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Import Processing Charges Amendment Bill 2005

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2004-2005

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

HOUSE OF REPRESENTATIVES

 

 

 

IMPORT PROCESSING CHARGES AMENDMENT BILL 2005

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

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

Senator the Honourable Christopher Martin Ellison)

 



IMPORT PROCESSING CHARGES AMENDMENT BILL 2005

OUTLINE

The purpose of this Bill is to amend the Import Processing Charges Act 2001 (the IPC Act) to restructure the import declaration processing charge and warehouse declaration processing charge.  This Bill is one of two in the legislative package to restructure the cost recovery regime for import related services.

The IPC Act introduces new cost recovery arrangements to support changes in the management and processing of cargo by the Australian Customs Service (Customs) implemented under the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act).  The amended IPC Act replaces the current cost recovery regime in the Import Processing Charges Act 1997 .

The new cost recovery arrangements proposed under this Bill give continuing effect to the Government’s decision to fully recover the cost of import processing by Customs.  The IPC Act and the ITM Act were enacted in 2001 but the charging provisions of these Acts have not commenced and are due to commence in the second half of 2005.

Under the IPC Act the charging structure for both import declaration and warehouse declaration processing charges is based on the value of the imported goods, irrespective of the method of importation.  This charging structure is different from the charges contained in the Import Processing Charges Act 1997 , which are based on the mode of importation of goods into Australia (sea, air or post). 

Since the enactment of the IPC Act, the importing environment has changed substantially as reflected by charge increases to recover the costs for increased quarantine inspection and container examination logistics.  Quarantine processing predominantly takes place in the air and post environments and container examination occurs predominantly in the sea environment.

The charging structure proposed by this Bill imposes charges based on the method of importation, either by sea, air or post without reference to the value of the imported goods.  This recognises the cost differences between each mode of importation.  The low value charges have been amalgamated into the charges on electronically lodged declarations, as declarations for low value items will be lodged almost exclusively through electronic means in the new cargo management environment.  The proposed charges for electronically lodged declarations are $49.50 for sea imports (currently $44) and $30.10 for air and post imports (currently $27.10).  The base charges for manually lodged declarations are to be the same as those currently charged under the Import Processing Charges Act 1997 , that is $65.75 for sea imports and $48.85 for air and post imports.

The new charges are set to allow full recovery of costs associated with import processing, increased quarantine inspection costs and Container Examination Facility logistics costs.  The import processing costs to be recovered include costs associated with compliance assurance.  The additional costs will be small in proportion to overall importing costs with the increase in charges for importations by sea equating to 0.1% of transport, insurance and brokers fees. The increase in charges for importations by air and post principally relates to the recovery of approximately $9.2 million that would be collected from the charges on low value consignments that are to be repealed.  Taking the amalgamation of the low value consignment charges with air and post charges into account, the proposed new charges generate an overall aggregate reduction of 4% in costs in the air and post import environments.

The importing industry agrees with the need to implement a charging structure that is simple and transparent and that does not cross-subsidise between different modes of importation .  Industry also supports the amalgamation of the current charges for low value items, which are being repealed by the Customs Legislation Amendment (Import Processing Charges) Bill 2005, into the import and warehouse declaration processing charges.

FINANCIAL IMPACT STATEMENT

It is projected that approximately 222,000 importers will generate 3.6 million customs import and warehouse declarations in the financial year 2005-06. More than 99% of these declarations are expected to be lodged electronically.  The new charges will collect an additional $12.4 million in 2005-06.



IMPORT PROCESSING CHARGES AMENDMENT BILL 2005

NOTES ON CLAUSES

Clause 1 - Short title

1.             This clause provides for the Bill, when enacted, to be cited as the Import Processing Charges Amendment Act 2005 .

Clause 2 - Commencement

1.             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.

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

3.             Item 2 of the table provides that Schedule 1 commences immediately after the commencement of sections 3 to 6 of the Import Processing Charges Act 2001 (the IPC Act).  The IPC Act will commence on the day fixed by Proclamation under subsection 2(3) of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act).  This day is expected to be in the second half of 2005. 

4.             Subclause (2) provides that Column 3 of the table contains additional information that is not part of the Act.

Clause 3 - Schedule(s)

5.             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 IPC Act is being amended.

6.             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. 



Schedule 1 - Amendments

Import Processing Charges Act 2001

Item 1 - Paragraphs 5(3)(a) and (b)

7.             This item repeals paragraphs 5(3)(a) and (b) of the IPC Act and substitutes new paragraphs 5(3)(a) to (f).  The new paragraphs set out the new amounts of import declaration processing charge for an electronic and a documentary import declaration that relates to goods to which section 68 of the Customs Act 1901 (the Customs Act) applies i.e. imported goods that are intended to be entered for home consumption.

8.             Paragraph 5(3)(a) provides that for an electronic import declaration that relates to goods imported into Australia by air (other than goods imported through the post), the amount of import declaration processing charge is $30.10 or such other amount (not exceeding $45.00 as is prescribed).

9.             Paragraph 5(3)(b) provides that for a documentary import declaration that relates to goods imported into Australia by air (other than goods imported through the post), the amount of import declaration processing charge is $48.85 or such other amount (not exceeding $73.30 as is prescribed).

10.           Paragraph 5(3)(c) provides that for an electronic import declaration that relates to goods imported into Australia through the post, the amount of import declaration processing charge is $30.10 or such other amount (not exceeding $45.00 as is prescribed).

11.           Paragraph 5(3)(d) provides that for a documentary import declaration that relates to goods imported into Australia through the post, the amount of import declaration processing charge is $48.85 or such other amount (not exceeding $73.30 as is prescribed).

12.           Paragraph 5(3)(e) provides that for an electronic import declaration that relates to goods imported into Australia by sea (other than goods imported through the post), the amount of import declaration processing charge is $49.50 or such other amount (not exceeding $74.00 as is prescribed).

13.           Paragraph 5(3)(f) provides that for a documentary import declaration that relates to goods imported into Australia by sea (other than goods imported through the post), the amount of import declaration processing charge is $65.75 or such other amount (not exceeding $98.60 as is prescribed).

Item 2 - Paragraphs 5(6)(a) and (b)

14.           This item repeals paragraphs 5(6)(a) and (b) of the IPC Act and substitutes new paragraphs 5(6)(a) to (f).  The new paragraphs set out the new amounts of warehouse declaration processing charge for an electronic and a documentary warehouse declaration that relates to goods to which section 68 of the Customs Act 1901 (the Customs Act) applies i.e. imported goods that are intended to be entered for warehousing.

15.           Paragraph 5(6)(a) provides that for an electronic warehouse declaration that relates to goods imported into Australia by air (other than goods imported through the post), the amount of warehouse declaration processing charge is $30.10 or such other amount (not exceeding $45.00 as is prescribed).

16.           Paragraph 5(6)(b) provides that for a documentary warehouse declaration that relates to goods imported into Australia by air (other than goods imported through the post), the amount of warehouse declaration processing charge is $48.85 or such other amount (not exceeding $73.30 as is prescribed).

17.           Paragraph 5(6)(c) provides that for an electronic warehouse declaration that relates to goods imported into Australia through the post, the amount of warehouse declaration processing charge is $30.10 or such other amount (not exceeding $45.00 as is prescribed).

18.           Paragraph 5(6)(d) provides that for a documentary warehouse declaration that relates to goods imported into Australia through the post, the amount of warehouse declaration processing charge is $48.85 or such other amount (not exceeding $73.30 as is prescribed).

19.           Paragraph 5(6)(e) provides that for an electronic warehouse declaration that relates to goods imported into Australia by sea (other than goods imported through the post), the amount of warehouse declaration processing charge is $49.50 or such other amount (not exceeding $74.00 as is prescribed).

20.           Paragraph 5(6)(f) provides that for a documentary warehouse declaration that relates to goods imported into Australia by sea (other than goods imported through the post), the amount of warehouse declaration processing charge is $65.75 or such other amount (not exceeding $98.60 as is prescribed).