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Customs licensing review – update
We are considering the scope of the current customs licensing review given recent media coverage of associated issues. This means the draft recommendations will not be released as scheduled.
We are aware of the interest in the review and look forward to continuing to work cooperatively with industry. We expect to provide further information in coming weeks.
Terms of reference
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 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 assess all licensing regimes under the Customs Act, including the licensing of customs brokers, depots and warehouses (including providores, catering bonds and duty free stores and excise equivalent goods).
The review will examine the legislation and administrative processes for the licensing regimes. This will necessitate an assessment of the:
- relevant provisions of the Customs Act and the Customs Regulation 2015 to confirm that they remain necessary and appropriate, and to identify any opportunities to streamline or simplify these arrangements
- current application process for a licence from the perspective of an applicant in preparing the application
- current application process for a licence from our perspective and the Australian Taxation Office in processing the application
- current administration by us and the Australian Taxation Office of the licensing regimes, including available resources and the segregation of functions (policy and operations), and opportunities to increase consistency across the regimes
- functions, composition and processes of the National Customs Brokers Licensing Advisory Committee to identify possible improvements/enhancements or alternative models.
As part of the review, we will consider if:
- information required to be submitted with an application remains appropriate
- conditions to which a licence is subject and the consequences for any breaches remain appropriate
- securities should be taken from depot and warehouse licence holders to ensure compliance with the Customs Act and to protect the revenue, and if so, the factors that should be taken into account in determining the amount of security
- there are consistent processes between administrations and licence types.
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, we will consult with stakeholders, including industry, importers and exporters, non-government stakeholders, and relevant Government agencies.
Where appropriate, we and Australian Taxation Office will engage in consultative discussions with stakeholders and seek their comments and feedback through submissions. Based on these submissions, we will develop draft recommendations which will be circulated to stakeholders for further comments.
Timeframes for review
|2 November 2015||Terms of reference and discussion paper released |
|31 December 2015||Closing date for stakeholders to lodge submissions|
|TBA||Draft recommendations publically released for comment|
|TBA||Closing date for stakeholders to lodge comments on draft recommendations|
|TBA||Recommendations submitted to the Comptroller - General of Customs for consideration|
Review of customs licensing regimes discussion paper (479KB PDF) provides further details on how to provide a submission, and covers a range of issues on which we seek information and feedback.
Any enquires concerning the review should be directed by email to