Home' MHD Supply Chain Solutions : MHD July-Aug 2017 Contents Our borders have been undermined
by internal conspiracies linked with
organised crime, which has infiltrated the
ranks of both government and industry.
Two reports have also highlighted organised
crime threats and vulnerabilities across our
industry, these being the Parliamentary Joint
Committee on Law Enforcement (PJCLE) 2011
and a 2012 report prepared by Joint Task
Force Polaris, which examined criminality in the
Sydney maritime environment.
These reports highlighted that:
• Individuals with access to restricted zones at
airports and seaports have been identified on
law enforcement high-threat, priority target lists.
• Individuals have accessed cargo movement
information to track illicit goods and have
provided that information to criminal groups.
• Individuals have accessed containers in
terminals to collect illicit goods for criminal
In response, we have seen the introduction
of the AusCheck Legislation Amendment
(Organised Crime and Other Measures) Bill
2013 to amend the Customs Act 1901, and the
AusCheck Act 2007 to mitigate vulnerabilities at
Australia’s borders and focusing on stevedores,
air cargo terminal operators, licenced customs
brokers, depot and warehouse operators.
It is a timely reminder to look at the
obligations emerging from this legislation,
including mandatory reporting of unlawful
activity, ensuring the physical security of
relevant premises and cargo, and fit-and-proper-
person checks on management at Custom’s
request. Non-compliance will attract criminal or
Offence for using information
held by Customs
All users of the Integrated Cargo System (ICS)
also need to beware of penalties for sharing
‘cargo status’ and other restricted information to
aid a criminal organisation.
Penalties include imprisonment for two years
or 120 penalty units (a penalty unit being $180)
As part of the existing depot licensing regime,
the Customs chief executive officer (CEO) or his
delegate must be satisfied that the applicant or
persons who would participate in the management
or control of a depot is a “fit-and-proper” person.
Where a company or partnership applies
for a licence, this means any director, officer
or shareholder of the company who would
participate in the management and control of
the place, to be covered by the licence or any
partner of the partnership.
In addition to the existing matters in
determining whether a person is fit and proper,
the changes require the CEO to consider
whether the person has been refused an aviation
or maritime security identification card (ASIC or
MSIC) or had an ASIC or MSIC suspended or
cancelled in the previous ten years.
Change to depot licence holder’s
All depot licence holders are required to notify
the CEO in writing, within 30 days, where certain
events occur. This includes a requirement to
notify the CEO when persons are convicted of
certain offences or become bankrupt.
The changes to the Customs Act introduce
an additional condition on the holder of a depot
licence to notify the CEO in writing, within 30
days, where the licence holder, or certain persons
where the licence holder is a company or
partnership, have been refused an ASIC or MSIC
or had an ASIC or MSIC suspended or cancelled.
Amendments made to the Customs Act have
increased the time period for which a person
must keep a record that verifies the contents of
a communication made to Customs, from one to
five years. This ensures consistency with other
Customs Act record-keeping obligations.
Infringement Notice Scheme
The Infringement Notice Scheme (INS)
is an alternative to prosecutions allowing
for ‘on the spot fines’ across Customs’
activities in passenger processing and
cargo management. Changes to the
scheme have been implemented following
recommendations from the Australian
National Audit Office (ANAO) review.
Regulations now prescribe the maximum
penalty at 25% of a court penalty (cap of 15 units
for an individual and 75 units for a company).
As reported in the latest Goods Compliance
Update issued in April 2017, concerning data
was produced for the 1 July to 28 February 2017
period outlining a range of offences for breaches of
depot licence, failure to meet outturn requirements
and failure to account for goods. On hundred and
twenty-five (125) Infringement Notices were issued
for breaches of Section 33 (6) of the Customs Act
“Moving, altering or interfering with goods subject
to customs control without authority”, with total
fines being $990,900.
Section 77G Deport licence holders must
provide adequate training to make staff aware
of their obligations in dealing with goods
subject to the control of Customs - please refer
to Australian Customs and Border Protection
Notice 2013/56 (condition 28).
In order to satisfy this requirement, Freight &
Trade Alliance (FTA) has developed a training
package titled “SEC 77G DEPOTS - Obligations
in dealing with goods subject to ABF control”.
This e-learning course is available at www.
ComplianceNetFTA.com and takes approximately
1 to 1.5 hours to complete – upon passing the
online assessment a certificate with two years’
validity will be automatically generated.
Importantly, the course provides operational
staff with learning outcomes to be able to
complete day to day activities with confidence
that they are compliant with legal requirements.
Paul Zalai is an advocate for the Australian
freight and trade sectors. For more information
“The course provides learning outcomes to complete
day-to-day activities with confidence that participants
are compliant with legal requirements.”
THE AUSTRALIAN BORDER FORCE CRACKS DOWN ON LICENCED DEPOTS
MHD SUPPLY CHAIN SOLUTIONS — JULY / AUGUST 2017
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