Philip Ruddock (Berowra, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill, the Customs Legislation Amendment (Augmenting Offshore Powers and Other Measures) Bill 2006, contains amendments to the Customs Act 1901 and the Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001 that relate to:

• border enforcement powers under the Customs Act;
• Customs brokers’ employment arrangements;
• duty recovery and payments of duty under protest; and
• false and misleading statements made under the new SmartGate system.

This bill empowers Customs officers and other Commonwealth officers, immediately after boarding a ship or aircraft for various border enforcement purposes under the Customs Act, the Criminal Code and any relevantly prescribed act, to conduct personal searches for, take possession of and retain:

(a) weapons;

(b) items that may assist a person to escape detention; and

(c) evidence of the commission of a relevant offence.

The new powers ensure the personal safety of the officers in exercising their enforcement functions, help prevent the escape of any person detained as a suspect, and help prevent the disposal of evidence. This bill will also make amendments to other provisions relating to search powers in the Customs Act.

To recognise the changing employment practices in the customs brokers’ community, this bill will remove the current restrictions in the Customs Act prohibiting individual customs brokers from being employed by more than a Customs brokerage at the same time.

The bill amends the Customs Act to limit the time for the recovery of customs duty to four years in all cases, except in the case of fraud or evasion where no time limit will apply. The proposed new regime is a response to the decision of the High Court in Malika Holdings Pty Ltd v Stretton (2001) 204 CLR 290 and is consistent with the existing regime for the recovery of other indirect taxes.

The bill will also clarify the process for making a payment of customs duty under protest. Further, the bill will amend the Customs Act to enable the CEO, in certain circumstances, to offset an amount of unpaid duty on goods against any amount of refund or rebate the owner would be eligible for if the owner pays the duty.

Customs will be introducing the electronic SmartGate passenger processing system in early 2007 that will allow eligible air passengers and crew to use an automated clearance process through the immigration point at the border.

This bill will amend the Customs Act to ensure that any false and misleading information provided using the SmartGate system is covered by the existing offence provisions relating to making false and misleading statements to an officer of Customs.

I commend the bill to the House.

Debate (on motion by Ms Roxon) adjourned.