Output 1 - Facilitation of the legitimate movement of goods across the border, while intercepting prohibited and restricted imports and exports
Framework
Changes to legislation
Commercial quantities
The Customs Amendment Act 2004 (No.133, 2004) amended Schedule VI of the Customs Act 1901 (the Customs Act) to ensure that a commercial quantity is prescribed for all narcotic substances. This means that life imprisonment penalties are available for offences against section 233B of the Customs Act where a commercial quantity of the prescribed drug is involved. Before this legislative change, life imprisonment sentences were only available for drugs that had commercial quantities specifically prescribed. The new penalties apply to all offences committed on or after 10 December 2004.
Serious drug offences
The Law and Justice Legislation Amendment (Serious Drug Offences and Other Measures) Bill was tabled in Parliament on 26 May 2005. The purpose of the Serious Drug Offences Bill includes consolidating all Federal drug offences in one place, and increasing the uniformity of drug offences across states and territories of Australia. The new offences are based on the Model Criminal Code Officers Committee Report on Serious Drug Offences (Chapter 6) –published in October 1998. Customs provided extensive input into the development of the Serious Drug Offences Bill.
Prohibited Imports Regulations amendments
In 2004–05, amendments to the Customs (Prohibited Imports) Regulations 1956 and the Customs (Prohibited Exports) Regulations 1958 included:
- revised regulatory and legislative controls on the import and export of child pornography and child abuse material to reflect the change in age from 16 to 18 years embodied in the Crimes Legislation Amendment (Telecommunications Offences and Other Measures) Act 2004
- revised arrangements for the import and export of industrial and agricultural chemicals in line with the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade
- changes to controls on the import of un-manufactured tobacco leaf
- a Disallowance Motion overturning a regulation which allowed the importation of breeds of dangerous dogs for certain scientific purposes. From 30 November 2004, the proposed permission-based regulations reverted to the former absolute prohibition on the import of dangerous dog breeds.
Protection of indicia and images – 2006 Commonwealth Games
To prepare for the Melbourne 2006 Commonwealth Games, Customs is working with the Department of Communication, Information Technology and the Arts (DCITA), Intellectual Property Australia, the Department of the Prime Minister and Cabinet (PM&C), the Attorney General’s Department and the Melbourne 2006 Commonwealth Games Corporation. New legislation enacted on 26 June 2005 is designed to prevent the unauthorised commercial use of certain indicia and images associated with the Melbourne 2006 Commonwealth Games.
The legislation will provide a more secure environment for the Melbourne 2006 Commonwealth Games Corporation to raise revenue through sponsorship and can prevent ambush marketing. The Melbourne 2006 Commonwealth Games (Indicia and Images) Protection Act 2005, in force until 30 June 2006, is additional to current legislative controls (Copyright Act 1968, Designs Act 1906, Trade Marks Act 1995 and the Trade Practices Act 1974).
Ammonium nitrate
On 25 June 2004, the Council of Australian Governments (COAG) agreed to a national approach for the regulation of the use, transport and storage of security sensitive ammonium nitrate (SSAN). This is a counter terrorism measure adopted by COAG so that only specially licensed users who can demonstrate a legitimate need and will apply safe and secure storage and handling procedures will have access to SSAN.
State and Territory regulatory agencies will issue licences to appropriately authorised users and handlers of SSAN.
Amendments to the Customs (Prohibited Imports) Regulations 1956 and the Customs (Prohibited Exports) Regulations 1958 will enter into force in July 2005. The new regulations give Customs the authority to withhold unlicensed imports and exports of SSAN. Customs cooperated with PM&C throughout the development of the controls, and will report to the State and Territory regulatory agencies on all imports and exports of SSAN.
Australian Sports Commission Amendment Act 2005
Suspected prohibited activities and doping allegations made against elite Australian athletes in the 2004 Olympics resulted in Customs activity. Customs completed checks on over 850 team members in three days. The checks completed were complex and involved research into Customs data holdings across Australia.
A number of process and legislative framework issues were identified to assist sports bodies to investigate doping in sport. Customs consulted with DCITA during the development of amendments to the Australian Sports Commission Act 1989.
The Australian Sports Commission Amendment Act 2005 allows the Australian Sports Commission Executive Director to authorise the disclosure of Customs information. Customs information covers the importation or attempted illegal importation of performance and image enhancing drugs (PIEDs), uncovered either by postal intercepts or discovery on a person at the border.
The amendments enhance Australia’s existing anti-doping framework and affirm Australia’s commitment to achieving a sports environment free from prohibited substances.
Improved licensing processes
Premises used to handle and store cargo are subject to Customs control, and conditions apply to their operation. Goods may be stored until the owner enters the goods into home consumption and meets any revenue liability, or exports the goods.
Customs licences a total of 360 depots and 425 warehouses. These figures include 24 new depots and 30 new warehouses licensed during 2004–05. Licences are renewed annually. In some cases supplementary information was obtained from the applicants where insufficient details were provided.
In May 2005, Customs implemented a new computer system, the Licensing Module, to replace the Licensing and Permissions System of the 1990s.
The Licensing Module allows for:
- better management of the licensing process
- improved information to support regional compliance
- interface with the Integrated Cargo System to identify licensed brokers and premises
- support for the electronic reporting of goods and their movement
- interface with financial systems for improved reporting.
National Customs Brokers Licensing Advisory Committee
Customs brokers are licensed to act as agents for owners importing or exporting goods.
The National Customs Brokers Licensing Advisory Committee (NCBLAC) advises the CEO on licensing customs brokers issues. NCBLAC is composed of one member nominated by an organisation representing brokers, one Commonwealth member nominated by Customs CEO and an independent Chair.
In 2004–05, NCBLAC made recommendations to the CEO about a new course of study for brokers. In this period NCBLAC also considered 100 licence applications and held 11 hearings.
Weapons and strategic goods
Customs continues to administer the certification of firearm dealers for newly imported handguns. Customs imposes limits on the number of newly imported handguns that a certified dealer may hold. Where a dealer imports handguns in excess of the specified limit, the imports are stored by Customs on the dealer’s behalf. At 30 June 2005, there were 338 gun dealers certified by Customs to hold newly imported handguns. Of these, the majority (over 90 per cent) are certified to hold an amount of no more than ten.
During 2004-05 the number of legitimate commercial importations was 38 786 firearms (including 22 348 rifles, 8466 handguns, 6973 shotguns, 915 military firearms and 84 antique firearms). Commercial exports comprised 8454 firearms (including 2020 rifles, 5430 handguns, 511 shotguns, 69 military rifles, and 424 antique firearms). In the same period, Customs detected and seized 1033 prohibited or undocumented firearms and parts and 6235 air guns.1
Customs also controls the import and export of other types of weapons. These include weapons such as blades, blowguns, crossbows, knuckle dusters and slings as well as items intended for use in warfare (such as large-calibre cannons and incendiary devices). Importation of these weapons is restricted under Schedule 2 and 3 of the Customs (Prohibited Imports) Regulations 1956.
In 2004–05, Customs processed 1004 applications for permission to import Schedule 2 and 3 weapons. This represents an increase of approximately 10 per cent when compared with the period 2003–04. Of the 1004 applications, 964 were approved. The remaining 40 applications were either refusals or applications that, on examination, related to goods that were not restricted.
Customs works cooperatively with other Commonwealth and state/territory agencies. The officials-level Firearms Policy Working Group is able to promote national consistency of controls on firearms and other weapons and changes to the controls on crossbows. Customs also contributes to the Australasian Police Ministers’ Council process on a range of firearms and weapons related issues.
1 These figures include the seizure of firearms (and parts) and weapons shown in Figure 7.