Commonwealth Numbered Regulations

CUSTOMS REGULATIONS (AMENDMENT) 1998 No. 38 - REG 3

3.1 Omit the regulations, substitute: Manufacturing in bond (regulations 71 to
74G)

"70. (1) Regulations 71 to 74G deal with giving approval to use goods in a
manufacturing warehouse for the manufacture of other goods.

"(2) In those regulations, using goods in a manufacturing warehouse to
manufacture other goods is referred to as manufacturing in bond.

"(3) In those regulations:
affected person means:

   (a)  an applicant for approval to manufacture in bond; or

   (b)  a person who has received an approval.
application means an application for approval to manufacture in bond.
Department means the Department of Industry, Science and Tourism.
DIST Secretary means the Secretary to the Department. Application for approval
to manufacture in bond

"71. (1) A person may apply to the DIST Secretary for approval to manufacture
in bond.

"(2) The application must be made using the form approved by the DIST
Secretary.

"(3) The applicant must give the DIST Secretary the information required by
the form, including the applicantŐs business plan.

"(4) The business plan must give an outline of the applicantŐs plans for
manufacturing in bond and, in particular, plans for selling the goods
manufactured.

"(5) The application must also be signed in the way the form directs.

"(6) The application must then be lodged at an office of the Department.

"(7) The approved application form is a disallowable instrument for section
46A of the Acts Interpretation Act 1901. Decisions about applications

"72. (1) The DIST Secretary must consider an application.

"(2) If the DIST Secretary has enough information to make a decision, the DIST
Secretary may:

   (a)  approve the application; or

   (b)  refuse the application.

"(3) If the DIST Secretary considers that the information given by the
applicant with the application is insufficient for deciding the application,
the DIST Secretary may request the applicant to give further information.
Criteria for decisions

"73. In making a decision about an application, the DIST Secretary must
consider whether it is reasonable to approve the application, having regard
to:

   (a)  the applicantŐs business plan; and

   (b)  the likely increase in the level of the applicantŐs sales overseas if
        the approval is given; and

   (c)  whether an earlier approval given to the applicant has been revoked or
        made subject to additional conditions after being reassessed; and

   (d)  any contracts for the sale overseas of the manufactured goods to which
        the applicant is a party; and

   (e)  details of any market research conducted by the applicant about the
        goods the applicant proposes to manufacture in bond; and

   (f)  any other information required by the application form. Approval
        subject to conditions

"74. (1) The DIST Secretary may include in the approval conditions to which
the approval is subject.

"(2) The DIST Secretary may revoke an approval if the holder of the approval
does not comply with a condition. Reassessment of decisions

"74A. (1) The DIST Secretary may, at any time, reassess an approval.

"(2) At least 28 days before reassessing an approval, the DIST Secretary must
tell the holder of the approval, in writing, of the intention to reassess the
approval.

"(3) The DIST Secretary must also invite the holder to give the DIST Secretary
any information that the holder considers relevant to the reassessment.

"(4) In reassessing an approval, the DIST Secretary may:

   (a)  revoke the approval; or

   (b)  make the approval subject to conditions; or

   (c)  change any conditions to which the approval is subject.

"(5) The DIST Secretary must decide whether it is reasonable to act under
subregulation (4) having regard to:

   (a)  any information given by the holder; and

   (b)  other information the DIST Secretary considers relevant to the
        reassessment.

"(6) The DIST Secretary may still act under subregulation (4) if the holder of
the approval does not respond to the invitation under subregulation (3).
Telling affected person of decision on application or reassessment

"74B. (1) The DIST Secretary must tell an affected person, in writing, of a
decision:

   (a)  about an application (including the conditions, if any, under
        subregulation 74 (1)); or

   (b)  after a reassessment.

"(2) The DIST Secretary must tell the affected person of the decision within
28 days after making the decision.

"(3) When telling the affected person of the decision, the DIST Secretary must
also tell the affected person that application may be made to the
Administrative Appeals Tribunal under the Administrative  Appeals Tribunal Act
1975 for review of an unfavourable decision.

"(4) For subregulation (3), an unfavourable decision is:

   (a)  refusing to give an approval to manufacture in bond; or

   (b)  giving an approval subject to conditions; or

   (c)  imposing additional conditions on an existing approval; or

   (d)  revoking an approval.

"(5) The DIST Secretary must also tell the affected person that, unless
subsection 28 (4) of that Act applies, a person who is entitled to apply to
the Tribunal for review of the decision may, under section 28 of that Act,
request a statement that includes the reasons for the decision.

"(6) A contravention of subregulation (3) or (5) for a decision does not
affect the validity of the decision. Review of decisions

"74C. Application may be made to the Administrative Appeals Tribunal for
review of an unfavourable decision mentioned in subregulation 74B (4). Telling
Customs of decisions

"74D. The DIST Secretary must tell Customs, in writing, of decisions made
under regulations 72, 74 and 74A. Getting information from Customs

"74E. (1) The DIST Secretary may request Customs, in writing, to give him or
her information that may help in considering or reassessing an application.

"(2) The CEO must comply with the request as soon as practicable.
Authorisation to make decisions

"74F. The DIST Secretary may, in writing, authorise a person holding or
performing the duties of an office in the Department to make decisions under
regulations 72, 74 and 74A, and to act under regulations 74B and 74E.
Requirements for manufacturing in bond

"74G. (1) This regulation applies if:

   (a)  an approval to manufacture in bond is in force; and

   (b)  the holder of the approval (the holder) is a holder of a warehouse
        licence under Part V of the Act.

"(2) Australian and imported goods may be used in the manufacture.

"(3) If an officer of Customs directs the holder to keep Australian and
imported goods separate from each other until they are to be used, the holder
must comply with the direction.

"(4) If the CEO directs the holder to keep books and accounts, and give
returns to an officer of Customs, the holder must comply with the direction.

"(5) Goods manufactured are subject to the control of the Customs until
delivery for home consumption or until exportation.

"(6) This regulation applies in addition to any obligations to which the
holder is subject as the holder of a warehouse licence.".