CMR - The Final Countdown “Light blue touchpaper and retire....” “....to 5 October and beyond” CMR - The Final Countdown “Light blue touchpaper and retire....”

CMR - The Final Countdown

“Light blue touchpaper and retire....”

“....to 5 October and beyond”

CMR - The Final Countdown

“Light blue touchpaper and retire....”

“....to 5 October and beyond”

Presentation to AFIF ConferencePresentation to AFIF Conference

Presented byPresented byAndrew Hudson Andrew Hudson

PartnerPartner

Hunt & HuntHunt & Hunt

20 May 200420 May 2004

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are needed to see this picture.



Background of Hunt & HuntBackground of Hunt & Hunt

Established in 1929

106 Partners (Yes I am Partner 106)

Offices

• Sydney

• Melbourne

• Perth

• Brisbane

• Newcastle

• Eastwood

• Adelaide

• Canberra



Background of Hunt & Hunt Background of Hunt & Hunt (cont)(cont)

• Darwin

• Hobart

• Auckland

• Shanghai

Established Practitioners in Customs, Trade and Transport to include

• Customs

• Commercial

• International Trade

• Marine and Aviation Insurance

• Litigation

• Compliance

• Property



Background of Hunt & Hunt Background of Hunt & Hunt (cont)(cont)

Andrew Hudson

• Past Chair , Customs and International Transactions Committee of the Law Council of Australia

• Steering Committee of the International Law Briefing Committee of the Law Institute of Victoria.

• Website - www.hunthunt.com.au

• Customs, Trade and Transport Team



““Light blue touchpaper and retire...” Light blue touchpaper and retire...”

What does the title mean?

Used to be the warning on fireworks. You lit the blue paper and ran away to protect yourself before the explosion

Aim of this presentation is to indicate how to protect yourself so that you do not get hurt in the explosion and can enjoy the fireworks



CMR - The Final CountdownCMR - The Final Countdown

Don’t be mistaken - only certainties in life

• Birth

• Taxes

• Death

• CMR Compliance

You cannot ignore CMR

You can manage with proper preparation

You can even benefit from clients



Steps to manage the “operative” CMR Steps to manage the “operative” CMR stagesstages

STEP 1

• What has already happened

STEP 2

• Review what is actually going to happen

STEP 3

• Consider steps to be undertaken in the organisation

STEP 4

• Advise clients and other contractors of changes

STEP 5

• Increase fees!



STEP 1STEP 1

What has already happened with CMR



What has already happenedWhat has already happened

1 July 2002 changes

• New strict liability penalties

• New audit powers

• New document and record retention obligations

• Infringement Notices

• New emphasis on compliance and regulation

Changes to 1 July 2002 changes

• Persons causing statements to be made liable under Section 234 and Section 243U

• New document keeping obligations

• Changes to Voluntary Disclosure. Not if any investigations or proceedings commenced!



What has already happenedWhat has already happened

Enforcement action being taken

• Goods under Customs control

• Perception of low compliance on Export reporting

• Focus on the reporters

Remember that Customs website and Guidelines for Infringement Notice Scheme may not be entirely current



STEP 2STEP 2

Review what is actually going to happen



Review what is going to happenReview what is going to happen

Dust off old material

Training and past sessions may be slightly out of date

Secure and review ACS Material

Attend Industry sessions whether “refresher” or “new”

Changes to transitional arrangements for reporting between legacy systems and ICS



STEP 3STEP 3

Consider steps to be undertaken in the organisation



Changes to be taken in the organisationChanges to be taken in the organisation

Consider an audit of own practice

Do you have your Digital Certificate?

• Protect access as person “signing” primarily liable for “reporter” errors

• Report misuse

• Stop access to the non-authorised and ex-staff

Contract with software providers if not done so previously

Registered for access?

What type of access to ICS?

Book times for internal training




Map out all activities and processes to identify risks

Establish and apply new procedures for checking accuracy of all entries and reports not just Import entries

• Export entries

• Movement through warehouses

Send nothing for export unless CAN in place - “Deliverer” the only person liable!

Time for internal documentation and checklists




No movement of goods without Authority or Notification to Customs

Don’t forget to overlay the “in-bound” reporting requirements overseas

• Sea and Air Cargo to US

• US Bioterrorism

• Indian advanced reporting

• Maritime and Aviation Security

Time to look at every aspect of business

• Steps to authorise movement of goods

Revise Terms and Conditions to cover new liabilities and share with clients



STEP 4STEP 4

Advise clients and other contractors of changes



Recommend changes to ClientsRecommend changes to Clients

Use as a marketing opportunity

Conduct information sessions

• Enlist ACS help

• Enlist AFIF help

Advise them of impending changes

• “I told you it would happen”

• Start a “Countdown” clock

Introduce new Terms and Conditions



Recommend changes to ClientsRecommend changes to Clients

Remind them of need for accuracy and timeliness

• Suggest an Audit

• Remind that new penalties on a strict liability basis

• Remind them that their cargo may be significantly delayed

• May lose established benefits

• Appeal to real, commercial concerns

Suggest Accredited Client

Improve reporting information exchange

Dealing with errors/contingencies



STEP 5STEP 5

Increase fees!



Conclusion & QuestionsConclusion & Questions

Documents

CMR - The Final Countdown “Light blue touchpaper and retire....” “....to 5 October and beyond” CMR - The Final Countdown “Light blue touchpaper and retire....”