Senate

Replacement Explanatory Memorandum

(Circulated by authority of the Attorney-General, the Honourable Nicola Roxon MP)

Outline

The purpose of this Bill is to amend the Customs Act 1901 (the Act) to create criminal offences for the smuggling of tobacco products and for the conveyance or possession of smuggled tobacco products where the person conveying or possessing the goods knows they were smuggled.

A smuggling offence currently exists in section 233 of the Act and is punishable by a pecuniary penalty of up to five times the duty evaded; however this offence is no longer considered an effective deterrent as many penalties currently imposed for tobacco smuggling are not paid.

On some occasions the investigation of the smuggling offence results in the identification of sufficient evidence to warrant the pursuit of fraud offences under the Criminal Code Act 1995 (Cth). In these cases offences carry penalties of up to 10 years imprisonment.

These new offences combine the penalties of the existing smuggling and fraud offences by providing a pecuniary penalty of up to five times the duty evaded in addition to up to 10 years imprisonment. The inclusion of the imprisonment penalty will provide a strong deterrent to criminals and will demonstrate the seriousness of smuggling acts.

Financial impact statement

Nil.