Senator IAN CAMPBELL (3:59 PM) —I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard .

Leave granted.

The speeches read as follows—

CUSTOMS AMENDMENT BILL (NO.2) 1999

This bill proposes to amend the Customs Act 1901 by introducing a new reporting scheme for high volume low value cargo arriving in Australia.

All cargo arriving in Australia is required to be reported under the Customs Act.

It is basic to Customs' ability to fulfil its border protection responsibilities that people transporting cargo to Australia report to Customs the details of the cargo intended to be discharged here.

Customs is then able to screen the cargo report to protect the Australian community from the importation of illicit drugs and prohibited goods.

This bill deals with a particular type of cargo, which is referred to as high volume low value cargo.

It covers bulk consignments of documents and consolidated mail orders which are valued at less than $250 per consignment and which are transported to Australia by specialist operators such as express couriers.

This sector of the transport industry has grown dramatically, with some 120,000 consignments arriving each week at Sydney Airport alone.

The current reporting provisions do not work effectively for high volume low value consignments simply because of the large volume of such consignments entering the country.

This results in many of these consignments not being properly reported.

Consequently, Customs has not been able to screen the consignments as effectively as it would like, despite the fact that these types of consignments are known to harbour illicit drugs.

The High Volume Low Value Reporting Scheme proposed by this bill would enable high volume low value consignments to be properly reported.

The Scheme will utilise electronic technology to enable the people reporting such consignments to provide Customs with access to their internal electronic data bases so that Customs may electronically screen the details of each consignment.

To perform this screening task, Customs is currently developing the Advanced Cargo Profiling System.

The System is being developed at a cost of $2.8 million under the Government's National Illicit Drug Strategy.

This bill proposes to make the Scheme available to all people reporting such consignments whether they arrive by air or sea.

This bill will, therefore, enable Customs to perform its screening responsibilities more effectively.

At the same time, this bill will provide arrangements for industry to more efficiently and properly report high volume low value cargo.

The Senate should note that further changes to the reporting arrangements will be necessary in the future as Customs updates its processing requirements as part of the continuing streamlining and reform of international trade.

IMPORT PROCESSING CHARGES AMENDMENT BILL 1999

This bill proposes to amend the Import Processing Charges Act 1997, by introducing a new screening charge in relation to cargo reported under the High Volume Low Value Reporting Scheme outlined in Customs Amendment Bill (No.2) 1999.

The screening charge was introduced in 1997 as a cost recovery measure and is charged on each air cargo consignment valued at less than $250.

Such a consignment must be reported to Customs, although it does not require a Customs entry.

This bill proposes to introduce a reduced screening charge for people who are eligible to join the High Volume Low Value Reporting Scheme.

At present, people reporting high volume low value consignments pay $2.40 for each consignment.

However, under the Scheme, such people will pay an amount of $45 for each bulk consignment which has been put together by the people transporting the consignments to Australia.

This option is available for two types of consignments.

Documents, such as courier mail, legal documents and intra company correspondence is one type.

The other is mail order consignments.

In both types, the people reporting the cargo are to ensure that each consignment does not exceed $250 in value and that the Customs duty and sales tax payable does not exceed $50.

Because of these restrictions, such consignments will pose a low revenue risk to Customs.

Therefore, Customs will not have to devote the same amount of resources to screening these consignments compared to consignments reported outside the Scheme.

These savings in resources are reflected in the difference between the bulk consignment screening charge and the individual consignment screening charge.

Ordered that further consideration of the second reading of these bills be adjourned till the first day of sitting in the winter sittings 1999, in accordance with standing order 111.