Import Processing Charges Amendment Act 2015

Overview

The Import Processing Charges Amendment Act 2015, enacted by the Parliament of Australia and assented to on 12 November 2015, was introduced to amend the Import Processing Charges Act 2001. The Act aims to update the fees associated with the processing of import declarations and warehouse declarations by the Department of Agriculture and Water Resources. It establishes different charges based on the value of the goods and whether the declaration is submitted electronically or in documentary form, effective from 1 January 2016. The policy objective underpinning the amendments is to ensure that import processing charges accurately reflect the costs associated with handling various types of import declarations and warehouse declarations, thereby maintaining efficient and effective customs processing.

Scope and Application

The Import Processing Charges Amendment Act 2015 amends the Import Processing Charges Act 2001. The Act applies to import declarations and warehouse declarations communicated to the Department on or after 1 January 2016. The amended Act revises the amounts of import processing charges for electronic and documentary declarations based on the value of the goods being imported. Specifically, it sets out different charge amounts depending on whether the value of the goods is at least $10,000 or less, with the maximum prescribed amounts being $228.00 for electronic declarations and $288.00 for documentary declarations. The Act does not specify any exclusions or exemptions, and its provisions extend to all import and warehouse declarations communicated after the specified date. The Act's amendments are to be applied through subordinate instruments, as outlined in the Schedule of the Act.

Key Provisions

The Import Processing Charges Amendment Act 2015 (Act) amends the Import Processing Charges Act 2001 (IPC Act) by revising the fees for import processing charges. Section 5 of the IPC Act is repealed and replaced by a new provision that specifies the amounts of import processing charges. These charges vary depending on the type of declaration (electronic or documentary) and the value of the goods being imported. For electronic import declarations with goods valued at least $10,000, the charge is set at $152.00, or another amount not exceeding $228.00 as prescribed. For lower value goods, the charge is $50.00, or another amount not exceeding $75.00 as prescribed. For documentary import declarations, the charge for goods valued at least $10,000 is $192.00, or another amount not exceeding $288.00 as prescribed. For lower value goods, the charge is $90.00, or another amount not exceeding $135.00 as prescribed. These new fees apply to import and warehouse declarations communicated to the Department on or after 1 January 2016. Under the amended IPC Act, both importers and the Australian Border Force have distinct obligations. Importers must ensure they are aware of and pay the correct import processing charge based on the type of declaration and the value of the goods. This involves checking whether their declaration is electronic or documentary and the value of the imported goods to determine the applicable charge. The Australian Border Force is responsible for enforcing these charges and ensuring that importers comply with the new fee structure. This includes updating their systems to calculate and collect the revised charges from importers. Failure to comply with the amended IPC Act can result in various civil and criminal consequences. Civilly, importers who do not pay the correct import processing charge may be liable for any unpaid charges, plus interest and administrative costs. Criminally, individuals who intentionally evade payment of the import processing charges can face penalties. The maximum penalty for a first offence is 50 penalty units, or for a corporation, 250 penalty units. For subsequent offences, the maximum penalty is double the amount for the first offence. These penalties underscore the importance of compliance with the new fee structure established by the Import Processing Charges Amendment Act 2015.