EXPLANATORY STATEMENT
Issued by the Authority of the Minister of State for Industry, Technology and Commerce
Subject: Customs Act 1901
Customs Regulations (Amendment) 1987 No. 140
The Auditor-General in his Efficiency Audit Report No 4 of 11 March 1982 on the Collection of Excise Duties and Deferred Customs duties concluded that warehouse licence fees should be reviewed with a view to returning the administrative costs of controlling licenced warehouses throughout Australia.
As a result of the Auditor-General’s conclusions, the Department of Industry, Technology and Commerce engaged a firm of consultants, Price Waterhouse and Associates Pty Ltd (Price Waterhouse), to advise on the appropriate fee structure.
Price Waterhouse recommended a formula to determine fees based on an extensive survey of the actual costs incurred in the administration of licensed warehouses as at 1 December 1984. The formula 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 the basis of the Consultant’s recommendations 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 contain the 1987-88 Warehouse licensing fees, determined in accordance with Consultant’s formula.
Regulation 52 has also been amended.
Regulation 52 prescribes the variable transaction component of the warehouse licence fee payable in respect of the movement of dutiable goods out of a licensed warehouse.
When this fee was originally charged in November 1977, dutiable goods were entered on manual entry forms which provided seven lines on each page on which to record information. It was intended that the $7.00 fee was to apply to each seven lines (or part thereof) of information recorded on the entry.
However, with the advent of computerised entries in November 1986, licensed Customs’ agent are able to electronically transmit entries of up to 999 lines in length. As it is still intended to levy a charge on licensed customs’ agents at a rate of $7.00 for each seven lines of information recorded on the
entry, paragraph 52(1)(b) of the Customs Regulations has been amended so as to put beyond doubt that from 1 July 1987 a licensee is to be charged a rate of $7.00 for each seven lines (or part thereof) of information contained in an entry for dutiable goods. This in fact will mirror only what has been occurring in relation to this fee since November 1986.
These regulations come into operation on 1 July 1987 (the Commencement of the licencing period) and are explained in further detail in the attachment.
ATTACHMENT
DETAILS OF THE REGULATIONS
Regulation 1: Provides for the regulations to come into operation on 1 July 1987.
Regulation 2: • reduces the prescribed fee for new warehouse licences from $6,618 to $6,614, paragraph a)
• reduces the prescribed fee for the renewal of a warehouse licence fee from $5,196 to $5,122, (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 j):
- handling of bulk liquids other than potable spirits - from $370 to $388,
- the authorisation of the handling of the property of the licensee or associates of the licensee and no other - from $260 to $273,
- the authorisation of the handling of property that is not the property of the licensee or associate - from $230 to $241,
- the handling of potable spirits - from $340 to $357,
- warehouses where certain manufacturing is carried out - from $175 to $184,
- Duty free shops - from $325 and $341,
- 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 $370 to $388
• increases the deductions which may be made from fees payable under subregulations 50(2) and 50(2B) (paragraphs k to m)
- where computer accounting systems are used that provide real time status reporting, from $110 to $115,
- where monthly status reporting systems are used, from $270 to $283,
- 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 $350 to $398.
Regulation 3: Amends paragraph 52(1)(b) of the Customs Regulations by fixing a prescribed fee of $7 for each 7 lines (or part thereof) of information contained in an entry form that is processed by Customs and is raised for the purpose of recording the movement of dutiable goods out of a warehouse