Customs cargo reporting compliance
The Customs Act imposes a range of reporting obligations on importers and exporters under the Integrated Cargo System. In many cases, a breach of these obligations gives rise to a strict liability offence. Under the Infringement Notice Scheme (INS), Customs can issue infringement notices (and recover prescribed penalties) for many of these offences as an alternative to prosecution through the courts.
Businesses involved in importing/exporting goods are most likely to be affected by the INS. They should:
· be aware that they carry the risk of penalties under the INS in relation to some strict liability offences, even though a customs broker is used to meet Customs reporting requirements (e.g. the making of a false or misleading statement in respect of goods leading to a loss of duty)
· consider taking steps to review their level of customs compliance (e.g. conduct a prudential audit).
Customs’ approach to managing cargo reporting compliance, along with details of its administration of the INS, was recently outlined in Australian Customs Notice ACN 2006/17. As an interesting footnote, ACN 2006/17 was initially issued for public comment as a draft. This is the first time an ACN has been issued in draft and perhaps reflects a more consultative approach to customs administration under new Customs’ CEO, the former Commissioner of Taxation, Michael Carmody. At the same time, it is expected that he will quickly start transforming Customs internally, to improve significantly the accountability, efficiency and effectiveness of its compliance management and revenue collection activities. Customs' compliance resources had been increased significantly just prior to Mr Carmody's appointment and, under his direction, the organisation can be expected to pursue its compliance objectives much more actively.
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Page Last Updated: 09 May 2006
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Source: Deloitte Touche Tohmatsu - Australia (English)
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