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Customs Depot Licensing Charges Amendment Bill 2001

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1998-1999-2000

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

CUSTOMS DEPOT LICENSING CHARGES AMENDMENT BILL 2000

 

 

 

 

 



EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Justice and Customs,

Senator the Hon Amanda Vanstone)



CUSTOMS DEPOT LICENSING CHARGES AMENDMENT BILL 2000

 

OUTLINE

 

The purpose of this Bill is to amend the Customs Depot Licensing Charges Act 1997 to:

 

•            increase the number of transactions that will be required before the higher rate of depot licensing charge will be payable; and

•            set out the amount of depot licence variation charge.

 

FINANCIAL IMPACT STATEMENT

 

The combined result of the amendments proposed in this Bill, the Import Processing Charges Bill 2000 and the Customs Legislation Amendment and Repeal (International Trade Modernisation) Bill 2000, is that there is an anticipated decrease in costs for Customs of approximately $3.0m in the first year of full operation (noting that the amendments will commence over time as the systems developments necessary for them to operate come on line).  That continues to some extent for the next two years where the anticipated savings for Customs is estimated at $2.56m and $1.92m respectively.  Combining this with the anticipation of full cost recovery, the results of the cargo management reforms will significantly benefit Government.



NOTES ON INDIVIDUAL CLAUSES

 

Clause 1     Short Title

 

This clause provides for the Act to be cited as the Customs Depot Licensing Charges Amendment Act 2000 (the Act).

 

Clause 2     Commencement

 

Subclause 2(1) provides that sections 1, 2 and 3 of the Act commences on the day on which the Act receives Royal Assent.

 

Subclause 2(2) provides that schedule 1of the Act commences on the day on which item 146 in Schedule 3 to the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2000 commences.

 

Clause 3     Schedule(s)

 

This clause is the formal enabling provision for the Schedule to the Act, providing that each Act that is specified in a Schedule to this Act is amended as indicated.

 

The clause also provides that any other item in a Schedule has effect according to its terms.  This is a standard enabling clause for transitional, savings and application items in amending legislation.



SCHEDULE 1 - CUSTOMS DEPOT LICENCE CHARGES

 

Increase in number of transactions

 

Paragraphs 6(2)(b) and (c) of the Customs Depot Licensing Charges Act 1997 (the Customs Depot Licensing Charges Act) provides that the annual rate of depot licence charge is for a depot that was licensed during the whole of the year (the reference year) ending on 31 March preceding the commencement of the financial year for which the renewal is sought :

•            if the depot handled not less than 100 transactions in the reference year - $4,000, or, if another amount not exceeding $6,000 is prescribed, that other amount; or

•            if the depot handled less than 100 transactions in the reference year - $1,500, or, if another amount not exceeding $2,250 is prescribed, that other amount.

 

These two tiers of charges depend on the number of transactions handled by the depot in the previous year.

 

The Bill proposes to increase the number of transactions from 100 to 300 (item 3).  This will mean that depots that handle between 100 and 300 transactions will be able to pay the lower rate of depot licensing charge when their licence is renewed.

 

Item 6 of the Bill is an application provision which provides that the amendment made by item 3 of the Bill applies to the reference year ending on 31 March 2001 and all following reference years.

 

Depot licence variation charge

 

New section 77LA of the Customs Act 1901 (the Customs Act) (as contained in the Customs Legislation Amendment and Repeal (International Trade Modernisation) Bill 2000) provides the CEO may vary a depot licence by:

omitting the description of a place that is currently described in the licence and substituting a new description; or

altering the description of a place that is currently described in the licence (item 131 of the Bill).

 

New subsection 77LA(2) in part provides that an application for a variation of a depot licence must be accompanied by a depot licence variation charge.

 

Items 1 and 2 of the Bill define ‘depot licence variation charge’ to mean the depot licence variation charge payable as set out in section 77LA of the Customs Act and provide that depot licence variation charge payable as set out in section 77LA is imposed.

 

Item 4 of the Bill inserts a new section 6A into the Customs Depot Licensing Charges Act.

 

New section 6A provides that the amount of depot licence variation charge payable by an applicant for the variation of a depot licence is $300 or, if another amount, not exceeding $450, is prescribed, that other amount.

 

Item 5 of the Bill amends section 7 of the Customs Depot Licence Charges Act to allow the Governor-General to make regulations for the purposes of new section 6A.