House of Representatives

Explanatory Memorandum

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

Schedule 4 - Permission to move, alter or interfere with goods for export

Customs Act 1901

Background

54. Under section 30 of the Customs Act, all goods for export are subject to customs control from the time they are brought into a prescribed place for export until their exportation to a place outside Australia. Prescribed places are set out in section 14 of the Customs Regulation 2015 and include airports and wharves appointed under section 15 of the Customs Act.

55. Under section 33 of the Customs Act, there are several offences relating to moving, altering or interfering with goods subject to customs control where these activities are not authorised under the Customs Act. Existing section 119AA of the Customs Act allows for an application to be made to the Department for permission to move, alter or interfere with goods for export that are subject to customs control, that have been entered for export and in relation to which an authority to deal is in force.

56. In April 2014, all Australian international gateway airports commenced screening all duty-free liquids, aerosols and gels (LAGs) presented at a departure screening point. This applies to LAGs provided they are contained in a sealed plastic bag, such as those under the current duty-free 'sealed bag scheme' and have an accompanying proof of purchase. In the event that a duty-free LAG item triggers an alarm, it requires re-screening by the screening authority using a suite of LAG screening technologies. This requires the item to be removed from the duty-free packaging.

57. The opening of sealed duty-free bags or tampering with the contents while they are subject to customs control is unlawful under section 33 of the Customs Act, unless such interference is authorised by the Act.

58. Section 96A of the Customs Act deals with duty-free goods. Under that provision, goods that are purchased at an outwards duty-free shop are not required to be entered for export under section 113. As they are not required to be entered for export, an authority to deal is also not required under section 114C. Therefore, permission to interfere with the goods cannot be granted under section 119AA and there is no other statutory means by which authority to interfere with such goods can be granted.

Item 1 - Subsection 119AA(1)

59. This is a consequential amendment to the amendments made by items 2 and 3 below.

Item 2 - Paragraph 119AA(1)(a)

60. This is a consequential amendment to the amendment made by item 3 below.

Item 3 - Paragraphs 119AA(1)(b) and (c)

61. This item repeals and substitutes existing paragraphs 119AA(1)(b) and (c) of the Customs Act.

62. The effect of these amendments is to extend the circumstances in which an application can be made to move, alter or interfere with goods for export that are subject to customs control to circumstances where the goods are the subject of a permission in force under subsection 96A(2) of the Customs Act.

63. The amendments to section 119AA of the Customs Act also amend the wording in relation to goods that are subject to customs control under paragraph 30(1)(b), (c) or (d), and have been entered for export and an authority to deal with the goods is in force. These circumstances are covered in existing subsection 119AA(1) of the Customs Act.

Item 4 - Application provision

64. This provision provides that the amendments made by this Schedule apply to an application under subsection 119AA(2) on or after the commencement of the application provision to move, alter or interfere with goods where the goods were entered for export before, on or after commencement of these amendments or whether an authority to deal with the goods was given before, on or after commencement of the amendments.

65. This provision further provides that an application under subsection 119AA(2) on or after the commencement of the application provision to move, alter or interfere with goods for export applies in relation to permissions to export such goods without entering them for export under subsection 96A(2) that were given before, on or after commencement.