House of Representatives

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Immigration and Border Protection, Senator the Hon Michaelia Cash)

Outline

The purpose of this Bill is to amend the Customs Act 1901 (the Customs Act) to establish the Australian Trusted Trader Programme.

In particular the Bill will:

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Enable entities to nominate themselves to participate in the Australian Trusted Trader Programme (the Programme);

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Allow the Comptroller-General of Customs to enter into a trusted trader agreement (an agreement) with an entity and provide administrative benefits to that entity if:

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the entity nominates itself to participate in the Programme; and

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the Comptroller-General of Customs considers that it is reasonably likely that the entity will satisfy the qualification criteria set out in the rules;

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Allow the Comptroller-General of Customs to vary an agreement to provide additional administrative benefits and / or legislative benefits under Part IV (other than Division 1) and Part VI (other than Division 1) of the Customs Act if he or she is satisfied, following validation of the qualification criteria, that the entity satisfies the qualification criteria set out in the rules;

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Provide that agreements may be subject to conditions prescribed by the rules and terms and conditions specified in the agreement;

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Allow the Comptroller-General of Customs to vary, suspend or terminate an agreement unilaterally if he or she reasonably believes that the entity has not, or is not complying with any condition prescribed by the rules or any term or condition specified in the agreement;

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Allow a decision of the Comptroller-General of Customs to refuse to enter into a trusted trader agreement, to be a decision subject to review by the Administrative Appeals Tribunal (AAT);

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Allow a decision of the Comptroller-General of Customs to refuse to vary a trusted trader agreement, to be a decision subject to review by the AAT;

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Allow a unilateral decision of the Comptroller-General of Customs to vary, suspend or terminate a trusted trader agreement, to be a decision subject to review by the AAT;

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Allow the Comptroller-General of Customs to maintain a public register containing information of a kind prescribed by the rules in relation to each trusted trader agreement entered into under new Part XA of the Customs Act; and

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Allow the Comptroller-General of Customs to prescribe rules, by legislative instrument, for and in relation to the operation of the Programme.

Financial impact statement

The Bill has no financial impact.