There has been significant interest in the new conditions which
the Australian Customs and Border Protection Service
("Customs") is imposing on those it
licenses including licensed customs brokers, warehouse operators
and depot operators. These new conditions will commence
with effect from 1 July 2012.
The full extent of the changes to be effected by these new
conditions is still far from clear. The CBFCA has already actively
engaged with Customs in expressing concerns regarding the
conditions and reviewing draft versions of the conditions. This
engagement has included a number of meetings with Customs,
correspondence with Customs and the Minister for Home Affairs
regarding the conditions and working to address concerns directly
with Customs. One aim is to seek clarification on a number of the
I have also been involved in that work on behalf of the
While some of the new conditions as applied to licensed customs
brokers relate to new Continuing Professional Development
obligations, the other conditions on those licensed by Customs
create significant new obligations and business risks on those
holding such licenses.
In general terms some of the new conditions include:
Obligations to provide information to Customs in relation to
directors, officers and employees to allow Customs to determine
whether those persons should be able to be employed in such
Obligations to report possible breaches of the law, whether
arising through deliberate or inadvertent act or arising from
omission, as soon as practicable. These obligations apply to
possible breaches of the law and whether the breach is by the
broker, its employees or clients.
Obligations to implement levels of physical and electronic
security at licensed premises.
Obligations to report all and any damage to goods held in
Obligations to control access to Customs electronic systems and
not to allow them to be used for prescribed unlawful purposes.
These changes will require changes to business practices
including new employment conditions, changes to terms and
conditions of trade and changes to operational procedures. They
will also require changes to the types and levels of insurances
held by those in the industry.
As many of you would be aware, I conduct a number of
"Member Forums" for the CBFCA and many of these will be
conducted during July. These new conditions and the consequences
for business will be a primary point of discussion during those
Member Forums. Details can be found on the CBFCA website (www.cbfca.com.au).
As always we will keep you informed of developments and we look
forward to being of assistance.
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.
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