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Import Processing Charges (Amendment and Repeal) Bill 2002

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2002

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

SENATE

 

 

 

 

 

IMPORT PROCESSING CHARGES (AMENDMENT AND REPEAL) BILL  2002

 

 

 

 

 

 

REPLACEMENT EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

THIS MEMORANDUM REPLACES THE EXPLANATORY MEMORANDUM

PRESENTED TO THE HOUSE OF REPRESENTATIVES

ON 19 JUNE 2002

 

 

 

 

 

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

Senator the Honourable Christopher Martin Ellison)

 

 

 

 



IMPORT PROCESSING CHARGES (AMENDMENT AND REPEAL) BILL 2002

 

OUTLINE

 

The purpose of this Bill is to continue the operation of the Import Processing Charges Act 1997 after it is repealed and to clarify the amount of self-assessed declaration charge that is payable in respect of reportable documents.

 

FINANCIAL IMPACT STATEMENT

 

This Bill has no financial impact.  Although the continued application of the Import Processing Charges Act 1997 will result in higher revenue collection than if the Import Processing Charges Act 2001 were in operation, the higher charges reflect the higher costs to Customs in continuing to operate the old IT systems until the trading community is ready to use the new Integrated Cargo System.

 

 

 



IMPORT PROCESSING CHARGES (AMENDMENT AND REPEAL) BILL 2002

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

This clause provides for the Act, when enacted, to be cited as the Import Processing Charges (Amendment and Repeal) Act 2002.

 

Clause 2 - Commencement

 

Subclause (1) provides that each provision of this Act specified in column 1 of the table in that subclause commences or is taken to have commenced on the day or at the time specified in column 2 of the table.

 

Item 1 of the table provides that sections 1 to 3 and anything in this Act not elsewhere covered by this table commence on the day on which this Act receives the Royal Assent.

 

Item 2 of the table provides that section 4 commences on the earlier of:

-                the commencement of section 5 of this Act; and

-                the commencement of section 6 of this Act.

 

Section 4 contains definitions for the purposes of sections 5 and 6 of the Act.  The definitions will commence when section 5 or 6 commences, whichever is the earlier.

 

Item 3 of the table provides that section 5 commences immediately after the commencement of item 62 of Schedule 3 to the Customs Legislation Amendment Act (No. 1) 2002 .  Section 5 continues the operation of the Import Processing Charges Act 1997 after it is repealed.

 

Item 4 of the table provides that section 6 commences at the same time as the commencement of item 1 of Schedule 4 to the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the Trade Modernisation Act) .  Section 6 continues the operation of the Import Processing Charges Act 1997 for the purposes of charging cargo report processing charge during the moratorium periods.  Item 1 of Schedule 4 to the Trade Modernisation Act commences on a day to be fixed by Proclamation and it has not commenced yet.  Under subsection 2(6) of the Trade Modernisation Act, if that item has not been Proclaimed to commence by 21 July 2003, it will commence on 21 July 2003.  However, the Customs Legislation Amendment Bill (No. 1) 2002 and this Bill propose to extend that time until 21 July 2004.  If these Bills are passed, it is not expected that item 1 of Schedule 4 to the Trade Modernisation Act will be Proclaimed to commence until sometime in 2004.

 

Item 5 of the table provides that section 7 commences on the earlier of:

-                the commencement of section 5 of this Act; and

-                the commencement of section 6 of this Act.

 

Section 7 imposes charges for the purposes of section 5 and 6 of this Act.

 

Item 6 of the table provides that Schedule 1 commences on the later of:

-                immediately after the Import Processing Charges Act 2001 commences; and

-                the day on which this Act receives the Royal Assent.

 

Schedule 1 amends the Import Processing Charges Act 2001 to clarify how much self-assessed clearance declaration charge is payable in respect of reportable documents.

 

Subclause (2) provides that column 3 of the table is for additional information that is not part of this Act.  This information may be included in any published version of this Act.

 

Clause 3 - Schedule(s)

 

This clause is the formal enabling provision for the Schedule to the Bill, providing that each Act specified in a Schedule is amended in accordance with the applicable items of the Schedule.  In this Bill the Import Processing Charges Act 2001 is being amended.

 

The clause also provides that the other items of the Schedules have effect according to their terms.  This is a standard enabling clause for transitional, savings and application items in amending legislation. 

 

Clause 4 - Definitions

 

This clause defines two terms “Charges Act” and “Repeal Act”.  Charges Act is defined to mean the Import Processing Charges Act 1997 (“the IPC Act 1997”) and Repeal Act is defined to mean the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (“the Trade Modernisation Act”).

 

Clause 5 - Continued application of Charges Act after its repeal

 

This clause continues the operation of the IPC Act 1997 in certain circumstances after it has been repealed.

 

The Trade Modernisation Act repeals the IPC Act 1997.  It was intended that the IPC Act 1997 would be repealed at the same time that the Trade Modernisation Act made substantial amendments to import reporting/entry processes (Parts 2 and 6 of the Trade Modernisation Act refer).  It was also intended that the repeal and the new processes would commence on a day to be fixed by Proclamation and if the provisions were not Proclaimed, they would commence automatically 2 years after the Trade Modernisation Act received the Royal Assent (being 21 July 2003).

 

Many provisions of the Trade Modernisation Act depend directly or indirectly on the introduction of Customs new cargo management computer system.  The 2 year proclamation period was to allow sufficient time for the trading community to be ready for the procedural and computer system changes.  Since the Trade Modernisation Act was enacted it has become apparent that industry would not be in a position to implement its computer system changes by July 2003.  The Customs Legislation Amendment Bill (No. 1) 2002 will extend the time in which those provisions can be Proclaimed to commence to 3 years to allow the trading community the extra time it would need to be ready (21 July 2004).

 

For Constitutional reasons it was not possible to amend the Trade Modernisation Act to extend the time in which the IPC Act 1997 can be repealed.  That is, the IPC Act 1997 will still be repealed 2 years after the Trade Modernisation Act received the Royal Assent, if Schedule 4 to the Trade Modernisation Act is not Proclaimed to commence earlier.

 

This causes a problem because the substantive provisions that make people liable to pay the charges set out in the IPC Act 1997 may continue to operate for another year after the IPC Act 1997 is repealed.

 

This item ensures that if the IPC Act 1997 is repealed (that is Schedule 4 to the Trade Modernisation Act has commenced) and at that time, not all of the import reporting/entry processes (that is Parts 2 and 6 of Schedule 3 to the Trade Modernisation Act) have commenced, then the IPC Act 1997 continues to apply as if it had not been repealed.  This application will continue to operate until all of the import reporting/entry processes amendments have commenced.

 

Clause 6 - Continued application of Charges Act during moratorium period

 

The IPC Act 1997 provides that cargo report processing charge is imposed and sets out the amount of that charge.  That charge is only payable in respect of documentary cargo reports (section 64ABB of the Customs Act).

 

Under new section 64AB as inserted by the Trade Modernisation Act, cargo reporters will be required to make electronic cargo reports.  However, new subsections 64AB(12) and (13) provide that during the six month period after the section commences (the general moratorium period) reports can be made by document.  Further, under subsections 64AB(12) and (14) documentary reports can be made during the further moratorium period (not being more than 18 months), if the CEO grants a cargo reporter such a period.

 

Since documentary cargo reports will only be able to be made for a maximum of 2 years after the commencement of new section 64AB, the Trade Modernisation Act also repeals section 64ABB.  Hence under the amendments that will be made by the Trade Modernisation Act cargo report processing charge will not be payable in respect of documentary cargo reports made during the general and further moratorium periods.

 

Item 67 of Schedule 3 to the Customs Legislation Amendment Bill (No. 1) 2002 provides that cargo report processing charge will still be payable during those moratorium periods.

 

Subclauses 6(1) and (2) make consequential amendments so that the IPC Act 1997 continues to apply, during those moratorium periods.

 

Subclause 6(3) makes it clear that sections 5 and 6 do not limit the effect of each other.

 

This clause will commence when the IPC Act 1997 is repealed.  That Act will be repealed by item 1 of Schedule 4 to the Trade Modernisation Act.  Under subsection 2(3) of the Trade Modernisation Act that item commences on a day to be fixed by Proclamation.  No such day has yet been fixed and hence item 1 has not commenced.  Under subsection 2(6) of the Trade Modernisation Act, if that item has not been Proclaimed to commence by 21 July 2003, it will commence on 21 July 2003.  However, the Customs Legislation Amendment Bill (No. 1) 2002 and this Bill propose to extend that time until 21 July 2004.  If these Bills are passed, it is not expected that item 1 of Schedule 4 to the Trade Modernisation Act will be Proclaimed to commence until sometime in 2004.

 

Clause 7 - Imposition of charges

 

This item imposes, to the extent necessary to give effect to sections 5 and 6 of this Bill, the charges of the kind mentioned in section 4 of the IPC Act 1997 are imposed.



Schedule 1 - Amendment of the Import Processing Charges Act 2001

 

Item 1 - Paragraph 5(2)(a)

 

Subsection 5(2) of the Import Processing Charges Act 2001 prescribes the charges for self-assessed clearance (“SAC”) declarations.   Self-assessed clearance declarations provide information to Customs about goods not requiring entry.  Each reportable document requires its own self-assessed clearance declaration.  The current wording of subparagraph 5(2)(a) provides for a ‘rolled-up’ charge for a self-assessed clearance declaration that is made by a cargo reporter in respect of twenty-one or more reportable documents.  This implies that a SAC declaration can be for more than one reportable document which is not the case.

 

This item makes it clear that the rolled-up charge is for twenty-one or more self-assessed clearance declarations in respect of reportable documents.