of State for Science, Customs and Small Business, pertain to amendments concerning warehouse licensing fees and fees for transactions involving the movement of goods out of warehouses, as prescribed under the Customs Act 1901. These regulations apply to all entities and individuals requiring a warehouse licence under the Customs Act and those involved in transactions where goods are moved out of warehouses. The amendment to these fees was recommended following a review by Price Waterhouse and Associates Pty Ltd, which devised a cost recovery formula to ensure the administrative costs of controlling licensed warehouses are recovered. The new fees, which come into effect on 1 July 1989, reflect adjustments based on the established cost recovery formula and the significant increases in living costs and national wage rises over recent years. The fees for warehouse licences and transactions have been adjusted accordingly, with the fee for the movement of goods out of warehouses increasing from $7 to $8.80. These regulations are applicable throughout Australia and are subject to annual review for further adjustments.

Key Provisions

The Customs Regulations (Amendment) Statutory Rules 1989 No. 161, issued under the authority of the Minister of State for Science, Customs and Small Business, amend the Customs Regulations to update the fees associated with warehouse licences and transactions involving the movement of goods out of warehouses. Regulation 1 sets the commencement date of these amendments as 1 July 1989, marking the beginning of the new licensing period. Regulation 2 revises the fees for new and renewed warehouse licences, as well as additional fees for specific activities within the scope of the licence. The new fees for new warehouse licences are set at $7,591, and for renewed licences at $5,919. Furthermore, fees for various activities such as handling bulk liquids, potable spirits, and duty-free shops have been adjusted. Regulation 3 updates the fee for transactions involving the movement of goods out of warehouses from $7 to $8.80. This increase is based on a comprehensive formula devised by Price Waterhouse and Associates Pty Ltd, reflecting the rising administrative costs and national wage increases over the past few years. The amended regulations impose obligations on warehouse licence holders to pay the new fees as stipulated in Regulation 2. This includes the fee for new warehouse licences, renewal fees, and additional fees for specific activities. Licence holders must ensure compliance with these financial obligations to maintain their operational status. Additionally, Regulation 3 requires those involved in transactions where goods are moved out of warehouses to pay the updated fee of $8.80. These regulations ensure that the administrative costs of controlling licensed warehouses under the Customs Act 1901 are adequately covered. Breach of the obligations outlined in these regulations may result in penalties or other consequences. While the specific penalties for non-compliance are not detailed in the provided text, under the Customs Act 1901, non-payment of prescribed fees or failure to comply with regulations could lead to fines or other enforcement actions. The seriousness of the breach and the specific provisions of the Customs Act would determine the exact nature and severity of the penalties.

Legal classification tags

Area of Law
Customs Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Fees
Administrative Discretion

Interactions

Authorises

All Versions

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.