Explanatory Memorandum
(Circulated by authority of the Minister for Immigration and Border Protection, the Hon. Peter Dutton MP)Schedule 3 - Amendments relating to import processing charges
Customs Act 1901
42. The purpose of Schedule 1 of the Bill is to amend section 71B of the Customs Act to give the Minister the ability to determine, by legislative instrument, that certain owners of goods or owners in respect of certain goods, or both, are exempt from liability to pay import declaration processing charge.
Item 1 - At the end of section 71B
43. This item adds new subsections (4), (5), (6) and (7) at the end of section 71B of the Customs Act.
44. Under section 71B, an owner of goods is liable to pay import declaration processing charge when an import declaration is, or is taken to be, communicated to the Department. Liability to pay import declaration processing charge does not arise when an import declaration is withdrawn before an authority to deal with the goods is issued.
45. Section 71B as currently drafted does not contain any mechanism by which an owner of goods can be exempt from liability to pay import declaration processing charge. As a result, Australia is unable to honour any international agreements that specifically exempt certain imports from payment of fees at the border.
46. The effect of new subsections 71B(4) and (5) of the Customs Act is that the Minister may determine, by legislative instrument that:
- •
- specified persons;
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- persons in respect of specified goods;
- •
- specified persons in respect of specified goods
are not liable to pay import declaration processing charge.
47. This legislative instrument will take effect on the day specified in the instrument which may be a day which is earlier or later than the day the instrument is made. This may, for example, mean that any exemption from liability to pay import declaration processing charge can be backdated to a particular day. These amendments will allow Australia to honour any international agreements that specifically exempt certain imports from payment of fees at the border.
48. The effect of new subsection 71B(6) of the Customs Act is that if a person pays import declaration processing charge in circumstances where they are exempt from doing so by the legislative instrument made under subsection 71B(4), the Comptroller-General of Customs must give the payer a refund equal to the amount of the charge paid.
49. The effect of new subsection 71B(7) of the Customs Act is to provide on the face of the Customs Act that an amount of import declaration processing charge that a person is liable to pay is a debt due by the person to the Commonwealth that may be recovered by action in a court of competent jurisdiction.
50. The provision means that the Commonwealth will not need to rely on the relevant provisions of the Public Governance, Performance and Accountability Act 2013 (the PGPA Act) and the Public Governance, Performance and Accountability Rule 2014 (the PGPA Rule) in seeking to recover any amount of import declaration processing charge that a person is obliged to pay as a debt to the Commonwealth.
Item 2 - At the end of section 71DI
51. This item adds new subsection (4) at the end of section 71DI of the Customs Act.
52. Under section 71DI of the Customs Act, a person is liable to pay warehouse declaration processing charge where a warehouse declaration is communicated, or taken to have been communicated, to the Department. Liability to pay warehouse declaration processing charge does not arise when the declaration is withdrawn before an authority to deal with the goods is issued.
53. Similar to the amendment made by item 1 to section 71B above in relation to import declaration processing charge, the effect of new subsection 71DI(4) is to provide on the face of the Customs Act that an unpaid amount of warehouse declaration processing charge that a person is liable to pay is a debt to the Commonwealth that may be recovered in a court of competent jurisdiction, so that the Commonwealth will not need to rely on the PGPA Act and the PGPA Rule in enforcing the debt.