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2004-2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CUSTOMS LEGISLATION AMENDMENT
(IMPORT PROCESSING CHARGES) BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Justice and Customs,
Senator the Honourable Christopher Martin Ellison)
CUSTOMS LEGISLATION AMENDMENT (IMPORT PROCESSING CHARGES)
BILL 2005
OUTLINE
The purpose of this Bill is to amend the Customs Act 1901 (the Customs Act) and
the Import Processing Charges Act 2001 (the IPC Act) to repeal self assessed
clearance declaration charge and screening charge. This Bill is one of two in the
legislative package to restructure the cost recovery regime for import related
services.
The IPC Act introduces new cost recovery arrangements to support changes to the
management and processing of cargo by the Australian Customs Service
(Customs) that are contained in the Customs Legislation Amendment and Repeal
(International Trade Modernisation) Act 2001 (the ITM Act). These cost recovery
arrangements give continuing effect to the Government's decision to fully recover
the cost of imports processing by Customs. The IPC Act and ITM Act were
enacted in 2001 but the charging provisions of these Acts have not commenced
and are due to commence in the second half of 2005.
Two of the charges that are imposed by the IPC Act are self-assessed clearance
declaration (SAC) charge and screening charge. These charges would be imposed
on low value consignments imported into Australia. The SAC charge would be
imposed on a declaration made under section 71AAAB of the Customs Act and the
amount of charge would be, in most circumstances, $2.15 per declaration. Where
a SAC is made by a cargo reporter in respect of 21 or more reportable documents,
the amount of the charge would be $45. The screening charge is imposed on a
special cargo reporter who communicates an abbreviated cargo report to Customs.
The amount of the screening charge would also be $45.
The Government has decided to streamline the total charging package to minimise
the administrative burden on industry in relation to charges on low value
consignments. In order to maintain full cost recovery of import processing, the cost
of processing low value consignments will be incorporated into the restructured
charges imposed on the processing of electronic import declarations and
warehouse declarations for goods imported into Australia. The restructured
charges are being imposed in the Import Processing Charges Amendment Bill
2005. The import industry strongly supports the proposed amalgamation of these
charges.
These amendments are consistent with Commonwealth Cost Recovery Guidelines
whereby charges that detract from administrative simplicity are eliminated.
Page 2 Customs Legislation Amendment (Import Processing Charges) Bill 2005
FINANCIAL IMPACT STATEMENT
The repeal of SAC charge and screening charge will have no financial impact as
the outcome is to remove charges that, had they been implemented, would have
recovered an estimated $9.2 million per annum in relation to low value
consignments. The cost of processing low value consignments will be incorporated
into the restructured charges imposed on the processing of electronic import
declarations and warehouse declarations.
Customs Legislation Amendment (Import Processing Charges) Bill 2005 Page 3
CUSTOMS LEGISLATION AMENDMENT (IMPORT PROCESSING CHARGES)
BILL 2005
NOTES ON CLAUSES
Clause 1 Short title
1. This clause provides for the Bill, when enacted, to be cited as the Customs
Legislation Amendment (Import Processing Charges) Act 2005.
Clause 2 - Commencement
1. Subclause (1) provides that each provision of this Act specified in column 1 of the
table in that subclause commences or is taken to have commenced on the day or
at the time specified in column 2 of the table.
2. Item 1 of the table provides that sections 1 to 3 and anything in this Act not
elsewhere covered by the table will commence on the day on which the Act
receives the Royal Assent.
3. Item 2 of the table provides that item 1 of Schedule 1 commences immediately
after the commencement of item 44 of Schedule 3 to the Customs Legislation
Amendment Act (No. 1) 2002.
4. Item 3 of the table provides that item 2 of Schedule 1 commences immediately
after the commencement of item 19 of Schedule 3 to the Customs Legislation
Amendment and Repeal (International Trade Modernisation) Act 2001.
5. Item 4 of the table provides that items 3 and 4 of Schedule 1 commence
immediately after the commencement of item 119 of Schedule 3 to the Customs
Legislation Amendment and Repeal (International Trade Modernisation) Act 2001.
6. Item 5 of the table provides that items 5 to 7 of Schedule 1 commence immediately
after the commencement of items 6 to 11 of Schedule 1 to the Customs Legislation
Amendment (Application of International Trade Modernisation and Other
Measures) Act 2004.
7. Item 6 of the table provides that item 8 of Schedule 1 commences immediately
after the commencement of item 37 of Schedule 3 to the Customs Legislation
Amendment and Repeal (International Trade Modernisation) Act 2001.
8. Item 7 of the table provides that items 9 to 12 of Schedule 1 commence
immediately after the commencement of sections 3 to 6 of the Import Processing
Charges Act 2001.
Page 4 Customs Legislation Amendment (Import Processing Charges) Bill 2005
9. Item 8 of the table provides that item 13 of Schedule 1 commences immediately
after the commencement of Schedule 1 to the Import Processing Charges
(Amendment and Repeal) Act 2002.
10. The commencement of items 1 to 13 of Schedule 1 is explained in more detail
below in the notes for Schedule1.
11. Subclause (2) provides that Column 3 of the table contains additional information
that is not part of the Act.
Clause 3 - Schedule(s)
12. This clause is the formal enabling provision for the Schedule to the Bill, providing
that each Act specified in a Schedule is amended in accordance with the
applicable items of the Schedule. In this Bill, the Customs Act 1901 (the Customs
Act) and the Import Processing Charges Act 2001 (the IPC Act) are being
amended.
13. 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.
Customs Legislation Amendment (Import Processing Charges) Bill 2005 Page 5
SCHEDULE 1 - AMENDMENTS
Customs Act 1901
Item 1 - Subsection 4(1) (definition of screening charge)
14. This item amends subsection 4(1) of the Customs Act by repealing the definition of
screening charge. This is a consequence of the repeal of screening charge
imposed by the IPC Act (see item 11 below).
15. This item commences immediately after the commencement of item 44 of Schedule
3 to the Customs Legislation Amendment Act (No. 1) 2002. Item 44 inserts the
definition of screening charge into the Customs Act.
Item 2 - Subsection 4(1) (definition of self-assessed clearance declaration
charge)
16. This item amends subsection 4(1) of the Customs Act by repealing the definition of
self-assessed clearance declaration charge. This is a consequence of the repeal
of self-assessed clearance declaration charge imposed by the IPC Act (see item 11
below).
17. This item commences immediately after the commencement of item 19 of Schedule
3 to the Customs Legislation Amendment and Repeal (International Trade
Modernisation) Act 2001 (the ITM Act). Item 19 inserts the definition of self-
assessed clearance declaration charge into the Customs Act.
Item 3 - Section 64ABC
18. This item repeals section 64ABC of the Customs Act. This section creates the
liability of a special cargo reporter who communicates an abbreviated cargo report
to Customs to pay screening charge. This section is being repealed as a
consequence of the repeal of screening charge imposed by the IPC Act (see item
11 below).
Item 4 - Section 67EA
19. This item is a technical amendment only and amends section 67EA of the Customs
Act to remove the reference to section 64ABC as a consequence of the repeal of
section 64ABC by item 3 above.
20. Items 3 and 4 commence immediately after the commencement of item 119 of
Schedule 3 to the ITM Act. Item 119 inserts section 64ABC into the Customs Act.
Page 6 Customs Legislation Amendment (Import Processing Charges) Bill 2005
Item 5 - Subsection 71AAAL(1)
21. This item is a technical amendment only and amends subsection 71AAAL(1) of the
Customs Act to omit the reference to self-assessed clearance declaration charge
as a consequence of the repeal of this charge by item 11 below.
Item 6 - Paragraph 71AAAP(6)(b)
22. This item is a technical amendment only and amends paragraph 71AAAP(6)(b) of
the Customs Act to omit the reference to self-assessed clearance declaration
charge as a consequence of the repeal of this charge by item 11 below.
Item 7 - Section 71AAA
23. This item repeals section 71AAA of the Customs Act. This section creates the
liability of a person who communicates a self-assessed clearance declaration to
Customs to pay self assessed clearance declaration charge. This section is being
repealed as a consequence of the repeal of self-assessed clearance declaration
charge imposed by the IPC Act (see item 11 below).
24. Items 5 to 7 commence immediately after the commencement of items 6 to 11 of
Schedule 1 to the Customs Legislation Amendment (Application of International
Trade Modernisation and Other Measures) Act 2004 (the Application Act). Item 6
of the Application Act inserts sections 71AAAL and 71AAAP into the Customs Act
and item 7 of the Application Act amends section 71AAA.
Item 8 - Section 71AAB
25. This item repeals section 71AAB of the Customs Act. This section sets out when
self-assessed declaration screening charge is to be paid and enables special
arrangements to be made for the payment of that charge. This section is being
repealed as a consequence of the repeal of self-assessed clearance declaration
charge imposed by the IPC Act (see item 11 below).
26. This item commences immediately after the commencement of item 37 of Schedule
3 to the ITM Act. Item 37 inserts section 71AAB into the Customs Act.
Import Processing Charges Act 2001
Item 9 - Subsection 3(1) (paragraphs (a) and (b) of the definition of import
processing charge
27. This item repeals paragraphs 3(1)(a) and (b) of the definition of import processing
charge in the IPC Act. These paragraphs set out the definitions of screening
charge and self-assessed clearance declaration processing charge for the
purposes of the IPC Act. These definitions are being repealed as a consequence
of the repeal of these charges by item 11 below.
Customs Legislation Amendment (Import Processing Charges) Bill 2005 Page 7
Item 10 - Subsection 3(1) (definition of reportable document)
28. This item repeals the definition of reportable document in subsection 3(1) of the
IPC Act. This definition is only relevant for the self-assessed clearance declaration
charge and is being repealed as a consequence of the repeal of that charge by
item 11 below.
Item 11 - Subsections 4(1) and (2)
29. This item repeals subsection 4(1) and (2) of the IPC Act. Subsection 4(1) imposes
screening charge and subsection 4(2) imposes self-assessed clearance declaration
charge. These charges are both being repealed.
Item 12 - Subsection 5(1)
30. This item repeals subsection 5(1) of the IPC Act. Subsection 5(1) sets out the
amount of self-assessed clearance declaration charge and is being repealed as a
consequence of the repeal of that charge by item 11 above.
31. Items 9 to 12 commence immediately after the commencement of sections 3 to 6 of
the IPC Act. The IPC Act will commence on the day fixed by Proclamation under
subsection 2(3) of the ITM Act. This day is expected to be in the second half of
2005.
Item 13 - Subsection 5(2)
32. This item repeals subsection 5(2) of the IPC Act. Subsection 5(2) sets out the
amount of screening charge and is being repealed as a consequence of the repeal
of that charge by item 11 above.
33. This commences immediately after the commencement of Schedule 1 to the Import
Processing Charges (Amendment and Repeal) Act 2002. Schedule 1 to that Act
amends subsection 5(2) so item 13 will commence immediately after that
amendment.
Page 8 Customs Legislation Amendment (Import Processing Charges) Bill 2005