Katy Gallagher (ACT, Australian Labor Party) Share this | Hansard source

Labor supports the Customs and Other Legislation Amendment Bill 2016, which makes a number of changes to the Customs Act and related legislation. The most significant changes concern tariff concession orders which are granted on imported goods when substitutes are not being produced in Australia. These goods can then be imported duty free. The Commonwealth tariff concession gazette publishes about 50 new concession orders a month. Australian manufacturers have 50 days to object before the order comes into effect by producing evidence that the same product is manufactured in Australia. They can also apply to have existing orders revoked. At present, manufacturers lodging objections or seeking to have orders revoked have to satisfy two tests. They must prove that at least 25 per cent of the factory costs of substitutable goods occurs in Australia and that a substantial process of manufacture occurs here. Providing this evidence might mean that Australian businesses have to release confidential accounting records.

The bill reduces the burden of proof for Australian companies by abolishing the 25 per cent requirement. It also clarifies the requirement for Australian producers of made-to-order capital equipment who are seeking to revoke an order or objecting to a new one. These manufacturers will now have five years rather than two to prove their capability. This change acknowledges the fact that two years is insufficient to demonstrate capability to produce equipment for large-scale capital works such as major mining projects, given the time and labour involved in such manufacture. Stakeholders in the manufacturing sector have assured us that they support these changes, which simplify procedures for their members.

The bill allows Australia to honour international agreements that specifically exempt certain imports from fees to be paid at the border. The bill allows the minister to determine by legislative instrument that import processing charges are not liable to be paid by specified persons, persons in respect of specified goods and specified persons in respect of specified goods.

The bill also amends the act to extend the circumstances in which a person can apply to move, alter or interfere with goods for export that are subject to Customs control. It means that screening staff at airports, for example, will be able to open duty free bags and to remove from duty free packaging an item that has triggered an alarm, without infringing the act. In an amendment to the Commerce (Trade Descriptions) Act, the bill allows officers to inspect imported goods that they reasonably believe to be proscribed by regulations. These are all sensible changes and Labor is pleased to support the bill.