3.1
As noted in chapter 1, the committee received 2 submissions to its inquiry. The organisations which provided submissions were the Department of Home Affairs (Australian Border Force) and the Department of Foreign Affairs and Trade (DFAT).
3.2
The following chapter considers stakeholders’ views regarding the proposed amendments put forward in the bill, and details the committee’s views and recommendation.
Support for the bill
3.3
In providing its views in relation to the bill, the Australian Border Force (ABF) indicated that the bill would amend the Customs Act 1901, with a view to implementing a new regulatory framework that is designed to “facilitate small-scale trials of new trade and customs processes in a controlled, time-limited regulatory environment, with appropriate safeguards”.
3.4
DFAT advised that the bill:
would provide a framework to enable the Australian Border Force (ABF) to establish controlled trials of new technology, business models and regulatory approaches to regulating imports, exports and licensing, with safeguards in place to ensure the security of Australia’s cross-border trading regime.
3.5
The ABF noted that it had consulted with key stakeholders from across the trade and travel sectors regarding the design of the bill, and that stakeholders had shown a keen interest in the implementation of controlled trials. It was argued that consultation had provided ‘valuable insights into issues industry stakeholders are facing at the border and what trials industry might propose’. The ABF noted that some of the major themes raised during consultation included:
the methods importers use to report to government;
information sharing between government and industry;
issues in relation to biosecurity enforcement.
3.6
The ABF submitted that the Department of Home Affairs had released an Exposure Draft (ED) in relation to the bill, which had provided industry stakeholders with the opportunity to formally comment on the proposed legislation, as well as propose amendments. The ABF noted that stakeholder feedback had been considered during the development of the bill.
3.7
The ABF submitted that the bill, if passed, would allow the organisation to build a robust evidence-base, which could inform future government decisions, particularly in relation to larger-scale regulatory reform under the Simplified Trade System (STS) agenda. The STS agenda was described as:
…a microeconomic reform agenda that seeks to create a simpler, more efficient and digitised trade system, which will deliver tangible benefits for Australian businesses, enable trade growth and better protect the community.
3.8
DFAT similarly stated that the bill would support ‘the Government’s Simplified Trade System (STS) agenda…The STS reform agenda is focused on delivering a more efficient and digitised cross-border trade environment’. DFAT continued:
Streamlining existing customs processes has the potential to deliver a range of benefits, including lower administrative costs to Government and more efficient flows of goods across borders, improving the competitiveness of Australian industry. Reducing the regulatory burden and streamlining administrative processes may encourage more businesses, including small to medium enterprises, to engage in international trade.
3.9
DFAT highlighted the importance of international trade, ‘creating jobs and growing economic prosperity’, and described the bill as:
an important step towards developing a more efficient cross-border trading system, that enables Australian businesses and consumers to take full advantage of the benefits and opportunities of international trade.
3.10
The ABF argued that the benefits of the bill, if passed, would include:
the setting of a new regulatory framework, which would allow the ABF to collaborate with industry in conducting proof of concept trials of new trade practices;
a framework which would allow the ABF to trial new industry practices before committing to legislative changes;
the opportunity to build a robust evidence-base to inform future Government decisions on larger-scale reform under the STS agenda;
a framework which would encourage innovation by testing new business models, technologies and regulatory approaches;
the building of an evidence-base for the development of best practice regulation;
a reduction in unnecessary compliance burdens – which would deliver benefits for business and consumers in the form of reduced costs, faster processing times at the border, and more innovative service offerings;
a simplification of Australia’s customs framework (while maintaining and achieving Australia’s border security objectives); and
controlled trials which would offer industry stakeholders the opportunity to conduct live tests of their innovations and gather valuable data and insights.
Committee view
3.11
The committee notes that the bill forms part of the government’s proposed Simplified Trade System (STS) agenda and will support the establishment of a new regulatory framework and the introduction of new technology and business models at the border.
3.12
The committee commends the STS agenda which is supported by this bill, as it will simplify and modernise Australia’s customs framework, while at the same time maintaining Australia’s border security objectives.
3.13
The committee notes the views expressed by stakeholders, which indicated that the proposed new framework would assist the relevant government departments and agencies to conduct trials and build an evidence-base for future regulatory reforms, including more substantial deregulation.
3.14
Stakeholders also argued that a reduction in unnecessary compliance burdens would deliver benefits for businesses and consumers. These benefits would include reduced costs, faster processing times at the border, and more innovative service offerings. They also expressed the view that the testing of new business models, technologies and regulatory approaches would underpin and encourage innovation.
3.15
The committee acknowledges the concerns that arose from the Scrutiny of Bills Committee’s examination of the legislation. Specifically, the committee notes the view that significant matters – including the qualification criteria for participation in controlled trials – should be included in primary legislation.
3.16
In light of the minister’s response to the concerns of the Scrutiny of Bills Committee, the committee is persuaded that the proposed new legislation is appropriately structured. The bill provides for flexibility in a dynamic trade environment, while ensuring that trials will have consistent qualification criteria and can implemented expeditiously. The committee also agrees that the measures proposed in the bill will offer industry stakeholders the opportunity to test innovations, gather valuable data and gain valuable insights.
3.17
The committee is of the view that the bill represents a positive step toward the important goal of simplifying Australia’s customs framework.
3.18
The committee recommends that the Customs Amendment (Controlled Trials) Bill 2021 be passed.
Senator the Hon Sarah Henderson
Chair