Explanatory Statement

Issued by authority of Peter Dutton, Minister for Home Affairs

Customs Amendment (Fees) Regulations 2020

Customs Act 1901

The Customs Act 1901 (the Act) concerns customs related functions and is the legislative authority that sets out the customs requirements for the importation, and exportation, of goods to and from Australia.

Subsection 270(1) of the Act provides, in part, that the Governor-General may make regulations not inconsistent with the Act prescribing all matters, which by the Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the Act.

The purpose of the Customs Amendment (Fees) Regulations 2020 (the Amendment Regulations) is to amend the Customs Regulation 2015 (the Principal Regulation) to increase the hourly rate in relation to the overtime fee and location fee, and the hourly rate in relation to the travelling expenses to and from a customs depot, to $65.45 per hour.

Subsection 28(2) of the Act provides that if, at the request of a person, a Collector arranges for an officer to perform a function at a place outside the hours prescribed for that function, the person must pay an overtime fee. The overtime fee consists of a prescribed hourly rate and any prescribed travel expenses. The hours for the functions are prescribed in section 12 of the Principal Regulation.

Subsection 28(4) provides that if, at the request of a person, a Collector arranges for an officer to be available to perform a function at a place at which that function is not normally performed and during the hours prescribed for that function, the person must pay a location fee. The location fee also consists of an hourly rate plus any prescribed travel expenses.

The hourly rates in relation to the location fee and the overtime fee are prescribed in section 13 of the Principal Regulation. The previous rates are $43.35 for the overtime fee and $40.10 for the location fee. The fees, when last prescribed, reflected the expenses incurred by the Commonwealth in performing functions outside of prescribed hours or at places where the functions are not normally performed.

Depots are places which may be licensed for the purposes of holding imported goods subject to customs control and goods for export that are subject to customs control and for the unpacking and packing and examination of such goods. Subsection 77N(3) of the Act sets out general conditions for holding a depot licence and provides that the holder of the licence must pay to the Commonwealth any prescribed travelling expenses payable by the holder in relation to travelling to and from the depot by a Collector for the purposes of the Customs Acts.

The hourly rates for travelling to and from a depot are prescribed in section 33 of the Principal Regulation. The previous rates are $43.35 for each hour of travel that occurs outside prescribed hours in section 12 of the Principal Regulation and $40.10 for each hour of travel that occurs during prescribed hours in section 12. The fees, when first prescribed, reflected the expenses incurred by the Commonwealth in arranging a Collector to travel to and from a depot to perform a function under the Act.

The fees in section 13 of the Principal Regulation were last revised in 2000. The fees no longer reflect the expenses incurred by the Commonwealth in making available officers of Customs to perform functions outside of prescribed hours or at places where the functions are not normally performed. The increased hourly rate component of the overtime fee and the location fee of $65.45 per hour is based on the average cost of making officers available to perform functions in these circumstances.

The fees in section 33 of the Principal Regulation were last revised in 2002. Similar to the overtime fee and the location fee, the fees no longer reflect the expenses incurred by the Commonwealth for arranging a Collector to travel to and from a depot. The increased hourly rate component of the travel expenses of $65.45 per hour is also based on the average cost of making officers available to perform functions in these circumstances.

These fee increases enables the Commonwealth to recover some of the costs that the Commonwealth incurs for providing the relevant service.

Details of the Amendment Regulations are set in Attachment A.

The amendments made by Schedule 1 of the Amendment Regulations increase the hourly rate component of statutory fees, and do not otherwise alter existing arrangements. The amendments are minor and machinery in nature and no consultation was undertaken nor considered necessary nor appropriate.

A Statement of Compatibility with Human Rights in respect of the amendments contained in the Amendment Regulations is at Attachment B. The Statement assesses the amendments to be compatible with Australia's human rights obligations.

The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

The Amendment Regulations commence on the day after the Regulations are registered on the Federal Register of Legislation.

ATTACHMENT A

Details of the Customs Amendment (Fees) Regulations 2020

Section 1 Name

This section provides that the title of the Regulations is the Customs Amendment (Fees) Regulations 2020 (the Amendment Regulations).

Section 2 Commencement

This section sets out in a table the date on which provisions of the Amendment Regulations commence. Item 1 of the table provides that the whole of the Amendment Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.

Section 3 Authority

This section provides that the Amendment Regulations are made under the Customs Act 1901 (the Act).

Section 4 Schedules

This is the formal enabling provision for Schedule 1 of the Amendment Regulations, providing that each instrument that is specified in the Schedule to the Amendment Regulations, is amended or repealed as set out in the applicable items in the Schedule concerned. This provision also provides that any other item in a Schedules to this instrument has effect according to its terms.

The instrument that is amended is the Customs Regulation 2015 (the Principal Regulation).

Schedule 1-Amendments

Customs Regulation 2015

Items 1 and 2

Subsection 13(1) of the Principal Regulation prescribes the hourly rate for working out the overtime fee under subsection 28(3) of the Act. Item 1 increases this rate from $43.35 to $65.45.

Subsection 13(2) of the Principal Regulation prescribes the hourly rate for working out the location fee under subsection 28(5) of the Act. Item 2 increases this rate to from $40.10 to $65.45.

Items 3 and 4

Table item 1 under subsection 33(2) of the Principal Regulation prescribes the hourly rate for travel to and from a depot (during normal working hours). Item 3 increases this rate from $40.10 to $65.45.

Table item 2 under subsection 33(2) of the Principal Regulation prescribes the hourly rate for travel to and from a depot (outside normal working hours). Item 4 increases this rate from $43.35 to $65.45.

Item 5 In the appropriate position in Part 18

This item inserts new section 158 to the end of Part 18 of the Principal Regulation. New section 158 provides for the amendments made to the Principal Regulation by Schedule 1 to the Amendment Regulations to apply in relation to requests, or travel undertaken, on or after the commencement of Schedule 1 to the Amendment Regulations.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Customs Amendment (Fees) Regulations 2020

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Disallowable Legislative Instrument

The Disallowable Legislative Instrument titled Customs Amendment (Fees) Regulations 2020 amends the Customs Regulation 2015 (the Principal Regulation) to increase the hourly rate in relation to the overtime fee and location fee, and the hourly rate in relation to the travelling expenses to and from a customs depot, to $65.45 per hour.

Subsection 28(2) of the Act provides that if, at the request of a person, a Collector arranges for an officer to perform a function at a place outside the hours prescribed for that function, the person must pay an overtime fee. The overtime fee consists of a prescribed hourly rate and any prescribed travel expenses. The hours for the functions are prescribed in section 12 of the Principal Regulation.

Subsection 28(4) provides that if, at the request of a person, a Collector arranges for an officer to be available to perform a function at a place at which that function is not normally performed and during the hours prescribed for that function, the person must pay a location fee. The location fee also consists of an hourly rate plus any prescribed travel expenses.

The hourly rates in relation to the location fee and the overtime fee are prescribed in section 13 of the Principal Regulation. The previous rates are $43.35 for the overtime fee and $40.10 for the location fee. The fees, when last prescribed, reflected the expenses incurred by the Commonwealth in performing functions outside of prescribed hours or at places where the functions are not normally performed.

Depots are places which may be licensed for the purposes of holding imported goods subject to customs control and goods for export that are subject to customs control and for the unpacking and packing and examination of such goods. Subsection 77N(3) of the Act sets out general conditions for holding a depot licence and provides that the holder of the licence must pay to the Commonwealth any prescribed travelling expenses payable by the holder in relation to travelling to and from the depot by a Collector for the purposes of the Customs Acts.

The hourly rates for travelling to and from a depot are prescribed in section 33 of the Principal Regulation. The previous rates are $43.35 for each hour of travel that occurs outside prescribed hours in section 12 of the Principal Regulation and $40.10 for each hour of travel that occurs during prescribed hours in section 12. The fees, when first prescribed, reflected the expenses incurred by the Commonwealth in arranging a Collector to travel to and from a depot to perform a function under the Act.

The fees in section 13 of the Principal Regulation were last revised in 2000. The fees no longer reflect the expenses incurred by the Commonwealth in making available officers of Customs to perform functions outside of prescribed hours or at places where the functions are not normally performed. The increased hourly rate component of the overtime fee and the location fee of $65.45 per hour is based on the average cost of making officers available to perform functions in these circumstances.

The fees in section 33 of the Principal Regulation were last revised in 2002. Similar to the overtime fee and the location fee, the fees no longer reflect the expenses incurred by the Commonwealth for arranging a Collector to travel to and from a depot. The increased hourly rate component of the travel expenses of $65.45 per hour is also based on the average cost of making officers available to perform functions in these circumstances.

These fee increases enables the Commonwealth to recover some of the costs that the Commonwealth incurs for providing the relevant service.

Human rights implications

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.