House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Justice and Customs Senator the honourable Amanda Vanstone)

SCHEDULE 1 - Australian Postal Corporation Act 1989 (APC ACT)

Item 1 - Paragraph 90N(1)(a)

1. This item amends paragraph 90N(1)(a) to provide that the opening of a mail article as allowed by new section 90T is not prohibited conduct under the APC Act.

Item 2 - Paragraph 90S(1)(a)

2. This items adds a new paragraph (aa) to subsection 90S of the APC Act to indicate that section 90S of the APC Act will not apply in the circumstances set out in new section 90T. Section 90S currently requires that a customs officer who has reasonable grounds to believe that an article of mail contains items on which customs duty or sales tax is payable, or things that are being carried in contravention of a law of the Commonwealth relating to the importation into, or exportation from, Australia of that thing, must request an authorised examiner to open the article of mail for the Customs officer to inspect. This amendment will remove the requirement that a customs officer must request an authorised officer to open the article in the circumstances set out in new section 90T.

Item 3 - After section 90S

3. This item inserts new section 90T . This section provides that where a Customs officer has reason to believe that the postal article consists of, or contains, drugs or other chemical compounds that are being carried in contravention of a law of the Commonwealth relating to the importation into, or exportation from, Australia the article may be opened by a Customs officer. A Customs officer who opens the article may examine the article to check whether it consists of such drugs or other chemical compounds.

4. If the article opened by the Customs officer does not consist of, or contain, prohibited drugs or other chemical compounds or any other thing on which duty or sales tax is payable or which is being carried in contravention of a law of the Commonwealth relating to the importation into, or exportation from, Australia of that thing, the Customs officer must close up the article and return it to the normal course of carriage. If the article does consist of, or contain, prohibited drugs or other chemical compounds or any other such thing, the article and its contents must be dealt with in accordance with applicable Commonwealth laws.

5. Regulations may be made prescribing the procedure to be followed by a Customs officer when closing an article and returning it to the normal course of post.

Item 4 - Subsection 90V(2)

6. This item amends subsection 90V(2) to clarify that that provision only relates to articles opened by Australia Post.

Item 5 - After subsection 90V(2)

7. This item inserts a new subsection 90V(2A) that provides that where an article is opened under section 90T by a Customs officer, then, before the article is returned to the normal course of carriage, the Customs officer must cause to be endorsed on the article a notification that the article has been opened by the Australian Customs Service and that explains the purpose for which it was opened.

Item 6 - Subsection 90V(3)

8. This item amends subsection 90V(3) consequent upon the insertion of new subsection 90V(2A) .

Item 7 - At the end of subsection 90ZC

9. This item adds a new subsection 90ZC(2) to clarify that the indemnity given to Australia Post and employees of Australia Post in relation to acts done or omitted in good faith extends to actions carried out by Customs officers under new section 90T or new subsection 90V(2A) .