The CBFCA is aware that the DIBP interpretation of the Tribunal decision has significantly changed the way the DIBP undertakes its compliance activity in relation to interpretation of the application of TCOs. The CBFCA as part of its ongoing discussions with the DIBP on this vexatious issue provided its thoughts of TCO issues in its
Discussion Paper with the intention to achieve, for members, a resolution to the uncertainty arising from the DIBP interpretation of this decision what it regarded as a precedent from the Tribunal. Given the longevity of TCOs and the potential for the meaning of some of the words to change over time, the CBFCA suggested it would be beneficial for the DIBP provide guidance as to the contemporary meaning of words commonly used in TCOs, particularly as to words such as
‘comprising’,
‘consisting of’,
‘including all’,
‘being any’ as well as principles as to interpretation. The DIBP interpretation of
Toro and its requirement as to strict adherence to the TCO wording has created significant uncertainty as to application of TCOs as members endeavour to meet their regulatory compliance requirements as well as clients expectations on any customs duty relief.
In the attached
Report, issues which CBFCA raised on behalf of members demonstrates the complexity on issues on which the CBFCA is seeking clarification. From its meeting on 17 August 2015, the CBFCA was encouraged as to the positive position exhibited by the DIBP Industry Assistance, Trade, Customs and Industry Policy Division in addressing issues to seek to develop clear, concise and realistic DIBP policy and process on these issues.
As you can understand, these discussions require the bringing together of differing perceptions from DIBP Industry Assistance, National Trade Advice Centre, and Compliance as each (and one would expect this would not be the case but in reality it is) have a differing and disparate understanding of the interpretation of the issues, particularly as to legal, policy and process requirements.
The CBFCA’s request and issues in to its Discussion Paper and the Reports have been recognised by the DIBP for early and urgent consideration.