EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS REGULATIONS (AMENDMENT)
STATUTORY RULES 1988 NO. 111
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
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 determine an appropriate fee structure.
The cost recovery formula devised 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 regulations, which are to come into operation on 1 July 1988 (the commencement of the licensing period), contain the 1988-89 warehouse licensing fees, determined in accordance with the established formula.
Details of the regulations are as follows:
Regulation 1: provides for the regulations to come into operation on 1 July 1988.
Regulation 2: • increases the prescribed fee for new warehouse licences from $6,614 to $7,128 (paragraph (a))
• increases the prescribed fee for the renewal of a warehouse licence from $5,122 to $5,551 (paragraph (b))
• increases 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 $388 to $411;
- the authorization of the handling of the property of the licensee or associates of the licensee and no other - from $273 to $289;
- the authorization of the handling of property that is not the property of the licensee or associate - from $241 to $255;
- the handling of potable spirits - from $357 to $378;
- warehouses where certain manufacturing is carried out - from $184 to $195;
- duty free shops - from $341 to $361;
- 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 $388 to $411;
increases the deductions which may be made from fees payable under subregulations 50(2) and 50(2B) (paragraphs (1) to (1)):
- where computer accounting systems are used that provide real time status reporting, from $115 to $122;
- where monthly status reporting systems are used, from $283 to $300;
- 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 $398 to $422.
Overview
The Customs Regulations (Amendment) Statutory Rules 1988 No. 111, enacted to amend the Customs Regulations under the Customs Act 1901, address the need to review and adjust warehouse licence fees to ensure they reflect the administrative costs of controlling licensed warehouses across Australia. These amendments were introduced following a recommendation by the Auditor-General that the warehouse licence fees should be reviewed with the intent to recover administrative costs. The policy objective, as stated in the explanatory statement, is to implement a formula devised by Price Waterhouse and Associates Pty Ltd to determine appropriate fees, which includes various loadings and deductions based on the administrative costs of different activities. The regulations specify the new fees for various types of warehouse licences and activities, effective from 1 July 1988.
The enactment of these regulations by the Minister of State for Science, Customs and Small Business, reflects a commitment to a cost recovery approach for managing licensed warehouses under the Customs Act 1901, ensuring the fees are calculated annually based on the recommended formula for fee adjustment. This amendment aims to align the fees with the actual administrative costs, thereby maintaining the financial sustainability of the warehouse control system.
Scope and Application
The Customs Regulations (Amendment) Statutory Rules 1988 No. 111, issued by the authority of the Minister of State for Science, Customs and Small Business, pertain to the administration and fee structure of warehouse licences under the Customs Act 1901. These regulations apply across Australia, impacting all licensed warehouses and the relevant industries involved in the handling of goods within these facilities. The amendment adjusts the fees for both new and renewed warehouse licences and further specifies fees for various activities conducted within these warehouses, including the handling of different types of goods and the use of specific accounting systems. These regulations came into effect on 1 July 1988 and are subject to an annual review to ensure the fees accurately reflect the administrative costs. The amendments set out detailed fee adjustments based on a formula recommended by Price Waterhouse and Associates Pty Ltd, ensuring a cost recovery mechanism aligned with the administrative expenses incurred by the government.
The scope of these regulations includes increasing the prescribed fees for new and renewed warehouse licences, as well as for specific activities such as the handling of bulk liquids, potable spirits, and duty-free shops, among others. It also includes adjustments to the deductions available for certain accounting systems. The amendments do not specify any exclusions or exemptions but are subject to the overarching provisions of the Customs Act 1901. The application of these regulations can be extended or modified through subordinate instruments as required, ensuring the fee structure remains relevant and effective in covering the administrative costs.
Key Provisions
The Customs Regulations (Amendment) Statutory Rules 1988 No. 111 introduce new warehouse licensing fees, which are set to come into effect on 1 July 1988. Regulation 1 specifies the commencement date of the regulations. Regulation 2 details the new fees, which are increased across various categories of warehouse activities. For instance, the fee for a new warehouse licence rises from $6,614 to $7,128, while the fee for licence renewal increases from $5,122 to $5,551 (Reg. 2(a) and (b)). Additionally, fees for specific activities, such as the handling of bulk liquids other than potable spirits and the handling of property not belonging to the licensee, are adjusted accordingly (Reg. 2(c) to (i)).
These amendments impose new financial obligations on entities seeking or renewing warehouse licences under the Customs Act 1901. Entities must now pay the increased fees as specified in the amended regulations. This includes paying higher fees for new licences, renewals, and specific activities within the warehouse. The increased fees are designed to reflect the administrative costs associated with controlling licensed warehouses and are calculated based on a formula devised by Price Waterhouse and Associates Pty Ltd.
Breach of these regulations could lead to legal consequences, although the specific offences, penalties, or consequences are not detailed in the provided excerpt. Typically, failure to comply with licensing fees and regulations could result in fines or other penalties as prescribed by the Customs Act 1901. The maximum penalties would depend on the severity of the breach and any relevant provisions within the Act. Compliance with the new fee structure is crucial to avoid any potential enforcement actions by the relevant authorities.