Retail Legislation presentation

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20 May 2004
CMR - The Final Countdown Light blue touchpaper
and retire.... ....to 5 October and beyond
Presentation to AFIF Conference Presented
byAndrew Hudson Partner Hunt Hunt
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Background of Hunt Hunt

• Established in 1929
• 106 Partners (Yes I am Partner 106)
• Offices
• Sydney
• Melbourne
• Perth
• Brisbane
• Newcastle
• Eastwood
• Adelaide
• Canberra

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Background of Hunt Hunt (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

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Background of Hunt Hunt (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

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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

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CMR - The Final Countdown

• Dont 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

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Steps to manage the operative CMR stages

• 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!

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STEP 1

• What has already happened with CMR

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What 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!

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What 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

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STEP 2

• Review what is actually going to happen

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Review 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

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STEP 3

• Consider steps to be undertaken in the
  organisation

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Changes 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

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Changes to be taken in the organisation

• 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

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Changes to be taken in the organisation

• No movement of goods without Authority or
  Notification to Customs
• Dont 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

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STEP 4

• Advise clients and other contractors of changes

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Recommend 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

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Recommend 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

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STEP 5

• Increase fees!

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Conclusion Questions