{"id":"C2004A02424","name":"Customs Securities (Penalties) Act 1981","slug":"customs-securities-penalties-act-1981","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"46 of 1981","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":6757,"registerId":"commonwealth-C2004A02424-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Customs Securities (Penalties) Act 1981.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act shall come into operation on the day on which the Customs Amendment (Tenders) Act 1981 comes into operation.","sortOrder":1},{"sectionNumber":"2A","sectionType":"section","heading":"General administration of Act","content":"#### 2A General administration of Act\n\n  The Comptroller‑General of Customs (within the meaning of the Customs Act 1901) has the general administration of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n  (1) In this Act, unless the contrary intention appears:\n\n> Customs undertaking means an undertaking given, in accordance with subsection 267(1) of the Customs Act 1901, by a person who furnishes a tender in accordance with a call for tenders made under a scheme under Part XV of the Customs Act 1901.\n\n> prescribed percentage, in relation to goods, means the prescribed percentage set out in the Customs undertaking that relates to the goods.\n\n> relevant Customs undertaking, in relation to a tender furnished in accordance with a call for tenders made under a scheme under Part XV of the Customs Act 1901, means the undertaking relating to that tender that is given in accordance with subsection 267(1) of the Customs Act 1901.\n\n  (2) For the purposes of this Act, where a Customs undertaking sets out the value of a unit of the goods to which the undertaking relates, the value of the goods shall be calculated in accordance with that value.","sortOrder":3},{"sectionNumber":"3A","sectionType":"section","heading":"Act does not extend to Norfolk Island","content":"#### 3A Act does not extend to Norfolk Island\n\n  This Act does not extend to Norfolk Island.","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Penalty","content":"#### 4 Penalty\n\n  Where:\n    (a) a tender furnished by a person in accordance with a call for tenders made under a scheme under Part XV of the Customs Act 1901 has been accepted; and\n    (b) the person refuses, or fails, when required by a Collector under section 42 of that Act to do so, to give a security for payment of any penalty in connection with the relevant Customs undertaking that the person may become liable to pay to the Commonwealth under the Customs Undertakings (Penalties) Act 1981;\n  there is payable by that person to the Commonwealth, by way of penalty, an amount equal to the prescribed percentage of the value of the goods to which that undertaking relates.","sortOrder":5}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Nothing in the supplied text indicates a change of scope from the Act's original stated mechanics. The Act narrowly establishes a penalty for accepted tenderers who refuse or fail to give required security (s 4), defines key terms used to compute that penalty (s 3), sets administration responsibility (s 2A), ties commencement to another Act (s 2), and excludes Norfolk Island (s 3A). No material in the provided text shows an expansion or contraction of that scope compared with the instrument's internal mechanics."},"complexity_factors":["Short, single-purpose statute with a narrow penalty rule (s 4).","Cross-references to other legislation: the Collector's power under section 42 of the Customs Act 1901 and the Customs Undertakings (Penalties) Act 1981 (s 4; s 3 definitions).","Reliance on terms inserted by tenderers (the \"prescribed percentage\" and any unit value in the Customs undertaking) to calculate penalties (s 3, s 3(2), s 4).","Administrative discretion embodied in the Collector's requirement for security and in the Comptroller‑General's administration (s 4; s 2A).","Commencement dependency on another amending Act (s 2) and geographical exclusion (s 3A)."],"plain_english_summary":"This Act creates a single monetary penalty: if a tender accepted under Part XV fails or refuses to give security when a Collector requires it, the tenderer must pay the Commonwealth a penalty equal to the undertaking’s prescribed percentage of the goods’ value (using any unit value stated). The Comptroller‑General administers the scheme and Collectors trigger the penalty. It enforces Customs undertakings by shifting financial risk and compliance incentives onto tenderers."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: penalising tenderers who refuse to provide security deposits after winning Customs warehousing contracts. No evidence of scope creep — the Act has not been amended to expand beyond this narrow, specific scenario."},"complexity_factors":["Very short statute — only 6 substantive sections","Only 3 defined terms in the interpretation section","Single operative provision (section 4) with straightforward conditional logic (two conditions precedent)","Heavy reliance on external legislation (Customs Act 1901 and Customs Undertakings (Penalties) Act 1981) for context, but no complex cross-referencing mechanism","No exceptions, exemptions, or nested conditional provisions","Simple mathematical formula for penalty calculation (percentage of value)","No delegated legislation or regulation-making powers"],"plain_english_summary":"This law creates a financial penalty for businesses that win government contracts to store or handle imported goods but then refuse to provide a security deposit when asked.\n\n**What it does:**\n- When companies bid for contracts to provide **warehousing or storage services** for imported goods (under a tender scheme run by Customs), they must give a written promise called a **\"Customs undertaking\"** — basically a guarantee about how they'll handle the goods.\n- If a company wins the tender (their bid is accepted) but then **refuses or fails to put up a security deposit** when Customs demands it, this law hits them with a penalty.\n- The penalty is a **percentage of the value of the goods** involved, with the exact percentage set out in their original undertaking.\n\n**Who it affects:**\n- Businesses that tender for **Customs warehousing contracts** — companies that want to run bonded warehouses or other storage facilities for imported goods.\n- The **Comptroller-General of Customs** (the head of Australia's border force) administers this law.\n\n**Why it matters:**\n- It ensures businesses can't win lucrative government contracts and then refuse to back up their promises with financial security. The security deposit protects the government if the company breaks customs rules or loses goods. Without this penalty, companies could dodge their financial responsibilities after winning tenders.\n\n**Key point:** This is a **backstop penalty** — it only applies if someone wins a tender but then refuses to provide the required security deposit. It doesn't apply to other breaches of customs rules (those are covered by different laws)."},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act appears narrowly focused and consistent with its original intent: to impose a financial penalty specifically on tender winners who fail to provide required customs security. There is no evidence of scope creep or broadening beyond this single, targeted purpose."},"complexity_factors":["Heavily dependent on cross-references to other legislation — particularly the Customs Act 1901 and the Customs Undertakings (Penalties) Act 1981 — making it impossible to fully understand in isolation","Specialised customs tender scheme context that most people would be unfamiliar with","Penalty calculation requires understanding of 'prescribed percentage' which is defined within individual undertaking documents rather than in the Act itself","Multiple layered definitions (Customs undertaking, prescribed percentage, relevant Customs undertaking) that refer back to each other and to external legislation","Despite the cross-referencing complexity, the Act itself is very short and its core operation (refuse security = pay penalty) is straightforward once the context is understood"],"plain_english_summary":"## Customs Securities (Penalties) Act 1981\n\n**What does this law do?**\n\nThis Act creates a financial penalty for businesses or individuals who win a government customs tender (a formal competitive bid to import goods under a special scheme) but then **refuse to provide a financial guarantee (called a \"security\")** when asked to by a Customs official.\n\n**How does it work in practice?**\n\nUnder Australia's customs system, certain goods can be imported through a formal tender process (a competitive bidding scheme). When someone wins such a tender, they must give an **undertaking** — essentially a written promise — about how they will handle those goods. As part of this, a Customs Collector (an authorised official) can require the winner to put up a **security**, which is like a financial deposit or guarantee, to back up that promise.\n\nIf the tender winner **refuses or fails** to provide that security when asked, this Act kicks in and they must pay a penalty to the Australian Government. The penalty amount is calculated as a **prescribed percentage** (a specific percentage figure written into their original undertaking/promise) of the **total value of the goods** involved.\n\n**Who does this affect?**\n\n- Businesses or individuals who participate in and win **customs tender schemes** for importing goods\n- Essentially anyone operating under **Part XV of the Customs Act 1901** (the part dealing with special import tender arrangements)\n\n**Why does it matter?**\n\nIt ensures that importers who win government customs tenders actually follow through on their obligations. The financial penalty acts as a deterrent against people who might try to back out of providing the required security after already winning a tender.\n\n**Practical note:** This Act does **not** apply to Norfolk Island."}},"importantCases":[],"_links":{"self":"/api/acts/customs-securities-penalties-act-1981","history":"/api/acts/customs-securities-penalties-act-1981/history","analysis":"/api/acts/customs-securities-penalties-act-1981/analysis","conflicts":"/api/acts/customs-securities-penalties-act-1981/conflicts","importantCases":"/api/acts/customs-securities-penalties-act-1981/important-cases","documents":"/api/acts/customs-securities-penalties-act-1981/documents"}}