House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Immigration and Border Protection, the Honourable Peter Dutton MP)

Statement of compatibility with human rights

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

Customs Amendment (Fees And Charges) Bill 2015

This Bill 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 Customs Amendment (Fees and Charges) Bill 2015

The Customs Amendment (Fees and Charges) Bill 2015 (the Bill):

(a)

amends the amount of warehoused goods declaration fee payable under section 71BA of the Customs Act 1901 (the Customs Act);

(b)

sets out the circumstances in which new warehouse licence application charge and warehouse licence variation charge are payable, and the warehouse licence grant and renewal charges, are payable. These charges will be imposed under the Customs Depot Licensing Charges Amendment Bill 2015; and

(c)

sets out the circumstances in which the new customs broker licence application charge, and the customs broker licence grant and renewal charges, are payable. These charges will also be imposed under the Customs Depot Licensing Charges Amendment Bill 2015;

(d)

introduces a new head of power to enable the charging of fees for service in respect of matters under the Customs Act.

Human rights implication

The Bill does not raise any human rights issues. The Bill increases a fee that is currently payable for the processing of a warehoused goods declaration. The Bill also introduces the framework for the new charges for the processing of applications for a warehouse licence and a customs broker licence, and for the variation of a warehouse licence (which complement charges that already apply under these two licensing regimes). The Bill also introduces a new head of power that will allow fees for service to be charged in relation to a wider range of services provided under the Customs Act.

Conclusion

The Bill is compatible with human rights as it does not raise any human rights issues.

The Minister for Immigration and Border Protection, the Honourable Peter Dutton MP

Import Processing Charges Amendment Bill 2015

Background

Warehoused goods declaration fee

1. Under section 71BA of the Customs Act, a warehoused goods declaration fee is payable when an import declaration for warehoused goods is made under section 71A. Warehoused goods are imported goods that are in a customs warehouse and are intended to be released into home consumption.

2. The amount of warehoused goods declaration fee is currently $23.20 for an electronic import declaration and $60.00 for a documentary import declaration. The Amendment Bill changes these amounts to $23.00 and $63.00 respectively which gives effect to one of the recommendations of the Joint Review.

Warehouse licences

3. Under Part V of the Customs Act, a person or partnership can be licensed to operate a warehouse. Licensed warehouses are used to store imported goods in respect of which customs duty has not been paid. Such goods remain subject to customs control until the duty is paid and the goods are delivered into home consumption. The main difference between a customs depot (licensed under Part IV of the Customs Act) and a warehouse is that warehouses are used for longer term storage of goods. These goods have been entered for warehousing and detailed information on the goods including value, origin and classification has been communicated to the Department of Immigration and Border Protection. Warehoused goods remain subject to customs control until such time as they are entered for home consumption and the duty is paid.

4. Under Part IVA of the Customs Act, a person or partnership can be licensed to operate a depot. Such licensed depots are used to store imported goods and goods for export subject to customs control until the goods are entered for home consumption and the duty is paid or the goods are exported. Storage of goods in depots is short term only without requiring a declaration to be made. Depots can be used for the unpacking and deconsolidation of imported goods while still under customs control. They are also used to consolidate goods for export.

5. There are many similarities in the administration of licensed warehouses and depots. However, currently there are differences in the types of fees that are payable in relation to the licences under each regime.

6. In relation to depot licences, charges are payable in relation to the application for the granting or variation to, and the granting and renewal of, a depot licence. However, in relation to a warehouse licence, a fee is payable only in respect of the granting and renewal of a warehouse licence. The Amendment Bill, in conjunction with the Customs Depot Licensing Charges Amendment Bill 2015, amends the regime governing warehouse licence fees, including introducing new charges for an application for the granting, and an application for the variation, of a warehouse licence. This gives effect to recommendations of the Joint Review.

Customs broker licences

7. Under Part XI of the Customs Act, a person can be licensed to act as a customs broker. Under section 181 of the Customs Act, an owner of goods may authorise a licensed customs broker to act as his or her agent for the purposes of the Customs Act. The only other person that can be authorised to act as an agent is a natural person who is an employee of the owner of the goods (and not the employee of anyone else).

8. A fee is currently payable only in respect of the granting and renewal of a customs broker licence. The Amendment Bill, in conjunction with the Customs Depot Licensing Charges Amendment Bill 2015, amends the regime governing customs broker licence fees, including introducing a new charge for an application for the granting of a customs broker licence. This also gives effect to a recommendation of the Joint Review.