Mr TRUSS (Customs and Consumer Affairs) (1:06 PM) —I move:

(1) Schedule 1, item 7, page 4 (lines 4 to 6), omit the item, substitute:

7 Subsection 2(2)

Omit "subsections (3) and (4)", substitute "subsection (3)".

7A Subsection 2(4)

Repeal the subsection.

7B Item 12 of Schedule 1

Repeal the item.

This amendment to the Customs and Excise Legislation Amendment Bill (No. 3) 1997 addresses the issue raised quite eloquently by the member for Curtin ((Mr Rocher). The purpose of the amendment is to remove the proposed reduction in the entry threshold for goods imported through the post. This will have the effect of leaving the postal entry threshold at $1,000.

Originally, the entry threshold of $1,000 for goods imported by the post was to be reduced to $250, to align with the threshold applying to air and sea cargo, as a part of the customs cost recovery regime. This amendment was originally to take effect from 1 April 1998, to allow importers through the post more time to adjust to the impact of change.

During 1997, a significant number of representations from small business prompted a review of entry thresholds across air, sea and postal importations. The review has been focusing on options to simplify the entry procedures, to lessen the burden of customs requirements on small business once the threshold is reduced and goods become subject to entry requirements.

As part of this review, Customs also proposed a further deferral of the commencement of the reduced postal threshold to 1 October 1998. This proposed amendment is contained in item 7 of schedule 1 of this bill, the item referred to by the member for Curtin.

The Joint Committee of Public Accounts and Audit is presently conducting an inquiry into Internet commerce. In light of the reporting time frame of the JCPAA, it is the government's view that we should not proceed with any proposed changes to existing entry thresholds until the government has had sufficient time to consider the committee's findings on this issue. The committee is examining entry issues in the wider context as an integral element of the electronic commerce issues.

Instead of deferring the commencement of the postal threshold reduction, it is proposed to remove the original amendment altogether so that the current $1,000 entry threshold will continue. The government will examine the recommendations of the JCPAA report when they become available. I commend the amendment to honourable members, and present a supplementary explanatory memorandum.

Amendment agreed to.

Bill, as amended, agreed to.

Mr DEPUTY SPEAKER (Mr Nehl) —The bill has been agreed to with an amendment. The question now is that the bill be reported to the House with an amendment.

Question resolved in the affirmative.

Main Committee adjourned at 1.09 p.m.