2002-03

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

CUSTOMS LEGISLATION AMENDMENT BILL (NO. 2) 2003

SUPPLEMENTARY EXPLANATORY MEMORANDUM
(Amendments to be moved on behalf of the Government)

(Circulated by authority of the
Minister for Justice and Customs, 
Senator the Honourable Christopher Martin Ellison)

CUSTOMS LEGISLATION AMENDMENT BILL (NO. 2) 2003

OUTLINE

The purpose of the amendments is to amend the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 (the ITM Act) to extend the maximum time for its commencement for up to another year.

Amendments to the Customs Act 1901 (the Customs Act) made by the ITM Act will underpin the new Cargo Management Re-Engineering project (CMR project) being undertaken by Customs.  CMR involves the development of complex new computerised information systems, the main components of which are known as the Integrated Cargo System (ICS) and the Customs Connect Facility (CCF).  Customs and industry will require the systems to be fully operational to support the amendments to the Customs Act once they commence. 

Currently, the amendments to the Customs Act relating to the CMR project are expressed to commence upon Proclamation or, if the Proclamation does not occur within the period of 3 years beginning on the day on which the ITM Act received the Royal Assent, on the first day after the end of that period i.e. 20 July 2004.  It was originally considered that the 3 year period was sufficient time to allow not only for the development of the ICS and CCF by Customs, but also for the development, testing and deployment by industry of business systems compatible with them for communicating with Customs.  However, it has become apparent that this time frame will place pressure on the trading community’s ability to adjust, particularly to the new import components of the system, which could in turn significantly disrupt trade.

It is therefore proposed as a contingency measure to extend the period to 4 years beginning on the day on which the ITM Act received the Royal Assent.  While this extension of time will allow an extra year for development and testing of the ICS, it is expected that the ICS will be operational well before the end of the period. 

FINANCIAL IMPACT STATEMENT

The amendments are expected to have an insignificant financial impact.

CUSTOMS LEGISLATION AMENDMENT BILL (NO. 2) 2003

NOTES ON AMENDMENTS

Amendment (1)

This amendment will amend the commencement provisions set out in clause 2 of the Customs Legislation Amendment Bill (No. 2) 2003 by inserting a reference to new Part 5A of Schedule 1 to the Bill.  New Part 5A will commence on the day on which the Act receives the Royal Assent.

Amendment (2)

This item amends Schedule 1 to the Customs Legislation Amendment Bill (No. 2) 2003 by inserting new Part 5A.

New Part 5A will amend subsection 2(7) of the ITM Act by omitting the reference to 3 years and substituting “4 years”.  Subsection 2(7) of the ITM Act contains the default commencement provision for the amendments to the Customs Act that will underpin the new CMR project being undertaken by the Customs.  The amendment will mean that the period within which these amendments can commence is up to 4 years after the ITM Act received the Royal Assent, instead of 3 years, which will allow necessary extra time for the development and testing of the applicable information systems.