EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 82 

Issued by the Authority of the Minister for Justice and Customs

Import Processing Charges Act 2001

Import Processing Charges Regulations 2006

 

Section 6 of the Import Processing Charges Act 2001 (the Act) provides that the Governor-General may make regulations for the purposes of section 5 of the Act. Section 5 sets out the amounts of fourteen import processing charges and allows those amounts to be changed by regulation, up to specified maximum amounts.

 

The purpose of the Regulations is to increase the amounts of six of the import processing charges.

 

Subparagraph 68(1)(f)(iii) of the Customs Act 1901 (the Customs Act) exempts goods imported otherwise than by post that have a value not exceeding $250, or such other amount as is prescribed, from the requirement that they be entered for home consumption or warehousing. 

 

Imported goods are subject to Customs control until released into “home consumption”. An import declaration is used to clear goods from Customs control. A warehouse declaration is a document lodged with Customs to enter imported goods into a licensed warehouse. The duty payable on imported goods can be deferred by storing them in licensed warehouses until they are ready to be entered into home consumption or exported.

 

On 8 October 2005, $1,000 was prescribed for the purposes of subparagraph 68(1)(f)(iii) of the Customs Act.  One result of this change is that the number of import declarations and warehouse declarations is expected to decrease over current and forward years, and hence the amount of import processing charges collected is also expected to decrease.  Consequently, the increases in charges are to address the projected revenue shortfall and restore full cost recovery in accordance with the Australian Government Cost Recovery Guidelines:

 

•       the charge for an electronic import or warehouse declaration that relates to goods imported into Australia by air or post increases from $30.10 to $40.20 (the maximum allowed is $45.00); and

 

•       the charge for an electronic import or warehouse declaration that relates to goods imported into Australia by sea (other than goods imported through the post) increases from $49.50 to $50.00 (the maximum allowed is $74.00).

 

The Regulations commence on 10 May 2006.

 

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