Australia – DIBP opens consultation on customs licensing arrangements

On 26 October 2015, the Department of Immigration and Border Protection (DIBP) Notice No. 2015/35 (26 October 2015) announced that DIBP is undertaking a comprehensive review of all licensing regimes under the Customs Act 1901 (Customs Act).  The Review of customs licensing regimes discussion paper provides further details on how to provide a submission, and covers a range of issues on which DIBP seeks information and feedback. The objectives of the review are to:

• review the role played by licensing in today’s border management environment, and consider whether there are other, more efficient, ways to achieve the same objectives for border management
• assess the efficiency and effectiveness of the current licensing regimes
• assess the regulatory burden of the current licensing regimes and identify opportunities to reduce this burden and align application processes between administrations
•  
  recommend whether the current licensing regimes should be retained with improvements/enhancements or replaced.

The review will be supported by the Australian Taxation Office, who administers the warehousing of excise equivalent goods under the Customs Act 1901.  Excise equivalent goods are imported alcohol (other than wine), tobacco and fuel that, if produced or manufactured in Australia, would be subject to excise. With the exception of providores, catering bonds and duty free stores, responsibility for the licensing and administration of warehouses that store excise equivalent goods moved to the Australian Taxation Office on 1 July 2010.

 
The review will not review the:

• Fees and charges applicable to customs brokers, depots or warehouses as those were the subject of a separate review, the Joint Review of Border Fees, Charges and Taxes, which was announced in September 2014 by the then Minister for Immigration and Border Protection, the Hon. Scott Morrison MP. It is recognised however that changes to the licensing regimes might result in changes to the cost base.
•  
  Continuing Professional Development Scheme for customs brokers as the Continuing Professional Development Scheme was reviewed by the Australian Customs and Border Protection Service in 2014.
• Cargo reporting requirements.

In formulating recommendations, the current cost of licensing customs brokers, depots and Department-administered warehouses will be considered. Any recommendations to improve the efficiency of the current licensing process will need to be fully costed.

 
During the review, DIBP will consult with stakeholders, including industry, importers and exporters, non-government stakeholders, and relevant Government agencies.

Where appropriate, DIBP and Australian Taxation Office will engage in consultative discussions with stakeholders and seek their comments and feedback through submissions. Based on these submissions, DIBP will develop draft recommendations which will be circulated to stakeholders for further comments.

 
The review will be completed by 30 June 2016.