Depot licence holders must provide adequate training

Notice 2013/56 (condition 28) states depot licence holders must provide adequate training to make staff aware of their obligations in dealing with goods subject to the control of Customs.
 

In order to support members with this compliance requirement, Freight & Trade Alliance (FTA) has received input from the Australian Border Force (ABF) in producing a training package titled "SEC 77G DEPOTS - Obligations in dealing with goods subject to ABF control".

Infringement Notices soar with depot operators under the compliance spotlight  

In an environment where the ABF is increasingly looking to deliver benefits to "Trusted Traders", it is essential for importers, exporters, customs brokers and freight forwarders to contract compliant and qualified depot operators as a part of a secure supply chain.
 

Depots are licensed under the Customs Act (section 77G) and are subject to statutory conditions (section 77N) and additional conditions (section 77Q).
 

The ABF conducts visits to licensed depots to check that these conditions are complied with.

This includes, but is not limited to, checks to ensure that:

• Visitor logs are in the approved format and completed correctly

• CCTV systems are fully operational

• Fencing is structurally sound

• ABF signage is displayed correctly

• Deadhouse/cage is being used appropriately

• Firearms and other high-risk goods are stored inside the deadhouse

• The ABF is notified of new staff members within 30 days of commencement.

A breach of a licence condition may lead to administrative action, including infringements, prosecution, suspension or even cancellation of the licence.

Putting this into perspective, the Goods Compliance Report – January 2018 highlighted the value of Infringement Notices from the period 1 July to 30 November 2017. Breaches against Sec 33(6) of the Customs Act 1901 "failure to keep goods safely or failure to account for goods" topping the chart .

While deliveries without authority remain a serious concern for the ABF, the report also provides the following case studies addressing non-compliance by depots (NOTE: content reproduced verbatim from the Goods Compliance Report – January 2018)
 

Case study 1: Unauthorised changes to licenced premises

ABF Officers conducted an onsite licence check of a depot. They identified that unauthorised modifications had been made, including the relocation of the deadhouse cage and changes to the car park.

Under section 77N of the Customs Act, the holder of a licence must not cause or permit a substantial change to be made in a matter affecting the physical security of the depot.

Licensees who seek to make substantial changes to the existing licensed site must be granted approval to 'vary' their licence before any changes are made. Modifications without permission are in breach of the Customs Act.

In this case, the ABF issued the depot with a warning letter for two breaches.

Case study 2: Unauthorised export

ABF Officers assessed the status of held cargo at a depot. Depot staff were unable to locate the particular item. The depot subsequently located the item and re-exported it on the next flight, despite the consignment having a status of 'held' in the ICS.
 

Under section 77Q of the Customs Act, the holder of the licence must not facilitate transhipment or export of goods where there is a 'held' status on the import declaration or cargo report to which the goods are subject.
 

As a result, the depot was issued with an infringement notice for $8,100*.

Case study 3: Temporary fencing

ABF Officers visited a Cargo Terminal Operator (CTO) to assess the status of permanent fencing surrounding the CTO. They identified that permanent fencing had not been installed and there were holes in the temporary fencing.
 

This is an offence under section 102CK of the Customs Act and a warning was issued to the CTO. During later visits, ABF Officers found minimal progress on the installation of permanent fencing to address this and an infringement of $8,100 was issued*.

*note - as of 1 July 2017, there was an increase in penalty units - the same breach now would result in an infringement of $9,450).

WEBINAR - Goods Compliance Update – January 2018 (3 CPD points – Stream A - FTA055)

Please refer below to resources from yesterday's webinar deliver by Russell Wiese, Principal Hunt & Hunt Lawyers. 

• PDF of powerpoint presentation "Goods Compliance Update - January 2018"

• Recording of webinar "Goods Compliance Update - January 2018" 

• "Goods Compliance Update - January 2018" – official document as published by the Australian Border Force

 
To complete your online assessment for CPD accreditation, please click HERE
 
Annual CPD / CBC packages are available for members at $165 (incl GST) per person – please note that discounts apply for multiple purchases from the same business – please contact me if your require further details.
 
As discussed during the webinar, please also click HERE for further details about upcoming CPD events.

Paul Zalai - FTA / APSA