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2002-03
THE
PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
CUSTOMS LEGISLATION AMENDMENT
BILL (NO. 2) 2003
SUPPLEMENTARY EXPLANATORY
MEMORANDUM
(Amendments to be moved on behalf of the
Government)
(Circulated by
authority of the
Minister for Justice and Customs,
Senator the Honourable
Christopher Martin Ellison)
CUSTOMS LEGISLATION AMENDMENT BILL (NO. 2)
2003
OUTLINE
The purpose of the amendments is to amend
the Customs Legislation Amendment and Repeal (International Trade
Modernisation) Act 2001 (the ITM Act) to extend the maximum time for its
commencement for up to another year.
Amendments to the Customs Act
1901 (the Customs Act) made by the ITM Act will underpin the new Cargo
Management Re-Engineering project (CMR project) being undertaken by Customs.
CMR involves the development of complex new computerised information systems,
the main components of which are known as the Integrated Cargo System (ICS) and
the Customs Connect Facility (CCF). Customs and industry will require the
systems to be fully operational to support the amendments to the Customs Act
once they commence.
Currently, the amendments to the Customs Act
relating to the CMR project are expressed to commence upon Proclamation or, if
the Proclamation does not occur within the period of 3 years beginning on the
day on which the ITM Act received the Royal Assent, on the first day after the
end of that period i.e. 20 July 2004. It was originally considered
that the 3 year period was sufficient time to allow not only for the development
of the ICS and CCF by Customs, but also for the development, testing and
deployment by industry of business systems compatible with them for
communicating with Customs. However, it has become apparent that this time
frame will place pressure on the trading community’s ability to adjust,
particularly to the new import components of the system, which could in turn
significantly disrupt trade.
It is therefore proposed as a contingency
measure to extend the period to 4 years beginning on the day on which the ITM
Act received the Royal Assent. While this extension of time will allow an extra
year for development and testing of the ICS, it is expected that the ICS will be
operational well before the end of the period.
FINANCIAL IMPACT
STATEMENT
The amendments are expected to have an insignificant
financial impact.
CUSTOMS LEGISLATION AMENDMENT BILL (NO. 2)
2003
NOTES ON AMENDMENTS
Amendment
(1)
This amendment will amend the commencement provisions set out in
clause 2 of the Customs Legislation Amendment Bill (No. 2) 2003 by inserting a
reference to new Part 5A of Schedule 1 to the Bill. New Part 5A will commence
on the day on which the Act receives the Royal Assent.
Amendment
(2)
This item amends Schedule 1 to the Customs Legislation Amendment
Bill (No. 2) 2003 by inserting new Part 5A.
New Part 5A will amend
subsection 2(7) of the ITM Act by omitting the reference to 3 years and
substituting “4 years”. Subsection 2(7) of the ITM Act contains the
default commencement provision for the amendments to the Customs Act that will
underpin the new CMR project being undertaken by the Customs. The amendment
will mean that the period within which these amendments can commence is up to 4
years after the ITM Act received the Royal Assent, instead of 3 years, which
will allow necessary extra time for the development and testing of the
applicable information systems.