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Changing Customs
Australian Customs has announced new rules for reporting
cargo
 The
Australian Customs Service is changing the way industry reports cargo,
and the systems that currently enable electronic communications between
Customs and industry.
New technology will be rolled out during 2003 and 2004,
and will require all exporters, importers and carriers to change the way
they report the movement of goods across Australia’s borders.
Integrated Cargo System
The new reporting and processing system, the Integrated Cargo System (ICS),
will replace Customs’ existing outdated IT systems with one sophisticated
open system, integrating all the information that industry provides to
Customs. This integration will significantly enhance Customs’ risk
management processes, while the system will also provide industry with
the opportunity to report and track cargo movements more efficiently.
| Updating the way Customs
operates
The re-engineering of the Australian Customs Service’s cargo
management systems was first broached in late 1995. Significant
change had occurred in the handling and movement of cargo, and Customs
CEO Lionel Woodward saw a need for management and practices to reflect
these changes. The result is the largest change in customs legislation
in more than 100 years, and a reworking of some customs operations.
The Integrated Cargo System (ICS) is replacing systems
that use outdated technology. It will streamline the movement of
legitimate goods and improve Customs’ ability to fulfil its
statutory responsibility to protect Australia’s borders.
Given the size of the change, Customs is introducing
the Cargo Management Re-engineering (CMR) project through a series
of phases. This phased approach will allow Customs and industry
time to ensure the smooth introduction of the project’s different
elements.
Phase 1. Legislative
changes were passed by the federal government in July 2001 to update
the Customs Act 1901. The changes related to various legal requirements
for both industry and Customs, including those governing reporters’
retention of commercial documents and records, the introduction
of a new Infringement Notice Scheme dealing with non-compliance,
and additional Customs controls over goods at wharves, airports
or customs, as well as before they reach a Customs controlled place.
Phase 2. Air courier
special reporters were the first to use the Integrated Cargo System
in March 2003. Special reporters will commence reporting details
of individual document consignments to Customs, rather than maintaining
that information in their own dedicated system.
This new level of reporting ensures Customs can more
effectively identify individual risk items, thereby allowing speedier
processing of low-risk goods.
Phase 3. All those
who report export transactions directly to Customs must register
to use the new ICS when the facility opens in August 2003. Service
providers will also need to register their declaration clients.
In order to register to use the new system, businesses and individuals
will need to obtain a digital certificate from a certification authority.
Phase 4. From 1 December
2003, all those involved in the exports chain must report transactions
through the Integrated Cargo System.
Phase 5. From the cut-over
date in June 2004, importers will no longer be able to use existing
import reporting systems, including Sea Cargo Automation, Air Cargo
Automation and Compile.
Assisting industry
These changes constitute a significant overhaul of Customs IT systems
and internal processes, and will require change on behalf of industry.
Customs is making every effort to assist industry to ready itself
through the production of various information materials and numerous
information sessions and training workshops.
The changes will support the federal government’s
focus on border security, better targeting goods of interest to
a variety of government agencies, including drugs, firearms and
any goods that might carry plant or animal disease. At the same
time, the changes will assist traders through improved ship and
aircraft clearing, a facility to identify the status of their cargo,
and a single data entry point to the various agencies involved with
the movement of goods. |
Reporting export goods
The way exports are reported to Customs will change significantly on 1
December this year. Customs’ existing export reporting system, EXIT,
will be switched off and the ICS will commence operations.
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| What’s in the box? Customs’
new systems will speed processing of low-risk cargoes |
Any unprepared businesses will be unable to communicate
with Customs. This means businesses will not be able to deliver their
goods to a place of export, or to load these goods onto a ship or aircraft.
This will not only delay the movement of goods, but may
result in some businesses having to pay multiple transport and storage
costs.
Main changes for exporters include:
- all goods, other than bulk goods or goods exempt from entry, must
have a Customs Authority Number (CAN) before being delivered to a place
of export. A CAN may be an export declaration number (EDN), accredited
client export approval number (ACEAN), consolidated reference number
(CRN), or a transhipment number; goods not required to be entered for
export do not require a CAN;
- cargo terminal operators (CTOs) will have to report the goods’
arrival at the terminal to Customs. This will require reporting a CAN,
the container number, as well as the vessel, voyage and carrier identification
upon the goods’ arrival at the terminal;
- manifests and sub-manifests will only be accepted electronically;
- manifest reporting periods will be extended to three days after departure
for slot/main manifest providers;
- simplified reporting will be introduced for accredited clients;
- increased reporting requirements for the movement of certain prescribed
goods for export;
- the loading of goods for export will only be possible after the CTO
and carrier receive a ‘clear status’ from Customs; and
- 14 export-related offences will commence.
The changes to Customs’ reporting and communication
systems have been legislated by the federal government. It is therefore
critical that all parties in the export chain examine their internal business
processes to ensure they are compliant with the new requirements Customs
will be rolling out.
Changing the way Customs communicates
The new computer system and legislative changes are part of the suite
of changes resulting from Customs Cargo Management Re-engineering (CMR)
project. The CMR project will also result in the introduction of the Customs
Connect Facility (CCF).
The CCF is the gateway to the ICS, through which all communications
between industry and Customs will flow. It will make it possible for Customs
to receive messages and transactions through a variety of reporting options,
including directly-linked communications, the internet, and a range of
other third party networks offering value-added services.
To maximise security, Customs is introducing electronic
signatures to validate user identification. This process, commonly known
as ‘public key infrastructure’ (PKI), will require all businesses
and individuals electronically reporting to Customs to obtain a digital
certificate from a Certification Authority. Once users have their digital
certificate they will be able to register to use the ICS.
All clients communicating directly with Customs must register
prior to accessing the new system. Customs will make the online registration
facility available to clients on 18 August 2003.
Additional information on obtaining a digital certificate
and how to register with Customs is now available at www.customs.gov.au.
| ‘To Do’ list
for exporters
| When |
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What to do |
| Now |
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Review options for re-porting to Customs. Go to www.customs.gov.au,
click on Cargo Management Re-engineering from the navigation
bar, then ‘Cargo Management Re-engineering Internet Site’
on the page, and select electronic communication from the navigation
bar. This page details methods of communicating electronically
with Customs through the ICS. |
| May-Nov |
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Confirm internal systems and Customs ICS are compatible. Customs
is providing industry with a test environment so it can trial
the software they have bought or developed to communicate with
Customs’ new ICS. |
| from May |
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Obtain a digital certificate from a Certification Authority.
All those involved in the export reporting chain will require
a digital certificate to communicate electronically with Customs. |
| Aug |
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Register as a Customs client. All exporters or their agents
must register so they can report electronically after the cut-over
to the new ICS. |
| Nov-Dec |
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Start using ICS. From 17 November the system will be available
to report any goods leaving Australia on or after 1 December
2003. From 1 December clients will only be able to communicate
with Customs through the ICS. |
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Preparing for the ICS
Businesses must start looking at their software requirements and internal
operations as soon as possible to ensure they are ready for the changes.
It is critical that players in the export chain either adapt their existing
software or obtain new software, to ensure they can communicate with the
ICS. Other options will include utilising the services of a prepared third
party or using the Customs Interactive facility.
Systems that are unable to communicate with Customs after
the cut-over date will not be able to obtain the necessary permissions
to allow their cargo to be moved.
The Integrated Cargo System will be available from 17 November
2003 for the reporting of goods leaving Australia from 1 December 2003.
Additional information will be made available closer to the cut-over date.
Customs will hold information seminars during 2003 to provide
industry sectors with details of the new requirements. The Customs Brokers
and Forwarders Council of Australia (CBFCA) and Customs are also jointly
holding workshops throughout 2003 and 2004. The dates and locations can
be found on the Australian Customs
Service’s website.
Further information on all these changes is available
at:
Email: cmr@customs.gov.au
Website: www.customs.gov.au
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