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1998 -
99
THE PARLIAMENT OF THE COMMONWEALTH
OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Justice and
Customs,
Senator the Hon Amanda
Vanstone)
ISBN: 0642 405417
The purpose of this Bill is to amend the Customs Act
1901 (the Act) in three particular areas, as
follows:
. Schedule 1 of the Bill
proposes amendments to the Act to introduce a legislative option for an
electronic lodgement and payments system for refunds of Customs duty. In
particular, the amendments amplify the existing refund, rebate and remission
section of the Act to provide sufficiently broad heads of power so that the
desired electronic lodgement and payments system for refunds of Customs duty may
be prescribed in the Customs
Regulations;
. Schedule 2 of the Bill
proposes amendments to the Act which will clarify the time when the payment of
Customs duty is required, as well as providing a mechanism for the deferral of
payment of Customs duty by enabling Regulations to prescribe later times;
and
. Schedule 3 of the Bill proposes
amendments to the Customs Brokers Licensing System which is contained in the
Act. In particular, the amendments propose to:
- extend the length of customs agents and
corporate customs agents licences from 1 year to 3
years;
- change the time when licences have to be
renewed from 31 December to 30 June; and
- replace
the word “agent” with “broker” in the numerous
references in which that word appears throughout the Act.
. Electronic lodgement and payments system for refunds
of Customs
duty
1. Background
Electronic
lodgement of import entries was introduced in 1991 as part of a move towards a
total electronic import clearance environment. This was made possible with an
enhancement of the Customs (COMPILE) computer system. It represented an
electronic option for the communication to Customs of information relating to
imported or excisable goods intended for home consumption, to complement the
existing documentary or manual entry
facilities.
The Electronic Lodgement of Refunds
(ELOR) is a further enhancement of the COMPILE system which will overcome the
requirement to physically lodge refund applications for the majority of
applicants.
A refund involves a return to
the owner of some or all of the Customs duty paid on the imported goods at the
time of their importation. For financial year 1997-98 $200 million of Customs
duty and $6 million of Sales tax was refunded, and $10.6 million of Customs duty
and $1.8 million of Sales Tax was
rejected.
When COMPILE was enhanced in 1991,
Customs decided not to include the electronic option of refunding Customs duty
until further examination and necessary computer enhancements had taken place.
That has now occurred and to continue the move towards paperless procedures
Customs is automating the refund system. The ELOR system will facilitate the
processing of refund applications by reducing the time taken to process them and
speed up the payment of refunds due. Currently there are two thousand three
hundred Customs Brokers and Importers who have access to the COMPILE system. It
is envisaged that these brokers will use ELOR to process their refund
applications, not only because of the convenience the system will provide, but
also as a result of funding provided for the project by an Industry based fund,
the Cargo Automation Development Fund (CADF).
CADF was established with a view to enhancing
and developing relevant Customs and other related integrated electronic systems
to benefit both industry and Customs, particularly in the area of trade
facilitation.
As with the other electronic
reporting systems, ELOR will provide an electronic option only; the current
documentary and manual lodgement system will still be available for private
individuals who are not linked to the COMPILE system.
Through the implementation of the
electronic lodgement and payment option for refunds, the importer will receive a
faster refund payment with less manual effort.
As a result, there will not be any requirement
for Industry to purchase new software as they are already registered users of
the COMPILE system. Using a green-line/red-line system to process refund
applications, the majority of refunds are expected to be processed and paid
without documentation being submitted to the Customs. However, where refund
applications meet profiles, they will be processed red-line and documentation
will be required to be submitted to the Customs. Either way, a refund applicant
will be required to maintain all commercial documentation relating to the five
year period currently prescribed in the Customs Act, to enable Customs to verify
particulars of the claim in its post transaction commercial
audits.
2. Problem or issue
identification
The current procedures for
applying for a refund of Customs duty and sales tax are based on manual
processes. Refund applicants (who are also COMPILE users), are required to
create a refund application on the COMPILE system, print the application, then
physically lodge the application and supporting documentation with their nearest
Customs office for processing. This process is cumbersome and time-consuming,
particularly requiring staff to physically attend a Customs Office.
Furthermore, even if their application is “green-lined”, (ie. no
further documentation required), it could be as long as 30 days (in larger
regions), before Customs staff are able to process this
request.
Upon lodgement of a refund
application, Customs is required to manually check and process all applications
(there were approximately 60,000 applications lodged over the last 2 years),
using risk management techniques. After the processing of the refunds and
decisions on whether or not payment is due, an application is either rejected
(an appropriate message is transmitted to the applicant), or accepted whereby
the refund is paid into the nominated account. The current manual process is
clearly resource intensive for Customs staff, as well as somewhat slower than
the proposed electronic
version.
3. Policy
objectives
The proposed objectives
are:
a) the implementation of an
electronic system for the processing and payment of refund applications using
the facilities of the current COMPILE
system;
b) to incorporate risk management
procedures in the processing of refunds;
c) to
provide an appropriate legislative framework for an electronic processing regime
to operate with respect to
refunds.
4. Options
1) The
introduction of ELOR proposes to overcome the requirement for physical delivery
of documents and will enable the introduction of self assessment principally as
well as facilitate the processing of refund applications by reducing processing
time and speeding up the payment of refunds
due.
2) No specific
action.
For no action to be taken with regard
to the ELOR facility, the manual process would need to continue as described
earlier.
Impact group
Identification
• Industry
(Customs brokers,
importers)
• Government agencies
Assessment of costs and
benefits
Benefits to
Industry
The current procedures for
providing Customs Duty and Sales Tax refunds are based on manual processes. By
providing an electronic refund processing regime the following benefits will be
achieved:
• a
full electronic lodgement of refunds will be possible in a familiar systems
environment;
• more
efficiencies for industry in the preparation and lodgement of refund
applications;
• instantaneous
status of refund
applications;
• 90%
of applications will not require any physical documentation to be
lodged;
• an
improvement in turnaround of processing
time;
• a reduction in the time taken to
process refunds and consequently instantaneous payment to the majority of
applicants.
Costs to
Industry
There are no further perceived
costs to Industry, as the establishment cost of the new system has already been
funded through the Cargo Automation Development Fund (CADF), an industry
fund.
The further system enhancement cost of
$276,000 includes the design development and implementation of system
requirements, industry consultation, a pilot program, testing, training, the
preparation of a manual, and provision for a post-implementation review. It is
not envisaged that there will be any compliance costs for industry with the ELOR
proposal.
Benefits
to Government
The current refunds
system is based on a manual processing system. The introduction of an electronic
lodgement option will introduce a more efficient system of processing and paying
refund applications by Customs, by eliminating time spent on manual processing
and thereby better utilising staffing resources and ultimately leading to
greater client satisfaction.
The
streamlining of the refunds process through the use of electronic lodgement will
reduce the paper burden and also increase the transparency of the process by
providing instantaneous information on the status of refund applications. The
development of the new system is in line with the self-assessment environment in
which Customs compliance management now operates.
Cost to
Government
The ELOR system will not
require additional funding by Customs as all costs associated with its
development and implementation have been included
in
funding provided by the Cargo Automation
Development Fund.
6.
Consultation
7. Conclusion and Recommended
Option
ELOR will facilitate the processing
of applications for refunds by reducing the time taken to process them and
accelerating payments. In addition, the streamlining of applications through
the use of electronic lodgement will reduce the paper burden as well as the
staffing resources required to process the application.
The ELOR system has been developed as a
further enhancement of the current COMPILE system.
ELOR will have a positive effect on Customs staff
as it will reduce the bulk of manual profiling/checking that is required.
Similarly, it is envisaged that overall, industry will benefit from the proposed
efficiencies of this system, ie. the majority of refunds will be processed
immediately and payment made directly by EFT into accounts nominated by the
COMPILE user.
In conclusion, it is recommended
that Option (1), which proposes to introduce an electronic facility for the
lodgement of refund applications within the existing COMPILE system, be
considered as the primary means of achieving the desired policy objectives.
8. Implementation and
review
It is proposed to introduce the full
ELOR system on or as soon as practical after the passage of the Customs
Legislation Amendment Bill (No. 2) 1999 through Parliament. However, until the
legislation is passed, it is proposed to operate a dual system where claimants
will be required to manually lodge the documents with Customs, whilst ensuring
an opportunity for familiarisation with ELOR in providing the facility. This
will ensure that the claimant will have the immediate benefit of a quicker
turnaround, as veracity checks will be performed by the ELOR system. Extensive
training will be conducted which will incorporate an explanation of the new
procedures, legislation and policy
requirements.
The ELOR system will be
subject to ongoing monitoring by Customs to ensure a high level of service
delivery to clients.
Under ELOR a registered
user will send a standard electronic message to Customs containing the
prescribed information in relation to an application for a refund on an earlier
import consignment. Customs will apply certain checks for completeness of
detail and any necessary checks for control purposes. If there are no
impediments to processing a return message will inform the user of the status of
the application.
It is considered the majority
of applications are low risk and are to be speedily processed down the
“green line” with minimum checks. The remaining applications are
considered to be high risk and are sent “red line” (which are the
result of risk management profiling) and directed to an appropriate area for
further scrutiny.
A post-implementation
review of ELOR will be undertaken twelve months after commencement of
operations.
. Schedule 1 of the Bill [Electronic lodgement
and payments system for refunds of Customs duty
(ELOR)]
The measures
proposed in this part of the Bill have no direct financial impact, as the
development cost of the ELOR system has been funded by Industry through the
Cargo Automation Development Fund
(CADF).
. Schedule 2 of the Bill
(Customs duty deferral mechanism)
The measures
proposed in this part of the Bill have no direct financial impact, as they
simply provide a legislative head of power for Regulations to prescribe times
for the payment of Customs duty which are later than the times specified in the
Act.
. Schedule 3 of the Bill (Customs
Brokers Licensing System)
The measures proposed
in this part of the Bill have no direct financial impact.
This clause provides for the Bill when enacted, to be
cited as the Customs Legislation Amendment Act (No.2 ) 1999 (Amendment
Act).
Sub-clause (1) provides that subject to
subclauses (2) to (4), the Amendment Act commences on the day on which it
receives the Royal Assent.
Sub-clause
(2) provides that both Schedule 1 (concerning the electronic lodgement and
payments system for refunds, rebates and remissions of Customs duty) and
Schedule 2 (concerning the Customs duty deferral mechanism) are to commence on
Proclamation. That is because both Schedules require Regulations to be enacted
before each initiative can effectively
commence.
Sub-clause (3) provides for
the standard statutory commencement of Schedules (1) and (2) in the event the
Proclamation of the Schedules does not occur within 6 months of this Amendment
Act receiving the Royal Assent.
Sub-clause
(4) provides for a 1 July 2000 commencement for Schedule 3 of the Amendment
Act (concerning the Customs Brokers Licensing System amendments).
This clause is the formal enabling provision for the 3
Schedules to the Amending Act, providing that each Act specified in the
Schedules is amended or repealed as set out in the applicable items of the
Schedules.
The clause also provides that the
other items of the Schedules have effect according to their terms. This is a
standard enabling clause for transitional, savings, and application items in
amending legislation. They appear in this Amending Act as items 9, 10 and 11 in
Part 2 of Schedule 1, item 6 of Schedule 2, and items 131 and132 in Part 3 of
Schedule 3.
This Schedule deals with the amendments to the
Customs Act 1901 (the Customs Act) which will enable the introduction of
an electronic communication and payments systems for refunds, rebates and
remissions of Customs duty. In particular, the amendments in Item 6 will
amplify the existing refund, rebate and remission section of the Customs Act
(section 163) to provide sufficiently broad heads of power so that the desired
electronic lodgment and payments system for refunds, rebates and remissions of
Customs duty may be prescribed in the Customs
Regulations.
Regulations were considered the
appropriate legislative mechanism for the prescription of this electronic
option, given the relative frequency of Information Technology changes and the
fact that refund, rebate and remission circumstances are already prescribed in
the Customs Regulations.
The other Items in
this Schedule effect consequential amendments to the Customs Act resulting from
this electronic initiative for refunds, rebates and
remissions.
Part 1 - Refund, rebate and
remission applications
This Item amends section 4 of the Customs Act to
expand the definition of the COMPILE computer system to expressly provide that
the Customs Regulations may prescribe that computer system for the electronic
communication of refund, rebate and remission
applications.
The present definition of the
COMPILE computer system confines the meaning of computer communications to
communications relating to the importation of goods. ELOR is the new facility
on the COMPILE computer system enabling the electronic communication and payment
of refunds, rebates and remissions. Consequently, the COMPILE computer system
will be prescribed under the expanded Regulation head of power in Item 6
as the relevant computer system for the electronic communication of such
applications.
This Item effects a technical drafting change to
subsection 71AA(3).
The Item inserts the new
Customs Act references into the subsection as a result of new subsection 71F(1A)
(Item 3 refers) and the repeal of section 71J (Item 4
refers).
This Item inserts a new subsection 71F(1A) to replace
the repealed subsection 71J of the Customs Act (Item 4
refers).
The existing subsection 71J provides
that a change to an import entry is to be taken as a withdrawal of the original
entry. The present wording of the subsection does not make it clear that
changes to import entries can only be made prior to dealing with the goods the
subject of the entry.
The purpose of the new
subsection 71F(IA) is to put beyond doubt that information on an import entry
can only be changed prior to dealing with the goods the subject of the entry and
that any such changes constitute a withdrawal of the original entry. In
addition, this new section is placed in section 71F which is the relevant
section dealing with the withdrawal of import entries.
This Item repeals the existing section 71J and
substitutes a new section.
The new section
provides that annotations on an import entry made either manually or
electronically by Customs to record the acceptance and payment of applications
for refunds, rebates and remissions does not constitute a withdrawal of
that original entry. This consequential amendment is necessary as a result of
the proposed use of the COMPILE computer system for the electronic communication
of such applications to Customs.
COMPILE is the
current Customs computer system used for all communications relating to the
importation of goods. A person who communicates an import entry by means of
COMPILE can access that entry. An application for a refund, rebate or remission
can then be created by making a computer copy of the original entry and changing
the relevant information. COMPILE then automatically calculates the amount to
be paid. The application is then printed and manually given to Customs.
Where an application is thus created, the
amount of any refund or rebate payable can be electronically credited to the
applicant's nominated account. COMPILE electronically annotates the details of
the acceptance and payment of the applications on the original import entry.
The new ELOR facility will enable such applications to be communicated
electronically. Payment will continue to be credited to the applicant's
nominated account, and annotations of the details of those payments will
continue to be made, electronically.
The
purpose of the new section 71J is to make it clear that any annotations on an
original entry in relation to refunds, rebates or remissions do not
constitute a withdrawal of that entry.
Item
5 - After subsection 163(1A)
This Item
inserts five new subsections into section 163 of the Customs Act dealing with
refunds, rebates and remissions of Customs duty. The new subsections will
provide sufficiently broad heads of power so that regulations might introduce
the necessary legislative provisions to support the ELOR
facility.
New subsection 163(1AA)
provides a head of power to enable the Regulations to prescribe the manner in
which both documentary and electronic applications for refunds, rebates and
remissions may be made and the procedures to be adopted for dealing with such
applications. The purpose of this amendment is to enable all the procedures
relating to refund applications to be prescribed. The specific reference to
prescribing procedures to deal with requests for further information has been
included to enable Customs to introduce legislative provisions to deal with
situations where an applicant does not respond to such
requests.
New subsection 163(1AB)
provides a head of power to enable the Regulations to prescribe the time at
which electronic applications for refunds, rebates or remissions of Customs duty
are taken to have been communicated to Customs, akin to the provisions in
section 71L of the Customs Act. The purpose of this amendment is to establish a
point in time when such applications are taken to have been communicated to
Customs. This is of particular importance in relation to refund applications
because those applications are subject to time limits for their communication to
Customs. The time limits are prescribed in Regulation 128A of the Customs
Regulations.
New section163(1AC)
provides a head of power to enable the Regulations to prescribe contingency
arrangements in relation to applications for refunds, rebates and remissions
when the ELOR facility of COMPILE is inoperable. The purpose of this amendment
is to enable contingency arrangements similar to those applying to COMPILE in
Division 4A of Part IV of the Customs Act to be
prescribed.
New subsection 163(1AD)
provides a head of power to enable the Regulations to prescribe the
circumstances in which an application for a refund, rebate or remission and/or
an application fee for a refund is not required. The purpose of this amendment
is to replace the existing note to subsection 163(1D) of the Customs Act and to
prescribe with greater clarity the circumstances in which an application and/or
fee is not required.
New subsection
163(1AE) has been inserted to deal with applications for refunds, rebates
and remissions which are created electronically on COMPILE but are not given to
Customs within the time limits prescribed by the relevant Customs
Regulations.
New paragraph 163(1AE)(a)
relates to a person who creates an application for a refund, rebate or remission
by taking a computer copy of the original entry he/she has made and then
changing the relevant information. New paragraph 163(1AE)(b) relates to
a person creating an application for a refund, rebate or remission as previously
described and then paying an application fee. However, in either case if the
person does not communicate that application manually or by computer within the
time prescribed for their communication to Customs, the mere creation of the
application has no effect in law.
The purpose
of this amendment is to put beyond doubt that where such applications are
created but not communicated within the prescribed time limit, or where
applications are created and the application fee is paid but the applications
are not communicated within the prescribed time limit, these applications have
no legal force or effect. Consequently, if the time for communication has
expired, the applicant can no longer claim any entitlement.
Item 6 - Subsection 163(1B)
This Item repeals the existing subsection
and substitutes a new subsection 163(1B).
The
purpose of the existing paragraph 163(1B)(a) was to prevent the communication of
refund applications in respect of more than one import entry. For example, an
applicant might aggregate a number of import entries and then communicate a
refund application for the total amount of Customs duty paid in relation to the
goods the subject of those entries. This is currently not permitted by
paragraph 163(1B)(b).
This restriction will
continue to be imposed by means of the Regulation head of power in paragraph
163(1)(b), which enables the Customs Regulations to prescribe that refunds,
rebates and remissions of duty may be made subject to such restrictions as are
prescribed.
This Item also continues the effect of
existing paragaraph 163(1B)(b) by acknowledging that a refund application fee
may not be payable in respect of all refund applications (new subsection
163(1AD), Item 6 refers).
Item 7 -
Subsection 163(1D) (Note)
This Item repeals
the note to subsection 163(1D) as that has been made superfluous by the
insertion of new subsection 163(1AD) (Item 6
refers).
Item 8 - After subsection
234(2B)
This item makes a consequential
amendment to Section 234 of the Customs Act to cater for the new ELOR facility
on COMPILE. Section 234 deals with offences against the Customs Act.
The purpose of this amendment is to ensure
that when an electronic application for a refund, rebate or remission is taken
to have been communicated to Customs, it is to be treated as a statement made to
the Chief Executive Officer of Customs for the purpose of the offence in
paragraph 234(1)(d). That paragraph deals with the offence of knowingly or
recklessly making false and misleading statements.
Part 2 - Transitional, saving and
application provisions
Item 9 -
Import entries taken to have been withdrawn under section 71J of the Customs
Act
This Item inserts a standard
transitional provision to reflect the amendment to section 71J of the Act by
Item 4. An import entry which is taken to have been withdrawn under the
existing section 71J will be taken to have been withdrawn under the new
subsection 711F(1A) following the commencement of this Amendment
Act.
Item 10 - Saving actions taken in
reference to application for refund or
rebate
This Item inserts a standard saving
provision to protect the validity of applications for refunds or rebates
which were created prior to the commencing day as defined in this provision
(that is, the commencment of the electronic refund application provisions of
this Amendment Act). This will ensure that such applications will be treated as
if they were applications created under the Customs Act as amended, with the
proviso that the time for making such applications had not expired before the
commencement day.
Item 11 - Application:
subsection 163(1B) of the Customs Act 1901
This Item inserts a standard application
provision to ensure that the section applies to applications regardless of
whether the application was made before or after the commencement of this
Schedule.
Schedule 2 - Deferred
payment of duty
This Schedule deals
with amendments to the Customs Act to expressly provide the time when payment of
Customs duty is required. At present, Customs duty is paid before imports are
released into home consumption, although there are no current provisions in the
Customs Act specifying the time when duty must be paid. It is necessary to do
so, so that a deferral of duty mechanism might then be properly grounded. The
proposed amendments in Item 4 will clarify the time when payment of
Customs duty is required and provide a mechanism for the deferral of payment of
Customs duty by enabling Regulations to prescribe later times for the payment of
such duty.
The other items in this Schedule
effect consequential amendments to the Customs Act resulting from this duty
deferral mechanism.
Customs Act
1901
Item 1 - Subsection
4(1)
This item amends subsection 4(1) of
the Customs Act by inserting a definition of "import duty". The purpose of this
amendment is to ensure the meaning of "import duty" in the new subsection 132AA
(Item 4 refers) and the existing section 132 of the Customs Act is
consistent.
Item 2 - After subsection
71B(4)
This Item inserts a new subsection
71B(4A) after the existing section 71B of the Customs
Act.
Subsection 71B(4), in so far as is
relevant, currently provides that where a payment of Customs duty is made after
an import entry has been communicated to Customs, Customs must give an authority
to take the goods into home consumption.
The
new section 132AA(1) (Item 4 refers) will insert a head of power to
enable the Regulations to prescribe the circumstances in which payment of import
duty may be made at a time other than at the time of entry of the goods for home
consumption [Item 2 of the table in the new subsection
132AA(1)].
The purpose of this new subsection
71B(4A) is to ensure that where import duty must be paid at a time other than at
the time of entry of the goods for home consumption pursuant to Item 2 of the
table in the new subsection 132AA(1), and where there has been compliance with
paragraph 71B(4)(a) of the Customs Act, Customs must grant an authority to deal
with the goods in accordance with paragraphs 71B(4)(c) and (d) (that is, allow
people to take delivery of their goods.)
This
will ensure that in situations where import duty deferral has been authorised
under the new duty deferral mechanism proposed in Item 4, importers will
be able to take delivery of their goods following compliance with the reporting
requirements of the Customs Act, but without having to pay any import duty owing
on the goods at that time.
Item 3 -
Paragraph 71F(6)(b)
This Item repeals the
existing paragraph 71F(6)(b) and inserts a new paragraph as a consequence of the
duty deferral mechanism proposed in Item
4.
The existing paragraph 71F(6)(b), in so
far as is relevant, provides that if an import entry is communicated to Customs
but the duty remains unpaid for a period of 30 days starting on day on which an
import entry advice in respect of the goods is communicated and, the Collector
gives a written notice requiring duty to be paid within a specified period, but
the duty is still not paid, then the import entry is taken to have been
withdrawn.
The purpose of this amendment is to
enable duty to remain unpaid during a deferral period which may be prescribed by
Regulation pursuant to Item 2 of the Table in the new subsection 132AA(1).
(Item 4 refers).
Item 4 - After
Section 132AA
Section 132AA - When
import duty must be paid
This Item inserts
a new section 132AA into the Customs Act specifying the time by which import
duty on goods must be paid.
There are no
current provisions in the Customs Act specifying when payment of import duty
must be made; rather it is a condition precedent to a delivery authority
permitting the removal of goods from Customs control [paragraph 71B(4)(b)
refers].
New subsection 132AA(1)
provides for the general rules for the payment of import duty, in three items,
as follows.
New Item 1 provides that for
goods which must be entered for home consumption, the time by which duty must be
paid is to be time of entry of the goods for home consumption (which is the same
time that the rate of import duty payable on such goods is determined under
section 132 of the Customs Act). The time of entry for home consumption is
taken to be the time when Customs communicates an import entry advice pursuant
to sections 71B and 71L of the Customs Act, acknowledging the receipt of an
import entry.
The purpose of this Item is to
establish the general rule for the payment of import duty, which is followed in
Item 2 by a head of power to enable duty deferral at a time prescribed in
regulations.
New Item 2 provides a head of
power to enable the Customs Regulations to prescribe the time when import duty
must be paid on goods which are required to be entered for home consumption.
The purpose of this amendment is to enable duty to be paid at a time other than
at the time of entry for home consumption. This will enable the time for
payment of duty to be deferred to a time after the entry of goods for home
consumption.
New Item 3 deals with those
goods which are not required to be entered for home consumption; that is, goods
exempted from entry under section 68 of the Customs Act. The time by which duty
on these goods must be paid is the time when information in relation to the
goods is provided under section 71 of the Customs Act or at the time when the
goods arrive in Australia, whichever is the later, as reflected in the new
subsection 71(2A) of the Customs Act as inserted by the Customs Amendment Act
(No 1) 1999.
A duty deferral facility is not
proposed for these goods.
New subsection
132AA(2) is intended to address the breadth of the Regulation making power
for the duty deferral circumstances countenanced by Item 2 of the table in the
new subsection 132AA(1). In particular, duty deferral in respect of goods can
include Regulations which prescribe the goods by reference to the class of
persons who import them.
Those persons may be identified by reference to their
characteristics (for example, persons who import goods to the value of x
per annum) or actions they might take in relation to the importation of
particular goods.
New subsection
132AA(3) equally amplifies the breadth of the Regulation making power for
the duty deferral circumstances countenanced by Item 2 of the table in the new
subsection 132AA(1). In particular, this subsection permits Regulations to
prescribe the duty deferral time to be a time specified by the Chief Executive
Officer of Customs.
New subsection
132AA(4) makes provision for the exceptions to the times when import duty
must be paid, as provided in the new subsection
132AA(1).
New Item 1 provides that the
time for payment of duty in respect of goods delivered into home consumption
without entry in paragraphs 69(5)(d) of the Customs Act (dealing with like
customable goods) and paragraph 70(7)(b) of the Customs Act (dealing with
special clearance goods) will not be affected by this new provision. Duty will
continue to be payable according to the terms of those respective sections.
New Item 2 provides that the time
for payment of duty in respect of goods taken into home consumption pursuant to
a permission granted by Customs under paragraph 77D(5)(b) of the Customs Act or
paragraph 77E(5)(b) of the Customs Act (relating to contingency arrangements
when COMPILE is down) will not be affected by this new provision. Duty
will continue to be payable according to the terms of those respective sections.
New Item 3 provides that the time for
payment of duty in respect of goods imported temporarily under section 162A of
the Customs Act will not be affected by this new provision. Duty will continue
to be payable according to the terms of that section.
Item 5 - Subsection
149(2)
This Item makes a technical drafting
amendment by omitting the reference to section 132 in subsection 149(2) of the
Customs Act and substituting a reference to sections 132 and the new section
132AA.
This is a consequential amendment
resulting from the insertion of the new subsection
132AA.
Item 6 -
Application
This a standard application
provision to ensure that the new section 132AA only applies to goods imported
after the commencement of the section, which is to be by Proclamation.
SCHEDULE 3 - Customs brokers (formerly
customs agents)
Part 1 - Customs agents
to be called customs brokers
Customs
Act 1901
The amendments proposed in
this Part of Schedule 3 relate to the renaming of “customs agents”
as “customs brokers”.
In 1991 the
Customs Agents Federation of Australia and the Customs Agents Institute
amalgamated into a single industry body named the Customs Brokers Council of
Australia Inc. It was agreed between Customs and the Customs Brokers Council of
Australia Inc at that time that the term “broker” would be used when
dealing with the industry. The proposed amendments reflect this change in
terminology.
As a consequence it is proposed
that the terms “corporate customs agents”, “agents
licence” and “National Customs Agents Licensing Advisory
Committee” will be replaced by the terms “corporate customs
broker”, “broker’s licence” and “National Customs
Brokers Licensing Advisory Committee"
respectively.
Item 1 - Subsection
77A(10)
Item 2 - Subsection 154(1)
(definition of deductible administrative
costs)
These items amend those
provisions of the Customs Act 1901 (“the Act”) to replace the
word “agent” with
“broker”.
Item 3 - Part XI
(heading)
This item replaces the heading to
Part XI of the Act to reflect the proposed replacement of the term
“customs agent” with “customs broker”. The Part of the
Act regulates the operation of “customs brokers” and certain people
authorised to act as an owner’s
agent.
Item 4 - Subsection 180(1)
(definition of agents licence)
This
item repeals the definition of “agents licence”. This definition
will be replaced by the definition of “broker’s licence” in
item 5.
Item 5 - Subsection
180(1)
This item inserts a definition of
“broker’s licence”. This term is defined to mean a
licence to act as a customs broker granted under section 183C of the Act,
including a licence renewed under section 183CJ. This is substantially the same
as the definition of “agents licence” which will be
repealed.
Item 6 - Subsection 180(1) (definition
of Committee)
This item repeals the
definition of “Committee”. This term is defined to mean the
National Customs Brokers Licensing Advisory Committee continued in existence by
subsection 183D(1) of the Act.
Item 7 -
Subsection 1801(1) (definition of corporate customs
agent)
This item repeals the definition
of “corporate customs agent”. This term will be replaced by the
term “corporate customs broker” in item
8.
Item 8 - Subsection
180(1)
This item inserts a definition of
“corporate customs broker”. This term is defined to mean a
customs broker that is a company or
partnership.
Item 9 - Subsection 180(1)
(definition of customs agent)
This
item repeals the definition of “customs agent”. This term will be
replaced by the term “customs broker” in item
10.
Item 10 - Subsection
180(1)
This item inserts a definition of
“customs broker”. This term is defined to mean a person who holds a
broker’s licence that is in force, and in relation to a place, means a
person who holds a broker’s licence to act as a customs broker at the
place.
Item 11 - Subsection 180(1)
(definition of nominee)
Item 12 -
Subsection 180(1) (definition of
nominee)
Item 13 - Subsection
180(1) (definition of
nominee)
Item 14 - Paragraph
181(2)(b)
Item 15 - Paragraphs 181(3)(a)
and (b)
Item 16 - Subsections 182(2),
183(2) and (3) and 183A(1)
Item 17
– Division 3 of Part XI
(heading)
Item 18 - Subsection
183B(2)
Item 19 - Subsection
183C(1)
Item 20 - Subsection
183C(1)
Item 21 - Subsection
183C(2)
Item 22 - Subsection
183C(2)
Item 23 - Subsection
183CA(1)
These 13 items amend various
provisions of the Act to change the word “agent” to
“broker” wherever it is
used.
Item 24 - At the end of paragraph
183CA(1)(a)
This item inserts the word
“and” at the end of paragraph 183CA(1)(a) of the Act in accordance
with current drafting style. This clarifies that the all conditions contained
in those paragraphs must be satisfied.
Item
25 - Paragraph 183CA(1)(b)
This item amends
paragraph 183CA(1)(b) of the Act to change the word “agent” to
“broker”.
Item 26 - At the end
of paragraphs 183CA(1)(b), (c) and (d)
This
item inserts the word “and” at the end of paragraphs 183CA(1)(b),
(c) and (d) of the Act. This clarifies that all the conditions contained in
those paragraphs must be satisfied.
Item 27
- Subsections 183CA(2), 183CB(1) and
183CC(1)
This item amends subsections
183CA(2), 183CB(1) and 183CC(1) of the Act to change the word
“agent” to
“broker”.
Item 28 - At the end
of subparagraph 183CC(1)(a)(i)
This item
inserts the word “or” at the end of subparagraph 183CC(a)(i) of the
Act. This clarifies that the conditions found in paragraph 183CC(1)(a) of the
Act are alternatives.
Item 29 -
Subparagraphs 183CC(1)(a)(ii) and
(iii)
This item amends subparagraphs
183CC(1)(a)(ii) and (iii) of the Act to change the word “agent” to
“broker”.
Item 30 - At the end
of subparagraph 183CC(1)(a)(iii)
This item
inserts the word “or” at the end of subparagraph 183CC(1)(a)(iii) of
the Act. This clarifies that the conditions found in subsections 183CC(1) of
the Act are alternatives.
Item 31 -
Subparagraph 183CC(1)(b)(i)
This item
amends subparagraph 183CC(1)(b)(i) of the Act to change the word
“agent” to
“broker”.
Item 32 - At the end
of subparagraph 183CC(1)(b)(i)
This item
inserts the word “or” at the end of subparagraph 183CC(1)(b)(i) of
the Act. This clarifies that the conditions found in paragraph 183CC(1)(b) of
the Act are alternatives.
Item 33 -
Subparagraph 183CC(1)(b)(ii)
Item 34 -
Subparagraph 183CC(1)(b)(iii)
Item 35 -
Subparagraph 183CC(1)(c)(ii)
Item 36 -
Subsection 183CC(2)
Item 37 - Subsection
183CC(4A)
Item 38 - Subsection
183CC(5)
Item 39 - Subsection
183CD(1)
These 7 items amend various
provisions of the Act to change the word “agent” to
“broker” wherever it is
used.
Item 40 - At the end of paragraph
183CD(1)(a)
This item inserts the word
“and” at the end of paragraph 183CD(1)(a) of the Act. This
clarifies that all the conditions contained in subsection 183CD(1) of the Act
must be satisfied.
Item 41 - Paragraph
183CD(1)(b)
This item amends paragraph
183CD(1)(b) of the Act to change the word “agent” to
“broker”.
Item 42 - At the end
of paragraph 183CD(1)(b)
This item inserts
the word “and” at the end of paragraph 183CD(1)(b) of the Act. This
clarifies that all the conditions contained in subsection 183CD(1) of the Act
must be satisfied.
Item 43 - Paragraph
183CD(1)(c)
This item amends paragraph
183CD(1)(c) of the Act to change the word “agent” to
“broker”.
Item 44 - At the end
of paragraph 183CD(1)(c)
This item inserts
the word “and” at the end of paragraph 183CD(1)(c) of the Act. This
clarifies that all the conditions contained in subsection 183CD(1) of the Act
must be satisfied.
Item 45 - Paragraph
183CD(1)(d)
This item amends paragraph
183CD(1)(d) of the Act to change the word “agent” to
“broker”.
Item 46 - At the end
of paragraph 183CD(1)(d)
This item inserts
the word “and” at the end of paragraph 183CD(1)(d) of the Act. This
clarifies that all the conditions contained in subsection 183CD(1) of the Act
must be satisfied.
Item 47 - Paragraph
183CD(1)(e)
This item amends paragraph
183CD(1)(e) of the Act to change the word “agent” to
“broker”.
Item 48 - At the end
of paragraph 183CD(1)(e)
This item inserts
the word “and” at the end of paragraph 183CD(1)(e) of the Act. This
clarifies that all the conditions contained in subsection 183CD(1) of the Act
must be satisfied.
Item 49 - Paragraph
183CD(1)(f)
This item amends paragraph
183CD(1)(f) of the Act to change the word “agent” to
“broker”.
Item 50 - At the end
of paragraphs 183CD(1)(f) and (g)
This item
inserts the word “and” at the end of paragraphs 183CD(1)(f) and (g)
of the Act. This clarifies that all the conditions contained in subsection
183CD(1) of the Act must be satisfied.
Item
51 - Paragraph 183CD(1)(h)
Item 52 -
Paragraph 183CD(1)(h)
Item 53 -
Paragraph 183CD(1)(j)
Item 54 -
Subsection 183CD(2)
Item 55 - Paragraph
183CD(2)(b)
Item 56 - Subsection
183CD(3)
Item 57 - Paragraph
183CD(3)(b)
Item 58 - Subsection
183CD(4)
Item 59 - Paragraph
183CD(4)(a)
Item 60 - Subsection
183CE(1)
Item 61 - Paragraphs
183CE(1)(a) and (b)
Item 62 - Subsection
183CE(2)
Item 63 - Subsection
183CF(1)
Item 64 - Subsection
183CF(1)
Item 65 - Subsection
183CF(1)
Item 66 - Subsection
183CF(2)
Item 67 - Subsection
183CF(2)
Item 68 - Subsection
183CF(2)
Item 69 - Subsection
183CF(4)
Item 70 - Subsections 183CG(1)
and (2)
Item 71 - Subsection
183CG(2)
Item 72 - Subsection
183CG(3)
Item 73 - Subsection
183CG(3)
Item 74 - Subsection
183CG(4)
Item 75 - Subsection
183CG(4)
Item 76 - Subsections 183CG(5)
and (6)
Item 77 - Subsections 183CG(7)
and (8)
Item 78 - Subsection
183CH(1)
Item 79 - Subsection
183CJ(1)
Item 80 - Subsection
183CJ(1)
Item 81 - Paragraph
183CJ(1)(d)
Item 82 - Paragraph
183CJ(1)(d)
Item 83 - Subsection
183CJ(3)
Item 84 - Subsection
183CK(1)
Item 85 - Subsection
183CK(1)
Item 86 - Subsection
183CK(1)
Item 87 - Subsection
183CK(2)
Item 88 - Subsection
183CK(2)
Item 89 - Subsection
183CK(2)
Item 90 - Subsection
183CK(2)
Item 91 - Subsection
183CK(3)
Item 92 - Subsection
183CK(4)
Item 93 - Subsection
183CK(4)
Item 94 - Subsection
183CK(4)
Item 95 - Subsection
183CK(4)
Item 96 - Subsection
183CK(5)
Item 97 - Subsection
CL(1)
Item 98 - Paragraph
183CL(2)(a)
Item 99 - Section
183CM
Item 100 - Subsection
183CN(1)
Item 101 - Subsection
183CN(1)
Item 102 - Subsection
183CN(1)
Item 103 - Paragraph
183CN(1)(b)
Item 104 - Paragraph
183CN(1)(c)
Item 105 - Subsection
183CN(2)
Item 106 - Section
183CP
Item 107 - Section
183CP
Item 108 - Subsections 183CQ(1) to
(5) and 183CR(1)
Item 109 - Subsection
183CR(2)
Item 110 - Subsection
183CR(2)
Item 111 - Subsections 183CR(4)
and 183CS(1)
Item 112 - Subsection
183CS(1)
Item 113 - Subsection
183CS(2)
Item 114 - Subsection
183CS(2)
Item 115 - Subsection
183CT(1)
Item 116 - Subsection
183CT(1)
Item 117 - Subsection
183CT(2)
Item 118 - Subsection
183CT(2)8
Item 119 - Section
183CU
Item 120 - Division 5 of Part XI
(heading)
The preceding 70 items amend
various provisions of the Act to change the word “agent” to
“broker” wherever it is
used.
Item 121 - Subsection
183D(1)
This item provides that the body
known as the National Customs Agents Licensing Advisory Committee continues in
existence as the National Customs Brokers Licensing Advisory
Committee.
Item 122 - Paragraphs 183D(2)(d)
and 183DA(1)(b)
Item 123 - subsection
183DA(4)
Item 124 - Paragraph
183R(2)(a)
Item 125 - Subsection
183S(1)
Item 126 - Subsections 273GAA(1)
and (2)
These items amend various
provisions of the Act to change the word “agent” to
“broker” wherever it is
used.
Part 2 - Term of licence extended to 3
years
Customs Act
1901
Currently people can apply for an
agents licence, which allows them to act as a customs agent or a corporate
customs agent.
Agents licences remain in force
until 31 December of each year. Hence agents licences have a maximum duration
of 1 year.
After consultation with the Customs
Brokers Council of Australia Inc and the National Customs Agents Licensing
Advisory Committee it was decided to extend the duration of brokers licence from
1 year to 3 years. This will reduce the burden on brokers, although they will
still be required to notify the CEO within 30 days of certain matters, for
example if the holder of the licence is convicted of a prescribed
offence.
It is proposed that all licences will
still be renewable on the same day. Any licences that are granted during the
three year period will be renewable on the same day as all other
licences.
It is also proposed to change the
date on which licences are renewable. Currently licences remain in force until
31 December and are renewed on 1 January of each year. It is proposed that
they will continue in force until 30 June and be renewable on 1 July.
This will reduce the burden on brokers at a busy time of
year.
Item 127 - Paragraph
183CH(1)(b)
Paragraph 183CH(1)(b) of the
Act provides that licences remain in force until the 31 December following the
granting of the licence, but such licences are
renewable.
Item 127 changes the day on which
licences remain in force. They will remain in force “until the end of the
licence expiry day”. The licence expiry day is defined in new subsection
183CH(1A) (see item 128).
Item 128 -
After subsection 183CH(1)
This item inserts
a new subsection 128CH(1A) into the Act. New subsection 128CH(1A) sets out what
the licence expiry days are.
These amendments
commence on 1 July 2000. Any licences renewed on 1 January 2000 or
granted during 2000 will continue in force until 31 December 2000
under the current provisions of the Act. The first licence expiry day is
31 December 2000, hence ensuring that when the Act is amended, that
these licences will still continue in force until
31 December 2000.
The next licence
expiry day is proposed to be 30 June 2003. This means that licences
renewed on 1 January 2001 and granted between 1 January 2001
and 30 June 2003 will continue in force until 30 June 2003.
Licences that are renewed on 1 January 2001 will have a duration of
two and a half years (this moves the renewal date into the middle of the
calendar year).
Any later licence expiry days
will be three years from the previous licence expiry day. Therefore after
30 June 2003 the next expiry day will be 30 June 2006, and so
on.
Item 129 - Subsection
183CJ(5)
Subsection 183CJ(5) of the Act
currently provides that a licence that is renewed continues in force for 12
months after the renewal.
Since renewed
licences will be in force longer than 12 months s item ensures that licences
that are renewed under the new provisions continue in force until the next
licence expiry day.
Item 130 - After
subsection 183CL(2)
This item inserts a new
subsection 183CL(2A) into the Act. Subsection 183CL(1) provides that the fees
that are payable in respect of agents licences may be prescribed. Subsection
183CL(2) of the Act provides that different fees may be payable for different
classes of agents (currently corporate customs agents pay a different fee than
customs agents) and the time within which fees are payable may be
prescribed.
New subsection 183CL(2A) will allow
different fees to be prescribed depending on the length of the licence.
Subsection 183CL(3) provides that licence fees may include an amount with regard
to the cost of the establishment, administration and operation of the Committee,
it may be necessary to charge lesser fees for shorter licences. Since all
licences have the same expiry day, licences granted before the expiry day will
be different lengths.
Part 3 - Transitional
provisions
Item 131 - Agents licences
continue as broker’s licences
This
item ensures that when the amendments in this Schedule commence on 1 July 2000
any existing agents licences will continue in force as a broker’s licence
as if it had been granted after the commencement of these
amendments.
Subitem 130(2) provides that
continuation of these licences under this item does not prevent a licence from
being suspended, cancelled, altered or endorsed. Nor does it stop an
endorsement on a licence being varied.
Item
132 - Continuing membership of the
Committee
This item ensures that members of
the existing National Customs Agents Licensing Advisory Committee continue as
members of the renamed National Customs Brokers Licensing Advisory Committee
when the amendments contained in this Schedule
commence.
This item also ensures that the
duration of a members office on the Committee remains the same when the name of
the Committee is changed.