Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to 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.

Scott Ryan (Victoria, Liberal Party, Parliamentary Secretary to the Minister for Education and Training) Share this | Link to this | Hansard source

The Customs Amendment Australian (Trusted Trader Programme) Bill 2015 will amend the Customs Act 1901 to establish the Australian Trusted Trader Program. The program will introduce differentiated trust-based regulatory treatment at the border for those entities that meet or exceed international supply chain security and trade compliance standards.

The proposed changes to the Customs Act will allow the Comptroller-General of Customs to enter into a trusted trader agreement with an entity that has nominated to participate in the program. A decision of the Comptroller-General of Customs to refuse to enter into a trusted trader program is reviewable by the Administrative Appeals Tribunal. The bill will allow the Comptroller-General of Customs to vary a trusted trader agreement following a validation, including physical inspection and audit, to release an entity from certain statutory obligations or enable the entity to meet certain statutory obligations in an alternative manner. A decision of the Comptroller-General of Customs to refuse to vary a trusted trader agreement is also reviewable by the AAT. The bill will allow the Comptroller-General of Customs to vary, suspend or terminate a trusted trader agreement unilaterally. A decision of the Comptroller-General of Customs to vary, suspend or terminate a trusted trader agreement is also reviewable by the AAT. The bill will allow the Comptroller-General of Customs to publish and maintain a public register containing information in relation to each trusted trader agreement entered into. It will allow the Comptroller-General of Customs to make rules, through a legislative instrument, in relation to the operation of the program.

In summary, the reform delivered through this bill will support the government's priority of ensuring Australia's ongoing success as an open economy. The bill will enable the Australian Border Force and the Department of Immigration and Border Protection to create stronger borders by shrinking the haystack. The commencement of the program will enhance Australia's capacity at the border to maintain the exponential growth in trade volume by diverting resources away from highly compliant traders to focus on risk and noncompliance. I thank senators for their contribution and commend the bill to the chamber.

Question agreed to.

Bill read a second time.