Calm before the storm - Customs Amendment Bill - Brief Article

Business Asia, May, 2001 by Nadia Cameron

Another key modification brought about by the new cargo management structure will be the increased versatility of checking procedures for different types of businesses. Instead of a "one size fits all" treatment of clients, the new process, known as the Accredited Client Program, will tailor arrangements for low-risk exporters/ importers and streamline reporting requirements to suit the needs of the individual client.

Clients who are accredited will have access to individual case managers, be able to provide periodic rather than individual declaration for their goods, and will have their goods cleared with minimum intervention. To be eligible, applicants must communicate electronically with Customs, show a history over a given period of time of accurate and timely information, and show a record of compliance with permit issuing agencies. Applicants also need to provide Customs with an audited report prepared by an independent auditor.

However, industry representatives are not convinced that the proposed CMR procedures will benefit their businesses. Australian Federation of International Freight Forwarders (AFIF) chairman Peter McNamara says of greatest concern were the new clearance procedures for exported goods. Under the new amendments, he says, exports will have to be cleared in the same way as imports, bringing forward fresh concerns about sanctions for late reports and incorrect statements within the paperwork.

"There are penalties for non-compliance with the new reporting standards. These penalties, which could be for inaccurate or late reporting, could be quite substantial," McNamara said.

Currently, inflexible penalties are incurred on a limited range of offences. The new CMR procedures will replace these with a three-tiered approach to penalties and offences through all stages of the export process.

"At present, there are no provisions for applying penalties for reporting cargo out of time or where reports are incomplete," Customs' Stonebridge said. "Poor reporting can lead to cargo delays and costs to industry."

Because of its diversity, the new penalty system, she says, could actually reduce the amounts currently paid by freight forwarders for false or misleading information.

"The new penalty system will significantly reduce the penalties applying to false or misleading information leading to revenue shortfalls," Stonebridge said.

Although there have been concerns about the sanctions listed under the new legislation, predicaments where they will be necessary are distant and extreme, Stonebridge said.

"Applying penalties will be a last resort approach to compliance, as it is under existing requirements. The industry will have a six-month moratorium before penalties are applied for late cargo reports," she added.

Concerns about the effect of CMR upon the relationships between Australia and its international trading partners are also at the forefront of most freight forwarder's minds. Stonebridge says that these fears are unfounded, and that CMR will have no effect upon countries that export to Australia.