Senator ELLISON (Special Minister of State) (4:49 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—

IMPORT PROCESSING CHARGES AMENDMENT (WAREHOUSES) BILL 1999

This bill is the second in the package ensuring goods that enter into what is known as an MIB warehouse and are subsequently exported do not pay fees and charges otherwise payable to Customs for processing entries.

The bill imposes a charge for processing entries made for goods that move from an MIB warehouse into Australian commerce.

This means these goods have to pay the same fees and charges as goods imported into Australia through a general warehouse have to, as well as of course the relevant customs duty and sales tax ordinarily payable on imported goods.

However, goods exported from an MIB warehouse do not have to pay these charges.

Whilst keeping the maximum amount payable for processing various types of entries in the act itself, the amendments proposed in this bill will also allow the Regulations to make changes to Customs fees and costs structure so it can provide flexibility in meeting emerging industry requirements.

This flexibility will remove the rigidity in the current structure and enable cost recovery charges to be adapted more easily in the future to meet government initiatives and other changed circumstances.

The changes contained in the bill are to commence from 29 April 1999, the date the Government announced this initiative.

CUSTOMS AMENDMENT (WAREHOUSES) BILL 1999

In December 1997, the Government announced in the "Investment for Growth" industry statement that it proposed to introduce schemes designed to make Australia more attractive as a site for regional manufacturing and warehousing.

One such initiative announced in 1998 was a scheme to encourage manufacturing activities in bond called MIB warehouses.

However, up until now, operators of MIB warehouses were subject to import processing charges and fees that were introduced in 1997 to recover the costs incurred in processing what are known as "customs entries".

Currently, a charge applies to entries lodged to allow imported goods to be moved into, and, if goods go into Australian commerce, out of warehouses.

Industry has claimed that these charges and fees make the operation of MIB warehouses uneconomic, and serve as obstacles to attracting international manufacturing and investment to Australia.

The Government has responded to representations by industry and is addressing the problems through the amendments to the Customs Act proposed in this bill.

If goods are imported into MIB warehouses, and manufactured goods are exported, no customs duty, fees or charges would be paid on goods entering or leaving the MiB warehouse.

The changes contained in the bill are to commence from 29 April 1999, the date the Government announced this initiative.

Debate (on motion by Senator Quirke) adjourned.