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

1. 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

2. Background of Hunt & Hunt • Established in 1929 • 106 Partners (Yes I am Partner 106) • Offices • Sydney • Melbourne • Perth • Brisbane • Newcastle • Eastwood • Adelaide • Canberra

3. 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

4. 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

5. “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

6. CMR - 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

7. 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!

8. STEP 1 What has already happened with CMR

9. 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!

10. 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

11. STEP 2 Review what is actually going to happen

12. 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

13. STEP 3 Consider steps to be undertaken in the organisation

14. 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

15. 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

16. Changes to be taken in the organisation • 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

17. STEP 4 Advise clients and other contractors of changes

18. 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

19. 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

20. STEP 5 Increase fees!

21. Conclusion & Questions