Australia: Customs Compliance Focus for 2011 – 2012 and Voluntary Disclosure

Customs Trade and Transport Law e-alert
Last Updated: 22 June 2011
Article by Andrew Hudson and Russell Wiese

Customs has recently used a series of seminars on its "2011/12 Compliance Focus" to stress that deliveries without authority are a major area of concern and will be a specific focus of increased compliance action. Customs also stressed the importance of voluntary disclosure of false or misleading statements that have previously been made to Customs.

In seminars held around the country, Craig Sommerville, the National Manager for Compliance Operations highlighted the following areas of concern:

  • deliveries without authority;
  • cargo control issues associated with major resource projects;
  • cargo reporting timeliness and accuracy;
  • goods of consumer safety concern;
  • imported drug precursors;
  • export of strategic goods;
  • undervaluation of imported goods;
  • incorrect luxury car tax payments; and
  • low value threshold issues (SACs).

As mentioned earlier, a key focus of the seminar and a key focus for Customs Compliance action, will be on deliveries without authority. A delivery without authority occurs where goods are moved from a Customs controlled area, such as a bonded warehouse, prior to an authority to deal being issued by Customs. Moving goods without the authority of Customs, or simply not being able to account for goods that are subject to Customs control, is subject to a variety of responses by Customs including prosecutions for a fault based offence or a strict liability offence. A strict liability offence is one where a person can be guilty of the offence even if that person believed an authority to deal had been issued and there has been no intention to commit the offence. Customs also has the option of issuing an Infringement Notice where it believes a strict liability offence has been committed. The issue of Infringement Notices is governed by Guidelines issued by Customs.

Customs has stated that it will not tolerate movement of goods without authority as it compromises Customs' ability to monitor goods and the integrity of the borders. Customs is much more likely to issue a financial penalty, such as an Infringement Notice, in respect of deliveries without authority, than for other types of offences.

Mr Sommerville also emphasised the benefits of voluntary disclosure of false or misleading statements to Customs. It is an offence to make a false or misleading statement to Customs (regardless of whether the statement results in an underpayment of duty). However, no offence is committed in respect of the false statement if voluntary disclosure is made (subject to certain conditions governing how the voluntary disclosures are to be made). The types of incorrect statements that can inadvertently occur are incorrect tariff classification of goods, stating the incorrect value of imported goods, incorrectly declaring that goods are not prohibited goods, incorrectly claiming that the goods are covered by a free trade agreement or tariff concession order or incorrectly stating that the goods are not the subject of a related party transaction. An incorrect statement can result in an offence being committed, even if the incorrect statement was unintentional.

Our experience is that Customs responds very favourably to entities that voluntarily disclose incorrect statements. Mr Sommerville also said that past voluntarily disclosure is a factor taken into account in respect of future breaches where there has not been voluntary disclosure. A history of being voluntarily compliant will make it easier to convince Customs that any breaches of the law discovered by Customs were inadvertent and do not warrant a severe penalty.

Another comment made by Mr Sommerville was that Customs will be making greater use of Infringement Notices. Mr Sommerville stated that up until now Customs has taken a conservative approach in respect of issuing Infringement Notice and it will now be moving away from that position. Mr Sommerville made clear that Infringement Notices will not be reserved for deliberate misconduct and can be issued even when there was no intention to breach the law. A number of those in industry may consider that Infringement Notices are a minor matter, given that the level of penalties are relatively low. However, an Infringement Notice represents evidence that Customs believes there has been commission of an offence which could lead to heavier penalties and prosecution in the future and could also adversely affect those holding licences issued by Customs. As readers would be aware, one condition of most licences issued by Customs is that the licence holder is "fit and proper" and has not breached relevant legislation. It should be kept in mind that there are mechanisms to appeal the issue of an Infringement Notice.

Given Customs' stated approach, and Mr Sommerville's comments regarding voluntary disclosure, we strongly recommend that if you are aware of any possible breaches, including false statements or movement of goods without authority, you contact us to discuss the best way of disclosing those breaches to Customs. In most cases, voluntary disclosure will have the result that there has been no breach of the Customs Act. Even if this result is not achieved, voluntary disclosure will almost certainly result in a better outcome than if the breach is discovered by Customs.

Please contact us if you would like further information regarding Customs' compliance focus in 2011/12 or how to manage voluntary disclosure of any potential breaches of the Customs Act.

For further information please contact:

Andrew Hudson +61 3 8602 9231 Melbourne
Russell Wiese +61 3 8602 9254 Melbourne

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Russell Wiese
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.