House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Justice and Customs, Senator the Honourable Christopher Martin Ellison, MP)

Schedule 4 - Goods in transit through Australia

Goods in transit through Australia (that is, goods not being unshipped in Australia) are currently not reported to Customs under section 64AB of the Customs Act. Since those goods are not imported into Australia, they are not required to be entered. Customs therefore has no information about those goods thereby undermining the effectiveness of border controls.

In addition, if Customs becomes aware of dangerous or harmful goods in transit through Australia, Customs has limited powers to deal with those goods. For example, the Hazardous Waste (Regulation of Exports and Imports) Act 1989 , the Psychotropic Substances Act 1976 and the Narcotic Drugs Act 1976 allow Customs officers to exercise certain powers in respect of transit goods.

Under section 52A of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 an officer of Customs may require a person to produce a transit permit authorising the carrying out of a transit proposal (being a proposal to bring waste into Australia (whether or not by way of import) and to take the waste out of Australia within 30 days as long as it is not proposed to dispose of the waste in Australia).

Under section 9 of the Psychotropic Substances Act 1976 and section 22 of the Narcotic Drugs Act 1976 where a psychotropic substance or narcotic drug is passing through Australia, a Collector (certain officers of Customs) may, whether or not the substance or preparation is unloaded from the vessel or aircraft, require the person having possession or control of the substance or preparation to produce to him or her an export authorisation from another country. If the person does not produce an authorisation the Collector may seize the substance or preparation.

Section 31 of the Customs Act provides that goods that are on board any ship or aircraft from a place outside Australia are subject to the control of the Customs whilst the ship or aircraft is within the limits of any port or airport in Australia. This includes goods that are in transit through Australia. Under section 186 of the Customs Act an officer of Customs can examine those goods while they remain under Customs control.

The amendments contained in this Schedule will enhance these powers by ensuring that Customs is provided with information about goods that are in transit through Australia.

Once Customs has received information about goods that are in transit through Australia, there may be circumstances where Customs will want to examine those goods. Following examination Customs may seize those goods, with a warrant, if the Minister has reasonable grounds for suspecting that the goods are connected, whether directly or indirectly, with the carrying out of a terrorist act, whether the terrorist act has occurred, is occurring or is likely to occur. Customs may also seize goods, with a warrant, if the Minister has reasonable grounds to suspect that the existence or the shipment of them prejudices, or is likely to prejudice, Australias defence or security or international peace and security. Those goods can only be seized with a warrant issued by a Federal, State or Territory Judge. The following provisions also set out how such goods are to be dealt with once they have been seized.

These provisions operate in addition to those found in the Mutual Assistance in Criminal Matters Act 1987 and the Proceeds of Crime Act 1987 and they have no effect on those Acts or any other legislation relating to goods that are in transit through Australia.

Part 1 - Amendments commencing first

Customs Act 1901

Items 1 and 2

These items amend section 11 of the Customs Act so that the Governor-General may make arrangements with the Governors of States and the Administrator of the Northern Territory for the performance by certain Judges of the functions of a judicial officer under Subdivision DA of Division 1 of Part XII of the Customs Act, and under any other provisions in so far as they relate to that Subdivision. Subdivision DA relates to the seizure with warrant of certain goods that are in transit through Australia.

Item 3 - After subsection 64AB(3)

This item inserts into section 64AB of the Customs Act new provisions which will require the master or pilot or owner of a ship or aircraft arriving in Australia from overseas to report to Customs any goods on board the ship or aircraft that are not going to be unshipped in Australia.

New subsection 64AB(3AA) provides that if a ship is due to arrive at its first port in Australia since it last called at any port outside Australia, the master or owner of the ship (as defined by subsection 4(1) of the Customs Act) must communicate a report of cargo on board the ship that is intended to be kept on board the ship for shipment on to a place outside Australia. This report must be provided to Customs not later than 48 hours before the ships arrival at the port if its journey from the last port outside Australia is likely to take 48 hours or more. If the journey is likely to take less than 48 hours, the report must be provided not later than 24 hours before its arrival.

Whilst the master or owner of a ship must report other types of cargo at each port in Australia, being the port at which the cargo is going to be unshipped, cargo that is in transit through Australia is only required to be reported at the first Australian port that the ship arrives at since it last called at a port overseas.

New subsection 64AB(3AB) contains a similar provision in respect of cargo in transit through Australia on board an aircraft. If the report is made by document the report must be made within 3 hours after the arrival of the aircraft at the first Australian airport and if it is to be made by computer, it must be made at least 2 hours before the arrival of the aircraft in Australia.

New subsection 64AB(3AC) provides that if a person intentionally contravenes subsection (3AA) or (3AB) they commit an offence punishable, on conviction, by a penalty not exceeding 120 penalty units. There is currently no monetary penalty for not reporting a cargo report to Customs in respect of other types of cargo, but if such a report is not made, the master, pilot or owner will not be given a Collectors permit which allows the unloading of the cargo. Since cargo in transit through Australia is not intended to be unloaded, it is proposed to make it an offence to fail to provide a report of that cargo.

New subsection 64AB(3AD) provides that if a person contravenes those same provisions they commit an offence punishable, on conviction, by a penalty not exceeding 60 penalty units. This offence is an offence of strict liability (new subsection 64AB(3AE) refers).

Item 4 - Subsection 64AB(3A)

This item inserts references to new subsections 64AB(3AA) and (3AB) into subsection 64AB(3A) of the Customs Act. Subsection 64AB(3A) provides that a cargo report can be made by document or by computer.

Item 5 - Subsection 64AB(4)

This item amends subsection 64AB(4) of the Customs Act to ensure that the requirements that apply to documentary reports of cargo intended to be unshipped in Australia also apply to reports of cargo that is intended to be kept on board the ship or aircraft.

Item 6 - Subsection 64AB(5)

This item amends subsection 64AB(5) of the Customs Act to ensure that the requirements that apply to computer reports of cargo intended to be unshipped in Australia also apply to reports of cargo that is intended to be kept on board the ship or aircraft.

Item 7 - At the end of subsection 64AB(6)

This item amends subsection 64AB(6) of the Customs Act to ensure that the Chief Executive Officer of Customs can approve different types of approved forms and approved statements in respect of different kinds of cargo. Since Customs will require different kinds of information in respect of cargo that is in transit through Australia, this will allow the CEO to approve a different approved form and approved statement for that type of cargo.

Item 8 - Paragraph 64AB(7)(a)

This item amends paragraph 64AB(7)(a) to ensure that reports in respect of cargo that is in transit through Australia are treated the same as reports of cargo intended to be unshipped in Australia. Subsection 64AB(7) provides that if a report of cargo is made later than the relevant time but otherwise complies with the provisions of subsection (4) or (5) then for the purposes of sections 64ABB, 64ABC and 64ABD, the report is taken to have been communicated to Customs in accordance with section 64AB. Sections 64ABB, 64ABC and 64ABD relate to variations of cargo reports and charges. Subsection 64AB(7) ensures that a master, pilot or owner is not exempt from other provisions just because they made their report later than required.

Item 9 - Subsection 64ABA(1)

This item repeals and substitutes subsection 64ABA(1) of the Customs Act to ensure that cargo reports in respect of cargo that is in transit through Australia can be varied. The current provisions that apply to cargo that is going to be unshipped are reproduced in new paragraph 64ABA(1)(a). New paragraphs 64ABA(1)(b) and (c) set out when a cargo report in respect of transit cargo can be reported to Customs.

New paragraph 64ABA(1)(b) provides that the cargo report in respect of transit cargo can be varied at any time up until the time the ship leaves its last port in Australia before calling on a port outside Australia. New paragraph 64ABA(1)(c) contains a similar provision in respect of aircraft.

Item 10 - Subsection 183UA(1) (at the end of the definition of authorized person)

This item amends the definition of authorised person for the purposes of Division 1 of Part XII of the Customs Act. In relation to an application for, or the execution of, a seizure warrant under new section 203DA, Customs officers are authorized persons.

Item 11 - Subsection 183UA(1) (definition of judicial officer)

This item amends the definition of judicial officer for the purposes of that same Division. In relation to a search warrant or to a seizure warrant under section 203 the definition of judicial officer has not changed (paragraph (a) of the definition refers).

New paragraph (b) provides that in respect of a seizure warrant under section 203DA judicial officer means:

1.

a Judge of the Federal Court of Australia or of the Supreme Court of the Australian Capital Territory in relation to whom a consent under subsection 183UD(1), and a nomination under subsection 183UD(2), are in force;

2.

a Judge of the Supreme Court of a State in respect of whom an appropriate arrangement is in force under section 11 is applicable; or

3.

a Judge of the Supreme Court of the Northern Territory who is not a Judge referred to in subparagraph (i) and in respect of whom an appropriate arrangement in force under section 11 is applicable.

Item 12 - Subsection 183UA(1) (definition of seizure notice)

This item contains a technical amendment to the definition of seizure notice to ensure that it covers notices of the kind mentioned in section 209E.

Item 13 - Subsection 183UA(1) (at the end of the definition of seizure warrant)

This item contains a technical amendment to the definition of seizure warrant to ensure that it also covers warrants issued under new section 203DA.

Items 14 and 15

These items define terrorist act for the purposes of Division 1 of Part XII of the Customs Act. Under new section 203DA a judicial officer will be able to issue a warrant to seize goods if they are satisfied on oath that the Minister has reasonable grounds for suspecting that, amongst other things, the goods are connected, whether directly or indirectly, with the carrying out of a terrorist act, whether the terrorist act has occurred, is occurring or is likely to occur.

The definition of terrorist act for the purposes of these provisions (as contained in items 4 and 5) is the same as in the Financing of Terrorism Bill 2002 .

Item 16 - At the end of Subdivision A of Division 1 of Part XII

This item inserts section 183UD into the Customs Act. Under subsection (1) a Judge of the Federal Court of Australia or of the Supreme Court of the Australian Capital Territory may consent to be nominated by the Minister under subsection (2).

Subsection 183UD(2) provides that the Minister may nominate a Judge of the Federal Court of Australia or of the Supreme Court of the Australian Capital Territory to be a judicial officer for the purposes paragraph (b) of the definition of judicial officer in subsection 183UA(1). That nomination can only be made where the Judge has consented to being nominated.

This means that a Judge of the Federal Court of Australia or of the Supreme Court of the Australian Capital Territory can only issue a warrant to seize certain goods in transit through Australia if they have been nominated by the Minister for that purpose. They can only be nominated if they consent to being nominated.

Item 17 - Subsection 185B(8)

This item contains a technical amendment to section 185B, which allows the disposal of ships, to ensure that that section applies despite the new disposal provisions contained in Subdivision GA.

Item 18 - At the end of section 186

This item amends section 186 to make it clear that goods that are under Customs control because of the operation of section 31 continue to remain under Customs control even if they are removed from a ship or aircraft in the course of an examination under section 186.

Item 19 - Subsection 203A(1)

This item ensures that the current provisions in the Customs Act which allow the seizure of forfeited goods are not affected by these new provisions which allow a seizure warrant to be issued in respect of certain goods that are in transit through Australia (new section 203DA).

This will ensure that the provisions in section 203A of the Customs Act only apply to warrants issued under section 203 (and not new section 203DA).

Item 20 - After Subdivision D of Division 1 of Part XII

This item inserts a new subdivision DA into Division 1 of Part XII of the Customs Act. This new subdivision relates to the seizure of certain goods that are in transit through Australia.

New section 203DA sets out the circumstances in which seizure warrants can be issued in respect of goods in transit through Australia.

Subsection 203DA(1) provides that a judicial officer may issue a warrant to seize goods on or in particular premises (which under subsection 183UA(1) includes a place, a conveyance or a container) if the judicial officer is satisfied by information on oath that the Minister has reasonable grounds for suspecting that:

4.

the goods are, or within the next 72 hours will be, on or in the premises;

5.

the goods are in transit through Australia; and

6.

the goods satisfy either or both of the following:

7.

the goods are connected, whether directly or indirectly with the carrying out of a terrorist act, whether the terrorist act has occurred, is occurring or is likely to occur;

8.

the existence of the shipment of the goods prejudices, or is likely to prejudice, Australias defence or security or international peace and security.

Subsection 203DA(2) sets out those things that a judicial officer must state in a warrant when it is issued. These are a description of the goods, a description of the premises, the name of the authorised person (or other authorised person) who is responsible for executing the warrant, the time at which the warrant expires and whether the warrant may be executed at any time or only during particular hours.

Subsection 203DA(3) provides that the time at which the warrant expires must be a time that is not later than the end of the seventh day after the day on which the warrant is issued. This means that if the warrant is issued at 3pm on a Monday, the latest time at which the warrant can expire is midnight of the following Monday. However, the judicial officer can state in the warrant that it expires at some earlier time.

Subsection 203DA(4) provides that the judicial officer must also state in the warrant that the warrant also authorises the seizure of goods found on or in the premises that the executing officer or person assisting believes on reasonable grounds to be special forfeited goods, that is, prohibited imports and prohibited exports. There may be circumstances where an officer is searching a premises under a warrant issued under section 203DA and the officer finds special forfeited goods. Those goods will be able to be seized under the warrant (currently Customs can seize special forfeited goods at a Customs place without a warrant and at any other place with a warrant (except for narcotic goods that can be seized anywhere without a warrant)).

Subsection 203DA(5) makes it clear that successive warrants can be issued in relation to the same premises.

Subsection 203DA(6) provides that if an application for this type of warrant is made by telephone or other electronic means the warrant can only be issued if the judicial officer is satisfied by information on oath that the Minister has reasonable grounds for suspecting that the goods are, or within 48 hours will be, on or in the relevant premises. Further the warrant can remain in force for a maximum of 48 hours.

Subsection 203DA(7) makes it clear that a judicial officer of a particular State or Territory may issue a warrant in respect of the seizure of goods on or in premises in another State or Territory.

Section 203DB sets out the things that are authorised by seizure warrants for goods in transit. These things are the same as are currently authorised by seizure warrants in respect of forfeited goods (except seizure warrants issued under section 203DA will not authorise the search of persons at or near the premises).

A seizure warrant issued under section 203DA authorises the executing officer or person assisting to do the following:

9.

enter the warrant premises;

10.

search for the relevant goods;

11.

seize those goods; and

12.

seize other goods that the executing officer or person assisting believes on reasonable grounds to be special forfeited goods.

Subsections 203DB(2), (3) and (4) make it clear that:

13.

if the premises is not a conveyance or a container, the warrant extends to every conveyance or container on the premises;

14.

if the warrant allows the entry and search of a conveyance, the conveyance can be entered, wherever it is and that the warrant also extends to the containers on the conveyance; and

15.

if the warrant allows the entry and search of a container, the container can be entered, wherever it is, to the extent that it is of a size permitting entry.

Subsection 203DA(5) provides that if the warrant states that it may be executed only during particular hours, the warrant must not be executed outside those hours.

Item 21 - Subsection 203G(5) (paragraph (a) of the definition of a copy of the warrant)

This item contains a technical amendment to subsection 203G(5) to ensure that the provisions that apply to search warrants and existing seizure warrants also apply to seizure warrants issued under section 203DA. Section 203G requires the executing officer or person assisting to make available to certain persons a copy of the warrant.

Item 22 - Subsection 203K(5)

Again this item contains a technical amendment to ensure that the existing provisions relating to warrants also apply to warrants issued under section 203DA. Section 203K allows:

16.

the executing officer or person assisting to take photographs or video recordings of the premises or of things on or in the premises (with the occupiers consent);

17.

the executing officer and the persons assisting to complete the execution of a warrant where they have temporarily ceased its execution;

18.

the execution of a warrant to be completed where a court order has stopped the execution of the warrant and the order is revoked or reversed; and

19.

a court to reissue a warrant in certain circumstances.

Item 23 - Subsection 203M(4)

This item allows the same form of warrant that would be issued under section 203DA to be completed and signed by a judicial officer where an application for the warrant has been made by telephone or other electronic means.

Item 24 - Before section 203T

This item inserts into Subdivision G new section 203SA which sets out which goods that subdivision does not apply to. Subdivision G currently sets out the procedures for dealing with forfeited goods that have been seized. This item ensures that this subdivision will continue to deal with those types of goods. New Subdivision GA will apply to goods seized under a warrant under section 203DA, except for any special forfeited goods seized under paragraph 203DB(1)(d).

Item 25 - After Subdivision G of Division 1 of Part XII

This item inserts new Subdivision GA into Division 1 of Part XII of the Customs Act. Subdivision GA sets out how goods seized under a section 203DA warrant should be dealt with.

Section 209B provides that new Subdivision GA applies to goods seized under a seizure warrant issued under section 203DA, except goods seized under paragraph 203DB(1)(d). That paragraph allows an officer to seize other goods that are found during the search for goods the subject of a section 203DA warrant that the executing officer or person assisting believes on reasonable grounds to be special forfeited goods.

Section 209C provides that goods to which Subdivision GA applies which are seized must be taken to a place approved by a Collector as a place for the storage of goods of that kind.

Subsection 209D(1) provides that once these types of goods have been seized the officer who seized the goods must serve a seizure notice on the owner of the goods. This notice must be served within 7 days of seizure. If the owner cannot be identified after reasonable inquiry, the notice must be served on the person in whose possession or under whose control the goods were when they were seized.

Subsection 209D(2) makes it clear that the seizure notice must be given even if an application for the goods return has been made (see section 209F).

Subsection 209D(3) provides that the notice must be in writing and must be served personally or by post. If the owner or person in possession or in control of the goods cannot be identified, the notice must be published in a newspaper circulating in the location in which the goods were seized.

Subsection 209D(4) makes it clear that a seizure notice can be served on a person who is outside Australia. In the case of goods that were in transit through Australia, it is probable that the owner of the goods will not be in Australia.

Section 209E sets out those matters that must be dealt with in a seizure notice. The notice must identify the goods, set out the day on which they were seized, set out the ground (or grounds) on which they were seized and include a statement that, if an application for the return of the goods has not already been made, and is not made within 30 days after the day the notice is served, the goods will be taken to be condemned as forfeited to the Crown.

Subsection 209F(1) provides that the owner of the goods, whether or not a seizure notice has yet been served on the owner, may apply to a court for the return of the goods.

Under subsection 209F(2) that application must be made no later than 30 days after a seizure notice is issued. If the application is not made, the goods are taken to be condemned as forfeited to the Crown (see section 209G).

Under subsection 209F(3) the court must order the return of the goods to the owner if the court finds that:

20.

the goods were not goods that are connected with the carrying out of a terrorist act and are not goods that prejudice or are likely to prejudice, Australias defence or security or international peace and security;

21.

the goods were not used or otherwise involved in the commission of an offence against any law of the Commonwealth, a State or a Territory; and

22.

the person is the rightful owner of the goods.

Subsection 209F(4) makes it clear that the goods that are to be required to be returned must be returned in a condition as near as practicable to the condition in which they were seized.

Under subsection 209F(5) if the court does not order the return of the goods, the goods are condemned as forfeited to the Crown.

Section 209G provides that if a seizure notice has been served in respect of goods and no application for their return has been made (within the 30 day time limit) then the goods are condemned as forfeited to the Crown.

Subsection 209H(1) provides that if goods are condemned as forfeited to the Crown because the owner did not make an application for their return, a person may apply to a court for compensation. This is the case even if the goods have been destroyed or disposed of.

Subsection 209H(2) provides that compensation will only be payable if:

23.

the goods were not goods that are connected with the carrying out of a terrorist act and are not goods that prejudice or are likely to prejudice, Australias defence or security or international peace and security;

24.

the goods were not used or otherwise involved in the commission of an offence against any law of the Commonwealth, a State or a Territory; and

25.

the person establishes, to the satisfaction of the court that he or she is the rightful owner of the goods and there were circumstances providing a reasonable excuse for the failure to apply for the return of the goods within the relevant time limits.

Subsection 209H(3) provides that the amount of the compensation should be:

26.

if the goods have been sold - the proceeds of the sale

27.

if the goods have been destroyed or otherwise disposed of - the goods market value at the time of their destruction or disposal.

Section 209I makes it clear that the title to goods that are condemned as forfeited to the Crown vests immediately in the Commonwealth. This is to the exclusion of all other interests in the goods, and the title cannot be called into question.

Section 209J deals with the situation where goods that are seized are considered to constitute a danger to public health or safety. Usually goods seized under a section 203DA warrant cannot be disposed of until they are condemned as forfeited to the Crown. However, there may be circumstances where the goods constitute a danger to public health or safety, in which case they can be dealt with prior to condemnation.

Under subsection 209J(1) once the Chief Executive Officer of Customs or a Regional Director for a State or Territory is satisfied that the goods constitute a danger to public health or safety, they can cause the goods to be dealt with in such manner as he or she considers appropriate (including the destruction of the goods).

Subsection 209J(2) provides that if the goods are dealt with under that subsection, the CEO or Regional Director concerned must give or publish a notice in accordance with subsection (4). That notice must be given or published not later than 7 days after the goods have been dealt with.

Under subsection 209J(3) the notice must be in writing and must be served personally or by post on the owner of the goods, or if they cannot be identified, on the person in whose possession or under whose control the goods were when they were seized. If none of those persons can be identified, the notice must be published in a newspaper circulating in the location in which the goods were seized.

Subsection 209J(4) sets out those things that must be in the notice. The notice must:

28.

identify the goods;

29.

state that the goods have been seized under seizure warrant under section 203DA and give the reason for the seizure;

30.

state that the goods have been dealt with under subsection (1) and specify the manner in which they have been so dealt with and the reason for doing so; and

31.

set out that the owner may bring an action against the Commonwealth for recovery of the market value of the goods.

Subsection 209J(5) provides that if goods are dealt with in accordance with subsection (1), the owner may bring an action against the Commonwealth in a court of competent jurisdiction for the recovery of the market value of the goods at the time that they were dealt with.

Under subsection 209J(6) that right to recover the market value of the goods exists if:

32.

the goods were not goods that are connected with the carrying out of a terrorist act and are not goods that prejudice or are likely to prejudice, Australias defence or security or international peace and security;

33.

the goods were not used or otherwise involved in the commission of an offence against any law of the Commonwealth, a State or a Territory; and

34.

the owner establishes that the circumstances for them to be dealt with did not exist, that is, they did not constitute a danger to public health or safety.

Subsection 209J(7) provides that if a person establishes a right to recover the market value of the goods, the Court must order the payment by the Commonwealth of an amount equal to that value.

Section 209K deals with the disposal of seized goods that have been condemned as forfeited to the Crown. Under subsection (1) these goods must be dealt with and disposed of in accordance with the directions of the Chief Executive Officer of Customs.

Subsection 209K(2) makes it clear that the Chief Executive Officer of Customs may direct that the goods be given to a relevant authority of a foreign country in order that the goods be used in an investigation or prosecution under the laws of that country. For example, goods may have been illegally exported from the country of origin. In those circumstances the CEO could direct that the goods be given to the Customs authority in that country for the investigation of the offence in that country.

Subsection 209K(3) makes it clear that subsection (2) does not limit the generality of subsection (1).

Section 209L provides that for the purposes of section 29 of the Acts Interpretation Act 1901 a notice is taken to be properly addressed if it is posted as a letter addressed to the person at the last address of that person known to the sender. Section 29 of the Acts Interpretation Act 1901 provides that unless the contrary intention appears the service of a document shall be deemed to be effected by properly addressing, prepaying and posting the document as a letter. Section 209L sets out when a notice is taken to have been properly addressed.

Items 26 and 27

These items amend paragraph 229(1)(bb) of the Customs Act to ensure that if seized goods are sold (or otherwise disposed of) in accordance with section 209J or 209K subject to a condition and that condition is not complied with, the goods will become forfeited to Crown.

Part 2 - Amendments commencing second

Many of the provisions of the Customs Act, including section 64AB, will be repealed and replaced by the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act). The amendments in this part will ensure that the amendments intended to be made to the Customs Act that are set out in Part 1 of this Schedule are not removed from the Act when the ITM Act commences. All references to new provisions are references to those provisions of the Customs Act as contained in the ITM Act.

Customs Act 1901

Item 28 - Subsection 4(1) (definition of cargo report)

This item amends the definition of cargo report that will be inserted into the Customs Act by the ITM Act to ensure that it also covers those goods that are intended to be kept on board a ship at a port or on an aircraft at an airport.

Item 29 - After subsection 64AB(2)

This item inserts into new section 64AB of the Customs Act new subsection 64AB(2A). New subsection 64AB(2A) provides that if a ship or aircraft is due to arrive at its first port, or airport, in Australia since it last called at a port, or departed from an airport, outside Australia, each cargo reporter must report to Customs particulars of all goods that the cargo reporter has arranged to be carried on the ship or aircraft on the voyage or flight and that are intended to be kept on board the ship or aircraft for shipment on to a place outside Australia. This requirement does not apply to goods that are accompanied personal or household effects of a passenger or member of the crew or to ships stores or aircrafts stores.

New subsection 64AB(2A) ensures that the requirement to report cargo that is in transit through Australia still has to be reported once the ITM Act commences.

Item 30 - Paragraph 64AB(5)(a)

New paragraphs 64AB(5)(a) and (b) set out who are the consignee or consignor of goods for the purposes of making a cargo report.

Since the definition of consignor in paragraph 64AB(5)(a) refers to a person in Australia, the definition is not relevant to goods that are in transit through Australia.

This item amends paragraph 64AB(5)(a) to limit its operation to reports of goods intended to be unloaded in Australia.

Item 31 - After paragraph 64AB(5)(a)

This item inserts new paragraph 64AB(5)(aa) into the Customs Act. New paragraph 64AB(5)(aa) sets out who is the consignor in respect of goods that are in transit through Australia. This is the supplier of such goods located outside Australia who:

1.

initiates the sending of goods to a person in a place outside Australia; or

2.

complies with a request from a person in a place outside Australia to send goods to the person.

Item 32 - Paragraph 64AB(5)(b)

This item amends new paragraph 64AB(5)(b) to make it clear that the definition of consignee applies to both goods intended to be unloaded in Australia and goods intended to be kept on board a ship or aircraft whilst it is in Australia. The definition does not otherwise need to be amended