1. 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 Conference Presented by Andrew Hudson Partner Hunt & Hunt Hunt & Hunt 20 May 2004

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

3. Background of Hunt & Hunt (cont) Darwin Hobart Auckland Shanghai F 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) F 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.auwww.hunthunt.com.au Customs, Trade and Transport Team

5. “Light blue touchpaper and retire...” F What does the title mean? F Used to be the warning on fireworks. You lit the blue paper and ran away to protect yourself before the explosion F 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 F Don’t be mistaken - only certainties in life Birth Taxes Death CMR Compliance F You cannot ignore CMR F You can manage with proper preparation F You can even benefit from clients

7. Steps to manage the “operative” CMR stages F STEP 1 What has already happened F STEP 2 Review what is actually going to happen F STEP 3 Consider steps to be undertaken in the organisation F STEP 4 Advise clients and other contractors of changes F STEP 5 Increase fees!

8. STEP 1 What has already happened with CMR

9. What has already happened F 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 F 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 F Enforcement action being taken Goods under Customs control Perception of low compliance on Export reporting Focus on the reporters F 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 F Dust off old material F Training and past sessions may be slightly out of date F Secure and review ACS Material F Attend Industry sessions whether “refresher” or “new” F 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 F Consider an audit of own practice F 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 F Contract with software providers if not done so previously F Registered for access? F What type of access to ICS? F Book times for internal training

15. Changes to be taken in the organisation F Map out all activities and processes to identify risks F Establish and apply new procedures for checking accuracy of all entries and reports not just Import entries Export entries Movement through warehouses F Send nothing for export unless CAN in place - “Deliverer” the only person liable! F Time for internal documentation and checklists

16. Changes to be taken in the organisation F No movement of goods without Authority or Notification to Customs F 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 F Time to look at every aspect of business Steps to authorise movement of goods F 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 F Use as a marketing opportunity F Conduct information sessions Enlist ACS help Enlist AFIF help F Advise them of impending changes “I told you it would happen” Start a “Countdown” clock F Introduce new Terms and Conditions

19. Recommend changes to Clients F 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 F Suggest Accredited Client F Improve reporting information exchange F Dealing with errors/contingencies

20. STEP 5 Increase fees!

21. Conclusion & Questions