Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Hansard source

I rise to speak on the Customs Amendment (Australian Trusted Trader Programme) Bill 2015. Labor fully supports this bill which implements quality assurance standards for traders subject to Customs oversight. These standards are based on the so-called SAFE framework proposed by the World Customs Organization in 2005. In the 10 years since then, the SAFE standards have been adopted by all of Australia's major trading partners, including the United States, China, Japan, the European Union, Canada and New Zealand. This bill brings Australian standards into line with theirs.

Under the new framework, traders that comply with the standards will be assessed as low risk and will benefit from reduced regulation. These trusted traders will be removed from the traditional transaction-based border risk assessment. That risk assessment, it should be understood, is primarily an administrative process concerning matters such as tariff rulings and customs dues. The tests conducted by agencies such as the Australian Federal Police, biosecurity regulators and other security agencies will continue to apply. This legislation has been prepared in consultation with stakeholders, including the Australian Industry Group, the Australian Federation of International Forwarders and the Australian Peak Shippers Association, who have indicated their support for the change.

The new standards will operate through participation in an Australian Trusted Trader Program, for which traders will be able to nominate themselves.    If the Comptroller-General of Customs considers that an applicant is able to satisfy the qualification criteria, the administrative benefits will be conferred through a trusted trader agreement. The comptroller-general may unilaterally end, suspend or modify an agreement if he or she reasonably believes a trader is not complying with an agreement. If the Comptroller-General refuses to enter into an agreement, the decision may be reviewed by the Administrative Appeals Tribunal.

The qualification criteria follow those laid out in the SAFE framework and the World Trade Organization's Agreement on Trade Facilitation.    Under the criteria, a trader must have been participating in an international supply chain for a minimum of two years before nominating for an agreement. It must also be a legal entity that is able to conduct business, has an Australian business number, submits its record keeping for scrutiny and is subject to periodic security checks. Applicants must demonstrate that they have adequate procedures to ensure that communications on the import or export of goods are accurate, secure and submitted in accordance with regulation. They must also prove supply chain security standards—namely, adequate procedures for the security of cargo, staff, and business partners and third parties.

The Trusted Trader Program will begin as a 12-month pilot program involving 40 companies. This is a reform that will ensure that Australia's customs procedures align with world's best practice. On that basis, Labor is pleased to support it.